Taylor Solicitors Cork

Taylor Solicitors Cork: The benefits of a Property Price Index

Posted on September 20, 2011 by Taylor Solicitors Cork

We hear it all the time… property

prices have dropped another X% in the last few months. And most people never stop and think about where this information is coming from and more importantly are these types of reports and statistics truly accurate? In a word – No.

Up until now Ireland has had no centralised accurate database of property prices. If you stop and think about it, it’s hard to believe. As a nation we have no clear record of what property around the country is actually selling for. Statistics you hear on the news generally relate to surveys carried out amongst auctioneers or on the basis of advertised property prices. But to be fair, these are far from hard and fast facts. As a result, prospective purchasers have largely been operating in an information vacuum. The price achieved for a purchaser comes down to negotiating skills and the relative strength of each party’s position.

In a major step forward in this area, Alan Shatter has stated he intends to expand the role of the Property Services Regulatory Authority to include publishing information on the sale of houses and apartments. This will include the property address, the sale price and the date it was sold. These provisions are to be included in the long awaited Property Services (Regulation) Bill. For people entering the property market, this will provide valuable information and could prove crucial when it comes to price negotiation. Likewise for sellers, it will encourage those placing property on the market to seek a realistic price from the get go. In my opinion this kind of information can only boost the market and increase activity.

On the flip side, as a nation we like our privacy…. We don’t want Mrs. Murphy down the road to know our business, let alone how much we raked in for that 3 bed semi. This right to privacy is protected in our constitution and in theory this new law could be deemed to be unconstitutional. Time will tell.

What is clear is that for too long hearsay and unreliable statistics have been a part of a culture fuelling the growth and subsequent demise of the Irish property market. Reliability, hard facts and figures are what this country needs.

Taylor Solicitor Cork

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To Fix or Not to Fix …. That is the Question

Posted on September 14, 2011 by Taylor Solicitors Cork

There is nothing quite like turning on the radio on the drive home from work, listening to Matt Cooper speak about the latest rise in interest rates and trying to figure out

what this means for you and your mortgage.

For the average person, it can seem like something completely removed from the reality of their personal circumstances; every few months the banking big wigs throw the dice to see which way interest rates will roll for the foreseeable future. And what we’ve seen in the last few months from many lenders has been an increase in rates while for many Irish people their finances have continued to deteriorate.

At Taylor Solicitors Cork, we are continually asked by clients buying property should they fix their mortgage interest rate. If I had a crystal ball, I’d be able to hand out this type of advice. But I can’t and in reality, no one can give you a definite picture of exactly where rates are going in the long term. Aside from this, different rates and terms will suit different people depending on their lifestyle and plans for the future.

Having said that, I do find there can be confusion over what these different rates mean. Generally, when you take out a mortgage you will be given the option of fixing your rate or taking a variable rate. What are known as “tracker rates” still feature in the market although for the most part banks aren’t offering tracker rates for new mortgages.

Fixed Rates
Virtually all lenders will give you the option of fixing your interest rate today, for a specified amount of time. This can be for any term from one year up to twenty years or more. For the most part, the longer term you choose to fix the rate, the higher the rate will be.

So why would you choose to fix your rate? The big advantage of fixing your mortgage interest rate is that you will know exactly how much repayments will cost you over the fixed term. Interest rates can go up or down throughout the term and this won’t affect your repayments as you will have locked in at a specific rate. For many people, this gives incredible peace of mind and allows them to budget their money more effectively.

The down side is that if the bank drops the variable or fixed rates in the future, you are tied to the higher rate. It’s important to note that fixed rates are less flexible than variable and tracker rates. For example, with a fixed rate you can’t make any additional payments or redeem the mortgage early without a penalty. These penalties can be quite substantial and are somewhat dependant on the length of time remaining in the fixed period.

Before you fix your rate or decide on the length of time to fix the rate, consider your future plans. Is there a possibility that you will change lenders, or decide to move house within the fixed period? If so you will end up paying penalty fees.

Variable & Tracker Rates
Variable and tracker rates are similar in that if general interest rates go up or down, the variable and trackers rates will go up or down accordingly. Tracker rates are tied into the European Central Bank (ECB) rate, and generally the bank’s tracker rate will be the ECB rate plus a percentage. This percentage is agreed at the outset of the mortgage and means that the lender can’t unilaterally decide to increase rates – rates increase only if the ECB raises their rates. In contrast, if you have a standard variable rate, the lenders can in theory raise the rate whenever they like. In the present market tracker rates remain low while for the most part, lenders have been increasing their variable rates. Unfortunately most banks have stopped offering trackers so for most people taking out their first mortgage variable or fixed are the main options.

