Depositors 'may' get apartments

Buyers facing the loss of thousands of euro worth of deposits after a prominent property firm collapsed may still get their apartments.

Laragan Developers, the firm behind the development of apartments in Santry, north Dublin and in Carrickmines, south Dublin has been placed in examinership with the result that buyers who had put down €15,000 or €20,000 to secure apartments will lose their deposit.

There is a provision under the Homebond scheme that provides some protection for deposits, but that protection only lasts for 24 months and those who had put deposits on Laragan apartments had paid for them more than two years ago.

However The Irish Timesunderstands that the troubled company has sought to make completed apartments available in both the Carrickmines and Milners Square developments to affected homebuyers. The cost of the apartment at today's market value will be offset against their initial deposit. This is believed to be less than under their original contract agreements.

Close to 100 buyers are affected by the failure of Laragan Developments. Many were left angered after examiner Paul McCann of Grant Thornton, who has been appointed by the High Court to produce a proposal dealing with the company's creditors, suggested that alsthough those who had put deposits on the properties would "suffer an immediate impairment", they would also benefit substantially as they would be released from their contracts and could buy elsewhere at a "substantial discount" in the current market.

Laragan Developments issued a brief statement this afternoon confirming that discussions with creditors were ongoing, but refused to comment further.

"Laragan Developments, can confirm that a series of creditors meetings are currently taking place as part of the formal examinership process," the company said in a statement. "It would be inappropriate for the company to make any comment that would prejudice our position in terms of this process."

Opposition parties today called on the Government to introduce stricter legislation to protect homebuyers following the collapse of Laragan Developers.

Fine Gael said today that the homebuyers should be fully compensated.

"Laragan Developments must be held to account to repay in full deposits to homebuyers. I am aware that Laragan will have a long list of creditors but these depositors must surely be top of the list when it comes to payment," said the party's housing spokesman Terence Flanagan.

"It is totally unacceptable that no insurance was put in place to protect these homebuyers. Laragan must now be forced to sell off all assets and use this money to repay all homebuyers affected," he added.

The Labour Party said the collapse of Laragan showed that there is an urgent need for new legislation that will protect homebuyers.

"It seems that certainly in the case of Largan Developments, depositors are placed firmly at the bottom of list when it comes recovering their losses," said the party's housing spokesman Ciaran Lynch.

"The attitude of the examiner in the case must be grossly offensive to those homebuyers who now stand to lose massive sums of money. He seems to be suggesting that these people are not really out of pocket at all, because property prices have dropped in the meantime. It is hard to imagine a logic that is more warped and a sentiment that is more insensitive than that," he added.