The Gazette 1986

APRIL 1986

GAZETTE

Deposits on New Residential Properties THE DUBLIN SOLICITORS BAR ASSOC IA TION HAS ASKED US TO PUBLISH THE FOLLOWING PRESS RELEASE AND ENSUING CORRESPONDENCE. Your Bar Association has been pressing the Construc- tion Industry Federation, to introduce deposit protection to Purchasers paying deposits to Builders on foot of building contracts. In the absence of a satisfactory bonding scheme for deposits, the Bar Association recommend to their members, that they advise clients strongly not to pay deposits to builders but that the deposit should be paid to the Builders Solicitor as stake-holder. This recommendation follows the result of recent High Court cases when Courts ended up having to choose which innocent parties to the transactions were to bear the loss of the deposits the builders having gone into liquidation. In two cases the purchaser's solicitor was held responsible. The Council sees this as a totally unaccept- able risk and accordingly makes this recommendation. While it appreciates the effect this may have on the Building Industry, the extention of the Guarantee Scheme to include the bonding of deposits would solve the problem quite simply.

Ms. Elma Lynch, President, Dublin Solicitors Bar Association, 13 Westmoreland Street, Dublin 2.

3rd March, 1986

Dear Ms. Lynch,

Re: Bonding of Deposits Thank you for your letter and enclosure of the 27th February concerning the above matter the contents which I have noted. In view of the wide ranging discussions which we held with representatives of your Association I am at a loss to understand how your statement can conclude that "the extension of the Guarantee Scheme to include the bond- ing of deposits would solve the problem quite simply". If it is that simple I would suggest that the Association consider setting up its own bonding scheme. I would be pleased to acquaint you and your colleagues with the various aspects of this issue should you so desire.

Yours sincerely, Michael Greene, Director. Construction Industry Federation, Canal Road, Dublin 6.

Mr. Michael Green, Construction Industry Federation, Federation House, Canal Road, Dublin 6.

27th February, 1986

A Number of Interest. a For Top Rate Interest on your Deposit — Call Des Whyte. V City of Dublin Bank pic. The Alternative Dank. Lower Merrion St., Dublin.

Re: Bonding of Deposits

Dear Mr. Green, For some time past, our Association has been request- ing the Construction Industry Federation to introduce a scheme of bonding for the deposits paid to builders by purchasers of residential properties. Your Federation has felt it unnecessary to introduce this scheme, and accordingly my Council has been obliged to further consider the matter, and issue the enclosed recommendation to our members. The protection offered to purchasers in a scheme of bonding, would be complete, and enable our profession to advise purchasers to allow the release of deposits paid, to the builder. I remain, Yours sincerely, Elma Lynch, President Dublin Solicitors Bar Association.

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