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GAZETTE
APRIL 1986
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
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.
A Number of Interest.
a
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V
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