Getting our deposit back

A

Arianna

Guest
Hi

We signed a contract to buy a house in Dublin back in April and we paid a deposit of eur30,000. In spite of the fact that the closing date was 3rd June the vendor has yet to countersign the contract, and we have got reasons to believe that it is going to be another several months before they do (if they do).
Not wanting to wait any longer we told our solicitor that we want to rescind the contract and get our money back. The answer was that we can have the deposit back but it is up to the vendor to decide when and how they want to give us the money.
So:
- if we decide to wait for them to sign the contract and give us the house it could be months or years before they do so (and in the meanwhile they can pull out at any moment they like)
- if we decide to rescind the contract and ask for the money back the vendor can take months, even years to give it back to us.

It is quite an absurd situation. We don't have any right to demand the closure of the contract or get our money back within any set timelines. Hypothetically the vendor could just keep our money for years and years without giving us anything back, and we would not have any rights over it. As a result we're losing interest on the 30K and we can't use the money for any other investment.

Has anybody had a similar experience? Any advice is welcome

Thanks!
Arianna
 
So, the 30K - did they cash the cheque ? or was it a bank draft or what?

My view is that (a) if the contracts are not signed by both parties and exchanged and (b) the deposit cheque has not been cashed then there is no enforceable binding contract in existence. Things change if either situation is the case.

If they sign the contract then it has to be on the basis of agreement on price, closing date and contents included. So even if they now sign, which seems unlikely, they need to agree on a closing date - which is probably what the sticking point is.

If you want out, then say so, have your solicitor put it in writing and demand your money back in seven days, failing which you should issue proceedings. They can either return signed contracts or give you back your money.

Is anyone else noticing an increasing amount of "chain" problems? No binding contract until quite late but whole chain can collapse at any time?

mf
 
Arianna said:
Hi

We signed a contract to buy a house in Dublin back in April and we paid a deposit of eur30,000. In spite of the fact that the closing date was 3rd June the vendor has yet to countersign the contract, and we have got reasons to believe that it is going to be another several months before they do (if they do).
Not wanting to wait any longer we told our solicitor that we want to rescind the contract and get our money back. The answer was that we can have the deposit back but it is up to the vendor to decide when and how they want to give us the money.
So:
- if we decide to wait for them to sign the contract and give us the house it could be months or years before they do so (and in the meanwhile they can pull out at any moment they like)
- if we decide to rescind the contract and ask for the money back the vendor can take months, even years to give it back to us.

It is quite an absurd situation. We don't have any right to demand the closure of the contract or get our money back within any set timelines. Hypothetically the vendor could just keep our money for years and years without giving us anything back, and we would not have any rights over it. As a result we're losing interest on the 30K and we can't use the money for any other investment.

Has anybody had a similar experience? Any advice is welcome

Thanks!
Arianna
Click to expand...

just to check have contracts stating a closing date been signed by both parties ?
 
Hi

Just to clarify:
1) we paid the deposit with a bank cheque, which unfortunately has already been cashed
2) the vendor did not "fully" counter sign the contract. To be more precise the vendor is a couple who is divorcing, the wife countersigned but the husband didn't

OUr solicitor is telling us that if we ask for the 30K back the vendor can decide when they want to give us the money back, and that could take years. Is that the case?
We really don't know what to do.....
 
Arianna said:
Hi

Just to clarify:
1) we paid the deposit with a bank cheque, which unfortunately has already been cashed
2) the vendor did not "fully" counter sign the contract. To be more precise the vendor is a couple who is divorcing, the wife countersigned but the husband didn't

OUr solicitor is telling us that if we ask for the 30K back the vendor can decide when they want to give us the money back, and that could take years. Is that the case?
We really don't know what to do.....
Click to expand...

if they are not counter signed then you don't have a contract ....

Sounds like theft to me if they cashed your deposit cheque without signing the contact....or am I missing something ?
 
does'nt add up... all parties to the contract ie husband and wife must sign for the contract to be binding, so it does'nt seem like you have a legally binding contract signed which means you should be able to pull out with deposit fully refundable... The draft should only have been cashed through your solicitors or the vendors solicitors account and not by the vendor themselves. As far as im aware the deposit should not be in the hands of the vendor. but held by the vendors solicitor and handed over with the balance ( typically mortgage cheque) on closing.

No one has the right to pocket 30,000 of your money and not sign a contract for sale... thats crazy...and your solicitor should be doing more to retrieve your deposit.

best of luck with it.
 
OUr solicitor is telling us that if we ask for the 30K back the vendor can decide when they want to give us the money back, and that could take years. Is that the case?

What could take years? How could they defend a court action? Why would they run the risk?
It could take years? I don't think so - if there is no binding contract and if you want out, they have no entitlement to your deposit and you can sue for the recovery.

BUUUUUUUT

Is the issue here that one of a divorcing couple has signed, one has not so there is a technical issue as to whether or not the contracts could stand up in court? i.e. has one divorcing party an entitlement to bind the other ? Could a contract be construed notwithstanding that the contracts have not been exchanged?

Icky - I hate when warring parties involve innocent bystanders. And mess them around as here. Get tough, sit down with your solicitor, make yourself fully conversant with the situation, make a decision as to what you can do and then do it.

mf
 
thanks for your advice. The cheque has been cashed by the vendor's solicitor.
 
Your solicitor has something to answer here. Ask your solicitor what legal right the vendor has to hold on to your deposit (i.e. where in contract law is this allowed). Also ask him/her why you were not informed of this before you handed over the deposit. After all you are paying the solicitor to look after your interests. In any event your solicitor should have advised you to send the deposit to the vendor’s solicitor rather than the vendor. In any property transaction I’ve been involved in the money has been passed between the solicitors. In the intervening period your solicitor should have contacted the vendor’s solicitor to check out (a) is a declaration required under the Family Home Act (which it may well be if the family is divorcing) and (b) has planning permission been properly obtained for any modifications made to the property. There is also a standardised list of items (objections and requisitions on title) produced by the Law Society that your solicitor should have had agreed with the vendor’s solicitor. So you should ask your solicitor what contacts he/she has had with the vendor’s solicitor and what the results were. If the answer is none I think you should consider looking for a new solicitor and perhaps a complaint to the Law Society. I also think that you are exposing yourself to a degree of risk if you are seen as the one that break the contract. If you have signed a contract and subsequently break it your deposit could be at risk. Ask your solicitor to clarify with the vendor’s solicitor has the vendor signed the contract or is the vendor repudiating the sale. If the latter ask that the vendor, as the one repudiating the sale, to return the deposit immediately.
 
PMU its a pity i have my own solicitor as i would be looking for you , great reply
 
who did you pay the deposit to, the vendor or an agent? an agent will ussually hold a deposit until the contracts are signed
 
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