Legal Question in Credit and Debt Law in Ireland
outstanding home loan debt
my parents passed away 10 years ago. recently the local council have sent letters regarding an outstanding loan on the house, which we did not know about. the loan was taken out in 1999 and no repayments have been made since, thus a large amount of interest has accrued on the original loan. the original mortgage for the house was paid off circa 1995 and i believe no other debt has been put against the house, however we are unsure whether this 1999 loan was put against the house. the house remains in my parents names, however we are in the process of changing it to myself and my siblings names. it has been our permanent place of residence since parents deaths. where do i stand with the council, in that they are looking for payment of the loan now, will i be held accountable for the loan.
1 Answer from Attorneys
outstanding home loan debt
Hi
Many thanks for your query.
1. You should request the Council to provide you with all documentation it holds in relation to the 1999 loan.
2. You could lodge a request under the FOI Act, under which the Council is legally obliged to release these 1999 loan records.
3. You could also request your parents' solicitors who acted at the time of the 1999 loan to provide these records.
4. The reason you need to obtain these records is to ascertain the terms and conditions for repayment of the 1999 loan.
5. You should check the title deeds for the house.
6. You should carry out an up to date search in the PRA to ascertain if the 1999 loan was registered on the house.
7. I can carry out this search if you send me details of the title/folio for the house.
8. You should confirm if both of your parents Estates were administered by issuing a Grant of Probate / Administration.
9. The statute of limitations in Ireland for recoverying a debt is 6 years from the date of breach of contract (in contract) or 12 years from the date of breach of a deed.
10. The staute of limitations in Ireland for creditors (including the Council) making a claim against the Estate of your deceased parents is 2 years from their date of death.
11. I would need to review the 1999 loan documents before I could advise definitively.
12. If a mortgage/charge WAS NOT registered on the house and/or was not granted by deed, the Council are most probably statute barred from suing to recover the 1999 loan from your parent's Estate.
13. If a mortgage/charge WAS registered on the house, this mortgage/charge could encumber your beneficial interest in the house.
I trust the foregoing sheds some light on the issues raised. Please note this email should not be relied on as legal advice. I would advise you to discuss the matter with me further to obtain proper legal advice. Please do not hesitate to contact me.
Best regards
Seamus
SEAMUS MONAGHAN & CO
Solicitors
Teeling Street
Sligo
Ireland
T: +353 71 9138572
F: +353 71 9138573
W: www.sligo-solicitor.com
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