As I said, you need to consider your own circumstances and the rates on offer before deciding what is right for you and your mortgage. When you are signing your mortgage documents your solicitor will explain the legal implications of both the mortgage and the rate you have chosen. If you don’t understand something, make sure you ask questions because at the end of the day your mortgage will be with you for many years to come.

Taylor Solicitors Cork

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Forgive me Banker for I have borrowed… debt forgiveness for homeowners

Posted on September 1, 2011 by Taylor Solicitors Cork

Debt forgiveness: a phrase constantly in the news these days. Figures released by the Central Bank this week show an increase in the number of homeowners in mortgage

arrears along with an increase in the number of people seeking to restructure their repayments. With another austere budget facing us later this year, it’s only a matter of time before thousands more join the ranks of those unable to meet their mortgage repayments.

In the last few days, Michael Noonan has pretty much ruled out an extensive debt forgiveness scheme for homeowners but he has indicated it is an issue that will be tackled. It remains to be seen how and when this will happen and in the meantime homeowners in difficulty don’t have time to wait for politicians to work out a solution to this ongoing problem. So let’s take a look at options that are available today.

Can I just hand my keys back to the bank and call it quits?

In a word, no. That’s not how mortgages or debt in general operates in Ireland. To put it simply, you can’t walk away from your mortgage. You are responsible for the full amount outstanding on your mortgage even when your house has fallen below this amount.

So what are my options if I can’t afford my repayments?

This is the situation facing many homeowners today. They can’t afford their repayments but they don’t have the option of selling their property because they owe more on their mortgage than the house is worth.

The worst thing you can do is to bury your head in the sand and hope it all goes away. Problems don’t solve themselves, they need action. If you do nothing, your situation is likely to get worse. If you are in arrears or think you will have difficulty making payments, you should contact your bank as soon as you can.

What are my rights?

Banks are obliged to follow statutory codes of conduct when dealing with people that are having difficulties paying their mortgages. These codes set out frameworks that lenders must use when dealing with borrowers in mortgage arrears or in pre-arrears. Lenders are required to deal with these cases sympathetically and positively, with the objective at all times of helping people to meet their mortgage obligations.

Your bank must contact you as soon as it becomes aware that your mortgage account is in arrears and they must also have a procedure in place for handling accounts which are in arrears.

It is important to be aware that if you continuously fall behind on repayments, and you ignore or don’t engage with your bank, the bank can start legal proceedings to recover the money lent to you and start proceedings to take back your house. Your bank cannot look for repossession of your home until every reasonable effort has been made to agree an alternative payment schedule.

What is an alternative payment schedule?

When you contact your bank, they will generally ask you to complete a financial review. Essentially, a financial review looks at what money you have coming in and what expenses you have going out. Both you and the bank need to determine what you can realistically afford to repay on a monthly basis. The bank may agree to restructure your loan in many ways. These may include:

Extending the term of your mortgage, which will reduce the amount of your monthly repayments
Changing your mortgage from capital and interest repayments to interest only
Postponing all or part of your mortgage repayments for a certain time frame to ease the immediate financial pressure on you.

Your bank is obliged to try to find a reasonable solution and a way forward. If you are unsure about what your bank is proposing or how the change in terms and conditions will affect you, contact your solicitor as it is important you understand your rights and the consequences of any proposed changes to your mortgage repayments.

Here at Taylor Solicitors Cork, our experience has been that many banks are actively engaging with their customers to find workable solutions. But you need to be assertive. If it’s a choice between meeting a mortgage repayment and feeding your family, time is of the essence and you simply don’t have weeks to wait for a bank to process your paperwork. Take the lead. Contact your bank or solicitor before there is a problem and get working on a solution.

Useful Links:

Money Advice and Budgeting Service (MABS) http://www.mabs.ie/

Guide to Dealing with Mortgage Repayment Difficulties

FLAC (the Free Legal Advice Centres) have published a useful set of guidelines on mortgage arrears (pdf)

Consumer Protection Code (pdf)

Taylor Solicitors Cork

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Eleanora Taylor talks maternity rights and the realities facing working mothers in Ireland

Posted on August 12, 2011 by Taylor Solicitors Cork

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Buying My First Home. Where Do I Start?

