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Rights When Buying a House From a Receiver

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    #32
    TheDriver
    Registered Users Posts: 12,500 ✭✭✭✭TheDriver


    Hence a very good solicitor is needed. Probably easier if its a person with few houses rather than complicated company


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    #33
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    TheDriver wrote: »
    That post gave me a headache! Surely if there is a receiver then there must be legal judgement giving them ownership of the property to sell it....

    No. Very few receivers are appointed by a court. They are appointed under a debenture or a mortgage. In any case they would put the same conditions into a contract for sale. There are things that the owner of a house will or should know but a receiver may not know.


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    #34
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    hadoken13 wrote: »
    Good god man - can you summarise? That is too boring to read.

    I was asked for examples of clauses. Since you are the o/p they were put up for your benefit. I am not going to summarise. If you buy from a reciever or bank in possession your solicitor will get a contract with clauses like that in it. If he reads it he may well tell you that he can't certify title for a mortgage. If he dosn't read it - God help you!


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    #35
    hadoken13
    Registered Users Posts: 630 ✭✭✭hadoken13


    Claw Hammer wrote: »
    I was asked for examples of clauses. Since you are the o/p they were put up for your benefit. I am not going to summarise. If you buy from a reciever or bank in possession your solicitor will get a contract with clauses like that in it. If he reads it he may well tell you that he can't certify title for a mortgage. If he dosn't read it - God help you!

    That's all the summary I need - thanks.

    We're not buying the house now as the banks only value it at €140 - 150k and the asking price is now €183k with a bit of work to be done on it. Other houses in the estate went for €10k less in January with no work required.


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    #36
    TheDriver
    Registered Users Posts: 12,500 ✭✭✭✭TheDriver


    Most receivers will want sales to go through and will prove all necessary parts of titles, including providing all documents supporting their position. If they cant, it should be in an allsop auction with all the other unsaleable rubbish


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    #37
    Copperk
    Registered Users Posts: 3 ✭Copperk


    Claw Hammer wrote: »
    Receivers insert special conditions in the contract for sale limiting their liability for any problems with the title and making it clear that they will answer any questions with regard to any litigation concerning the property or boundary disputes and it is up to the purchaser to take it or leave it. Effectively it's pay your money and take your chances. The solicitor for the purchaser can do no more than take what he is given and explain the risks to his client. It constantly amazes me that people who will only get the card serviced by a main dealer will buy a property from a receiver.

    I am buying off a receiver it's been goin on months , my solicitor said tat receiver sales are really only for cash buyers cause of all da special conditions , has anyone heard of anyone buying a receiver property wit a morgage ???


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    #38
    Bigus
    Registered Users Posts: 4,942 ✭✭✭Bigus


    Copperk wrote: »
    I am buying off a receiver it's been goin on months , my solicitor said tat receiver sales are really only for cash buyers cause of all da special conditions , has anyone heard of anyone buying a receiver property wit a morgage ???

    Why would the banks give a mortgage on something that they know might backfire. Afterall they know the pitfalls of buying out of receivership.


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    #39
    hadoken13
    Registered Users Posts: 630 ✭✭✭hadoken13


    Copperk wrote: »
    I am buying off a receiver it's been goin on months , my solicitor said tat receiver sales are really only for cash buyers cause of all da special conditions , has anyone heard of anyone buying a receiver property wit a morgage ???

    There would be nothing to stop a person with an existing mortgage from buying a house in receivership. If you get approved for the mortgage then I can't see what the problem is. The seller won't care either way, although cash buyers would get preference - same with most properties.


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    #40
    Copperk
    Registered Users Posts: 3 ✭Copperk


    hadoken13 wrote: »
    There would be nothing to stop a person with an existing mortgage from buying a house in receivership. If you get approved for the mortgage then I can't see what the problem is. The seller won't care either way, although cash buyers would get preference - same with most properties.
    The sale is agreed & mortage completed but now my solicitor has said after all the drama that my mortage company might not accept the special conditions that my solicitor can't get the reciever to fix , tis is my 1st house so wanted to see if anyone had had these problems


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    #41
    msfantasticme
    Registered Users Posts: 3 ✭msfantasticme


    We're currently in the process of buying house from a receiver. Solicitor is warning that things mightn't go smoothly. ATM we're waiting on an engineer's report, a comparison of planning boundaries with current property boundaries, and the engineer is also investigating if there are any outstanding utility bills associated with the property.

    The bank have given us the green light, so we're just waiting on the above issues to be resolved. I've heard solicitors can be slow in these circumstances, but hopefully it will be worth the wait...


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    #42
    makeorbrake
    Registered Users Posts: 4,664 ✭✭✭makeorbrake


    Copperk wrote: »
    The sale is agreed & mortage completed but now my solicitor has said after all the drama that my mortage company might not accept the special conditions that my solicitor can't get the reciever to fix , tis is my 1st house so wanted to see if anyone had had these problems
    What special conditions specifically and why wont the receiver 'fix' them?

