This week: buying with friends and and radon gas

Buying with a friend

Last October I agreed to buy a new apartment with a friend. We paid a €5,000 booking deposit and then four weeks later we paid €15,000 as a contract deposit. The apartment will be ready in June of this year. However, my friend has now backed out of the deal for various reasons. I cannot go through with the sale as I would not qualify for the mortgage on my own. I contacted the estate agent to enquire about getting our deposits back and was told that they are now legally binding and, if we do not go through with the sale, we will lose everything. Is there anything we can do?

The €5,000 booking deposit you paid was just that, a deposit that put your name after an apartment number on a plan. It wasn't legally binding and you could have asked for it back at any time up to the signing of the other contract. It would have been returned to you without any quibble. However, the second deposit you paid and the papers you signed were very different - they committed you to going through with the sale. Many buyers find this situation a little unreal, especially when they are buying off the plans and when the actual date of completion is so far away. However, the commitment you made by signing the second contract is very real. It does happen from time-to-time and for a whole variety of reasons that people back out of a sale and the best thing to do is throw yourself at the mercy of the builder. The estate agent is basically out of the equation now, their job is done once they persuade you to buy in the first place - everything now is between you and the builder. You'll notice the cheque you paid was made out to him. Get your solicitor to write to the builder outlining your case in the most pleading way possible. The builder is under no obligation to let you out of the contract but it is in his gift to do so. The cases where the builder turns out to be most obliging tend to be where the development has already appreciated in value - he can then sell on your apartment with at a bigger price. Where a buyer is let out of a contract it's fairly usual (although there is no rule about it as he is essentially doing you a favour) for the builder to deduct a fee to compensate him for the cost of the paperwork. Your case is an example to others. With deposits being small, relative to the price of the property, there will always be cases like yours - where people did not think through what they were about to do. It also makes a good case for friends or non-marrieds drawing up a co-ownership agreement before they put down the booking deposit. If you both end up losing the deposit through no fault of yours, you may want to get legal advice on a potential claim against your friend - if you want to go down that road.

Finding out about radon

How do I find out about the Radon levels in my house?

This question comes up every time radon gas is in the news - an indication perhaps that it is time for a major information campaign. The Radiological Protection Institute of Ireland is the organisation charged with monitoring exposure to radon in different areas of the country and it has an excellent, jargon-free website at www.rpii.ie/radon.

Send your queries to Property Questions, The Irish Times, 10-16 D'Olier Street, Dublin 2 or e-mail propertyquestions@irish-times.ie.

Unfortunately, it is not possible to respond to all questions. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.