Posted on August 9, 2011 by Taylor Solicitors Cork

As Cork property solicitors, every day we meet clients planning to buy their first home. It’s a big step in life and an exciting time. Having said that, for someone takin

g the first step on the property ladder, there’s a lot to take in and a lot to do. To give you some guidance, we’ve set out a Step-By-Step guide to make the process a little less daunting.

Step 1: What’s my budget? How much can I afford?

Before you start looking at houses, you need to figure out your budget. This will depend on a number of factors including your savings, what you can afford to borrow and what monthly repayments you can afford.

Aside from the cost of your mortgage you need to allow for other costs associated with buying a house including legal fees, stamp duty, valuation fees, engineer’s fees and insurances.

You should shop around for the type of mortgage that suits you best. There are a wide variety of mortgages available and you should make sure you fully understand what’s on offer. It can be confusing! So make sure you ask the questions you need to ask so you know exactly what you’re getting. Remember you are the customer; you are the one that will be paying back this mortgage, so make sure you understand exactly what’s on offer.

Once your mortgage application has been successful, the bank will give you what’s known as “approval in principle.” This is a guide to how much the bank is willing to lend you. This gives you a better idea of your budget and what type of properties you can afford.

Throughout this step, it’s a good idea to touch base with your solicitor if you have any questions. There’s a lot to take in and you’ll come across a lot of banking and legal language you haven’t heard before. If you don’t understand something, ring your solicitor and ask her to explain it.

Step 2: Find your new home.

This is one of the most exciting parts of the process. Only you can decide which property will become “home.” Aside from your budget, you need to think about location – do you want to be close to family, friends, work? Do you prefer city living or would you rather look out the window at green fields? It’s a buyers’ market at the moment and this means for the first time buyer you have more choice and value for money than you would have had a few years ago.

Step 3: Making an offer and putting down your deposit

When you’ve found a house you want and can afford you make an offer and negotiate the price, usually through an auctioneer. Once you’ve agreed a price, you put down a deposit with the auctioneer. You should make sure this deposit is “subject to contract and title”. This means that if you don’t sign contracts, the deposit is fully refundable.

At this stage, you have a few things to get started on:

- You need to give the auctioneer the name and address of your solicitor. The auctioneer will then get in touch with the seller’s solicitor and ask them to send contracts to your solicitor.

- You should give your bank/mortgage advisor full details of the property and the name of your solicitor. The bank will then prepare the loan offer and post it out to your solicitor. At this stage you should also finalise all paperwork with the bank.

- You need to hire an engineer to carry out a survey of the property. Your solicitor may also give you more details on exactly what she wants the engineer to do aside from a structural survey of the property. This could include a planning search, checking the boundaries, checking rights of way etc.

- You need to arrange a valuation for the bank.

- You need to put in place your house insurance and life insurance.

Step 4: The legal process

The contracts and loan offer will be sent to your solicitor. Your solicitor’s job is to guide you through the legal process. This includes making sure you understand exactly what you’re buying and all of the obligations you have to the bank. Your solicitor carries out full investigation of the title to the property, requests your loan cheque from your bank and completes the purchase on your behalf. Your solicitor is there to ensure that all necessary registrations and legal work is completed to your satisfaction and in line with the bank’s requirements.

Step 5: Getting the keys

At last! Once you’ve got your keys, take time to celebrate! This is a big step in life and one that should be enjoyed.

By the time you get those keys, you’ll feel as if you’ve become an expert at navigating the home buyers’ market. But along the way, ask questions, get advice and make sure you understand exactly where you are each step of the way.

Taylor Solicitors Cork

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Breaking Up Is Hard To Do

Posted on August 4, 2011 by Taylor Solicitors Cork

You fall in love. You move in together. Life is great. You are one of approximately 120,000 people living together in Ireland. Up until earlier this year if your relationship ended, yourself and your ex were treated as effectively strangers in the eyes of the law. Neither party had any right to maintenance, support or inheritance from their ex. But all this has changed with the introduction of the Civil Partnership and Cohabitants Act 2010.

Under this new Act, a qualifying cohabitee can apply to the Courts for financial orders similar to those granted during a divorce or judicial separation.

To qualify as a “cohabitant” you must meet certain criteria:

- You must be one of two adults over 18 years of age (whether same or opposite sex)

- Living together in an intimate and committed relationship of cohabitation, who are not related within the prohibited degrees of relationship, or married, or civil partners of each other, and

- Immediately before the relationship ends, living together for at least five years. This is reduced to two years if they are parents of dependant children.