    Dependent upon what they are, they may be doing you a favour.


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    #43
    Copperk
    Registered Users Posts: 3 ✭Copperk


    makeorbrake wrote: »
    What special conditions specifically and why wont the receiver 'fix' them?


    Dependent upon what they are, they may be doing you a favour.
    they have ironed out most things but my solicitor is still very negative , I suggested my engineer get all sorted b4 she went to my bank but she said teres no point, but im sure plenty of people have bought receiver houses with a mortgage but she says there all cash buyers


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    #44
    makeorbrake
    Registered Users Posts: 4,664 ✭✭✭makeorbrake


    Copperk wrote: »
    they have ironed out most things but my solicitor is still very negative , I suggested my engineer get all sorted b4 she went to my bank but she said teres no point, but im sure plenty of people have bought receiver houses with a mortgage but she says there all cash buyers
    Find out what they actually are. It may be that there's no way you should be signing off on them anyway if they're not in your best interests.


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    #45
    Corinthcanal
    Registered Users Posts: 14 ✭Corinthcanal


    hadoken13 wrote: »
    There would be nothing to stop a person with an existing mortgage from buying a house in receivership. If you get approved for the mortgage then I can't see what the problem is. The seller won't care either way, although cash buyers would get preference - same with most properties.

    A mortgage is approved subject to the buyers solicitor a certificate of good and marketable title. Receivers generally can't and usually don't give good and marketable title.


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    #46
    Woodville56
    Closed Accounts Posts: 1,643 ✭✭✭Woodville56


    Found this article on Receiver Sales recently - may be helpful in explaining some of the issues to be negotiated in buying a property from a receiver

    http://buyersbroker.ie/blog/wp-content/uploads/2012/12/Receiver-sales-Barry-Rafferty.pdf


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    #47
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    TheDriver wrote: »
    Most receivers will want sales to go through and will prove all necessary parts of titles, including providing all documents supporting their position. If they cant, it should be in an allsop auction with all the other unsaleable rubbish

    In your dreams. Receivers are more concerned with not being sued that looking for documents. They can't say things they don't know such as whether or not there is any legal dispute in being regarding the property. What document could the receiver look for to answer that question?The buyer is just told to take what there is or leave it.


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    #48
    simpson80
    Registered Users Posts: 42 ✭simpson80


    Hey guys just wondering if any of you have completed receiver sales. sale agreed 3 months now and still haven't received contracts. anyone any experience of time frame??


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    #49
    whatawaster
    Registered Users Posts: 12,906 ✭✭✭✭whatawaster


    simpson80 wrote: »
    Hey guys just wondering if any of you have completed receiver sales. sale agreed 3 months now and still haven't received contracts. anyone any experience of time frame??

    Hey,

    We completed a receiver sale and it took four months in the end. To be fair, the last 2-3 weeks of that was my life/home insurance companies making a mess of things.

    The receiver in our case furnished details of title , planning etc almost upfront. The contract contained the usual receiver exclusions. At no stage did the bank question the fact the fact that it was a receiver sale


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    #50
    darklighter
    Registered Users Posts: 483 ✭✭darklighter


    simpson80 wrote: »
    Hey guys just wondering if any of you have completed receiver sales. sale agreed 3 months now and still haven't received contracts. anyone any experience of time frame??

    Mine took 8 months and only closed on the day mortgage approval ran out!!

    But a lot of that was my solicitor being very thorough


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    #51
    allibastor
    Closed Accounts Posts: 2,520 ✭✭✭allibastor


    Where did you buy a house in receivership from?

    Just curious as I am trying very unsuccessfully to buy a house but dealing with EA or sellers is a nightmare.


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    #52
    Sunny Dayz
    Registered Users Posts: 5,378 ✭✭✭Sunny Dayz


    From when the receiver was appointed to when we owed the house took 10 months.
    2 months to decide what we were going to do, look at other properties, deal with estate agent,
    2 months for offer to be accepted,
    1 month awaiting contract to be sent to our solicitor,
    4 months our poor solicitor spent going over a back to their lazy solicitor trying to get info and records from them like blood from a stone.
    1 month then to wrap things up, drawn down mortgage etc.
    Never again!


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    #53
    Woodville56
    Closed Accounts Posts: 1,643 ✭✭✭Woodville56


    From the experience of friends buying receivership properties, the timeline can be anything from 3-10 months , your conveyancing solicitor will earn his fee if he's doing his job properly on the conveyancing - loads of scrutiny required ! Good luck with it, just make sure you keep up to speed with your solicitors enquiries and interactions with the receiver's solicitor - can be very slow and confusing !


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    #54
    Victor
    Registered Users Posts: 78,402 ✭✭✭✭Victor


    allibastor wrote: »
    Where did you buy a house in receivership from?
    That may be inappropriate prying.

    Feel free not to answer.

