THIS WEEK’S debacle involving the collapse of Laragan Developments has generated a lot of sympathy for the many buyers who paid deposits on apartments to be built in Milners Square, Santry and in Carrickmines Green on the Glenamuck Road.

More than 90 people had paid deposits of between €15,000 and €20,000, but most of this money was paid over two years ago when property prices were substantially higher.

As prices plunged, particularly for apartments, many of the depositors attempted to pull out of the deal, or re-negotiate prices, but were told by Laragan that this wasn’t an option.

The liquidator, Paul McCann of Grant Thornton, did not win many friends when he suggested to depositors that they would receive a “substantial benefit” by being released from their contracts, to allow them to buy elsewhere at much reduced prices.

By all accounts the depositors have no intention of giving up their fight to get some of their money back, though some must be relieved that they are not now in even greater negative equity, which would inevitably have happened had they completed their purchase.

The Laragan case could be the tip of a very nasty iceberg, because of the sharp fall in new homes values – in many cases apartments have halved in value, particularly those in outlying locations.

Many of the people who bought these units off plans a year or more ago are now hoping to either get off the hook or renegotiate the price.

However, developers are saying that their hands are tied by the bank, and so they cannot discount as much as they would like and so some court cases are inevitable.