Once you qualify as a cohabitant, the Court will consider whether you are financially dependent and whether this financial dependence arises as a result of the relationship. For example, if you’ve been living with your partner for the last five years and you gave up your job to stay at home to look after your two young children, it is reasonable to expect a Court to deem you as financially dependent as a result of the relationship.

You could also argue that if you’ve been living with your partner for the last six years and been supporting them for the last two years since they lost their job, they fulfill the necessary criteria.

Once a cohabitant is deemed to be financially dependent, they can apply for an interest in property, maintenance, pension rights and seek to qualify for an inheritance. Any application to Court must be brought within two years of the time the relationship ends.

To be classed as “married,” a couple either takes a walk up the aisle or formalises their marriage with a Civil Ceremony. Action is required. In contrast, a couple that decides to move in together without any formal commitment will now have obligations forced upon them if their relationship continues for the required time periods. The key point here is that a couple does not have to actively do anything to avail of rights and obligations under this legislation.

The Act does allow couples to enter what’s known as a Cohabitants’ Agreement which is a legal agreement setting out rights in advance and is a form of protection. Drafting this type of agreement also allows couples to opt out of the redress scheme.

But for many people, suggesting what is effectively a “moving in pre-nup” would undoubtedly take the romance out of the moving in together process. In reality, most couples that move in together assume they’ve met “the one” and the implications of a break-up are far from their mind.

But be warned. At the very least, think carefully before shacking up because breaking-up just got a lot harder to do.

Taylor Solicitors Cork

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Phonecalls, email & your privacy: How protected are you?

Posted on July 19, 2011 by Taylor Solicitors Cork

Everywhere you turn recently you’re surrounded by news of the latest phone hacking scandal. When

a newspaper hacks into a person’s voicemail, there is no gray area. You don’t need to be a solicitor or have a legal background to know it’s wrong. Not just morally wrong, it’s against the law.

But it does bring up a broader question: under what circumstances can a business legally monitor someone’s electronic communications? This really struck me during the last few weeks… my brother recently proposed to his girlfriend and in the weeks running up to the proposal there was a stream of emails between my brother, sister and I referring to rings and diamonds. After a few back and forth emails I noticed that virtually all of the advertisements popping up on the side of the Gmail email conversation were referring to diamonds. Coincidence? Definitely not. Which encouraged me to review Google’s policy entitled Ads in Gmail and your personal data. Here you find lots of consumer friendly language completely in line with the trendy and hip Google image. Google’s articulated goal is to “provide Gmail users with ads that are useful and relevant to their interests.” How do they do this? To use their own example, if you’ve recently received several messages about photography or cameras, a deal from a local camera store might be interesting. And these are the type of ads that will appear when you’re using Gmail. Google seeks to assure users that “no humans read your email… ad targeting in Gmail is fully automated.”

Ok, some would argue that targeted ads do assist users. If you’ve been talking about diamonds, you might well be in the market for a sparkler. But let’s call a spade a spade. Google is a multi-billion dollar business. Targeted ads help their advertisers, which in turn generates revenue for Google. More money for Google, or do they really want to help you find that perfect engagement ring?

Without a doubt, as a Gmail user you’ve probably checked the box and agreed to all these terms of use. And this is not unique to Gmail. Most email providers scan emails to make advertising more effective and incorporate this policy into their terms of use.

This is an area of law that is governed by both Irish and European legislation. In the last month we have seen the introduction of several new electronic privacy regulations which include regulations in regards to what’s known as cookies. Cookies are small items of code that are placed on a user’s computer by a website. They are essential for a functioning web but they can also be used to monitor behaviour for the purpose of targeted advertising. Under the new regulations users must consent before cookies are placed on a user’s computer. Users must also be given clear information about the cookie and its purpose.

In reality, for most web users these regulations will not have any major impact. Most of us will continue to tick the box, click “I Agree” and move on to sending that email.

But it is something to consider before you start those conversations. Whether it’s a person or an automated scan, some form of Big Brother is definitely watching.

For more information on:

Ads in Gmail and your personal data: http://mail.google.com/support/bin/answer.py?answer=6603

Irish Cookie Regulations:

http://www.dataprotection.ie/documents/legal/SI336of2011.pdf

Taylor Solicitors Cork

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Eleanora Taylor weighs in on the realities of the property market.