    Moderator
    Just curious as I am trying very unsuccessfully to buy a house but dealing with EA or sellers is a nightmare.
    The 'seller' is likely losing their home. They are unlikely to be cooperative. The estate agent can't do much in that situation.


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    #55
    kelt21
    Registered Users Posts: 7 ✭kelt21


    Hi,
    Just to add my own experience and hopefully not going to scare too many people, think it was a once off. I put a deposit down on a house in a half finished estate three years ago. (The deposit is with a local auctioneer not the receivership company selling on behalf of the bank. So there was that security). 10 houses in total in the estate, 5 were sold for 550K to 650K during the boom. The last 5 remaining houses were been sold for 200k each. The sewage system had to be upgraded as planning was required to finish off 2 of the last 5 houses. This took the builder 1.5yrs to finish who was appointed by a project management group who were appointed by the solicitor company selling on behalf of the bank (all in different counties and all not too bothered that people wanted to move into their homes). Meanwhile the contracts were released for signing, the contract stated that if the builder owed any monies to any creditors (related and NOT related to the building of the estate) i.e. if the builder bought land on the other side of Ireland and still owed money they could come after me for the cash???? My solicitor never saw anything like this before or even heard about it. So my deposit is still with the auctioneer and I am going to ride it out as I am not in any rush. Has anyone else experienced something similar? It seems to me like they don’t want to sell these houses


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    #56
    Woodville56
    Closed Accounts Posts: 1,643 ✭✭✭Woodville56


    kelt21 wrote: »
    Hi,
    Just to add my own experience and hopefully not going to scare too many people, think it was a once off. I put a deposit down on a house in a half finished estate three years ago. (The deposit is with a local auctioneer not the receivership company selling on behalf of the bank. So there was that security). 10 houses in total in the estate, 5 were sold for 550K to 650K during the boom. The last 5 remaining houses were been sold for 200k each. The sewage system had to be upgraded as planning was required to finish off 2 of the last 5 houses. This took the builder 1.5yrs to finish who was appointed by a project management group who were appointed by the solicitor company selling on behalf of the bank (all in different counties and all not too bothered that people wanted to move into their homes). Meanwhile the contracts were released for signing, the contract stated that if the builder owed any monies to any creditors (related and NOT related to the building of the estate) i.e. if the builder bought land on the other side of Ireland and still owed money they could come after me for the cash???? My solicitor never saw anything like this before or even heard about it. So my deposit is still with the auctioneer and I am going to ride it out as I am not in any rush. Has anyone else experienced something similar? It seems to me like they don’t want to sell these houses

    A family member has a similar story - sale agreed and booking deposit paid Dec2013. Contract signed & balance deposit paid Jan 2015 ! Still waiting for closing date from Receiver - and they had the cheek to stipulate that unless the balance of the deposit was paid at 7 days notice the house would be put back on the market. Like you, my relative is prepared to play the long game and wait but it's just wholly unacceptable the way the EA/Receiver/ solicitor for Receiver have dealt with the matter. The delay has cost my relative another year 's renting ! He would have looked elsewhere had he any idea the sale would take so long - yes he knew it was a Receiver sale but he was assured at the time that the sale process would take 3-4 months max.at this point it's heading for 15 months ! There should better regulation of these type of sale - it's quite unfair the way Receivers/EA's can lead people onn in such cases !


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    #57
    Ms2011
    Registered Users Posts: 3,129 ✭✭✭Ms2011


    I put down our booking deposit in Nov 13, I'm finally signing the contracts on Thursday after 17 months waiting!!


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    #58
    Woodville56
    Closed Accounts Posts: 1,643 ✭✭✭Woodville56


    Ms2011 wrote: »
    I put down our booking deposit in Nov 13, I'm finally signing the contracts on Thursday after 17 months waiting!!

    Congratulations ! Persistence pays .... Eventually !


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    #59
    TheDriver
    Registered Users Posts: 12,500 ✭✭✭✭TheDriver


    I went to see a house in July and was assured receivor had everything in order and sale was straightforward. Dropped out in early Aug and we were last bidder to rival winner so went sale agreed. I pass it now and its empty, no sign of it on ppr and methinks a lot of hassle for someone


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    #60
    drunkmonkey
    Registered Users Posts: 28,192 ✭✭✭✭drunkmonkey


    Looking at a place at the moment, few houses in the estate for sale all around the same money, bids on 2 and none on the receiver one. All the same asking price.....not sure how to value it, is it worth 20% less?


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    #61
    Dolbhad
    Registered Users Posts: 782 ✭✭✭Dolbhad


    The law society issues practice notes for solicitors on their website. If you search law society of Ireland and receiver sales you see the issues the law society flag about the contracts. Generally advice I would say is don’t buy. Maybe in 2013 it was a bargain but not now. Long delays in closing it with every restrictive condition in place to ensure no comeback with receiver and extra legal costs and engineer costs on you to certify it’s in some order. In addition I’m sure your solicitor would have to raise it with the bank giving you a mortgage of the restrictions and bank could say no.


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