Property Law – all conveyancers should be aware of the recent case of Wallace v Rowley. It appears that GCond 5(c) ie that the contract deposit was held (by the Vendor’s solicitor) as trustee for the Purchaser did not apply as the contract had not become binding and the Purchasers Solicitor had not set out any basis on which the deposit was being paid over. The Liquidator was successful if his claim that the contract deposit was received by Vendor’s solicitor as agent of the Vendor company and that therefore the purchaser had a claim to the deposit only as an unsecured creditor in the Liquidation.

Niall Colgan is a Solicitor based in Cork City, Ireland with 10 years experience

Mar 5, 13