Posted on July 11, 2011 by Taylor Solicitors Cork

http://thecorknews.ie/articles/cork-lots-go-down-treat-dublin-auction

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Vouchers: Not much of a gift if the company goes bust

Posted on June 21, 2011 by Taylor Solicitors Cork

Gift vouchers can seem like the perfect present. And a few years ago, no one would have thought twice about buying them. I know when I got married, vouchers seemed to be the gift of choice. And for many

months after my wedding, I spent Sunday afternoons wandering around Meadows & Bryne picking out the latest kitchen gadgets. Back in the boom, it would never have dawned on most people to worry about the value of vouchers should a business go into liquidation.

But this is the reality of the times we now face. Businesses that appear to be trading on a Monday can have closed up shop by Tuesday. At Taylor Solicitors Cork, we see many incidents of people left holding vouchers for everything from facials to flying lessons when a company goes bust.

What are my rights?

Unfortunately, consumers have very limited rights when a company goes out of business. Where a consumer has paid for a voucher but hasn’t used it, they are unlikely to have their voucher payment refunded.

Generally, when a company goes out of business they have racked up numerous debts to a variety of creditors. Under the liquidation process, creditors known as “secured creditors” such as banks and “preferential creditors” such as employees and the Revenue are given priority: i.e. they get paid first. The consumer who has purchased a gift voucher is known as an “unsecured creditor” and ranks in priority after the “secured” and “preferential” creditors. In many liquidation cases, there simply isn’t enough money to pay “secured” and “preferential” creditors, let alone anyone else. The reality is that in most liquidation cases, the ordinary consumer who has purchased a gift voucher is unlikely to get any refund or compensation.

If I’m buying a gift voucher, what precautions can I take?

- If you buy or receive a gift voucher, don’t let it sit in the bottom drawer for months on end. Use it as soon as possible.

- Before you buy a voucher, think about who you’re buying it from…. Does the business look like it’s trading successfully or are there “Closing Down Sale!!” signs plastered around the shop. Use some common sense.

- Think carefully about the amount you spend on a voucher. Consider the risk of buying a €50 versus €500 voucher.

- If possible, pay for the voucher by debit or credit card. In some circumstances if you’ve paid for the voucher by credit or debit card you may be able to claim against the retailer under the payment card processing rules. You should contact your card provider to find out if this is possible in your particular case. In contrast, if you pay by cash, you will have no comeback under these rules.

Remember, each situation can be different. Depending on the particular circumstances surrounding the purchase of your voucher, you may have other options. In a situation where you’ve spent a large amount of money on the voucher, it may be worth your while to contact your solicitor and get legal advice specific to your situation to see if you have any other options.

Taylor Solicitors Cork

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Cancelled Flights… Know Your Rights.

Posted on June 8, 2011 by Taylor Solicitors Cork

Flight cancellation is increasingly becoming a reality for travelers. You’ve packed your bag, topped up the fake tan and arrived at the airport to find that the latest Icelandic

volcano eruption is bringing your holiday plans to a halt. Your flight has been cancelled. Where do you stand?

The relevant law in this area is European Regulation 261. Under this Regulation, if your flight has been cancelled, airlines must offer you a full refund or re-routing on the next available flight.

If you opt to take the next available flight, the airline must provide accommodation and refreshment until you can be accommodated on the next flight.

There is an important distinction made between “reimbursement” and “compensation.” Passengers are only entitled to seek compensation where the flight cancellation is due to a fault of the airline. In the case of weather disruptions or in this instance, volcanic ash disruptions, these are deemed to be “acts of God” and essentially outside the control of the airline. In these cases, passengers are not entitled to compensation, but can look for reimbursement of reasonable expenses.

As you would expect, determining what constitutes “reasonable expenses” can be debatable. But use common sense. Checking into a five star hotel and racking up bills for facials and manicures is unlikely to be seen as “reasonable.” It’s also important to be aware, that in many instances you bear the cost of these expenses and then submit receipts to your airline for reimbursement.

You should send copies of all documentation and receipts to your airline. If you are unable to resolve matters with your airline, you have the option of contacting the aviation regulator or contact your solicitor for more information.

Finally, when a flight is cancelled for whatever reason, airlines are obliged to provide information in relation to your legal rights and obligations. So if you’re at the airport when the flight gets cancelled, ask for full details of your rights.

Taylor Solicitors Cork

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