Fund Halts €695,000 House Sale – Irish Times
- A fund, Pepper Finance Corporation (ireland), has obtained interim orders from the High Court restraining the €695,000 sale of a house in Clifden, Co.
- Pepper Finance alleges a potential fraud related to the property's ownership and the recording of their mortgage security interest.
- The dispute revolves around the proper registration of pepper finance's mortgage security interest on the property folio. pepper's solicitor, ciarán Leavy of Lavelle Partners, argues that if Peter...
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High Court Restrains Sale of Galway House Amid Mortgage Concerns
Table of Contents
What Happened?
A fund, Pepper Finance Corporation (ireland), has obtained interim orders from the High Court restraining the €695,000 sale of a house in Clifden, Co. Galway. The orders were secured on Monday, October 21st, 2024, due to urgent concerns that the property was about to be sold.
Pepper Finance alleges a potential fraud related to the property’s ownership and the recording of their mortgage security interest. The concern centers around a transfer deed from October 2024 that appears to show the property being transferred from Fr.Nicholas Dempsey to Kenneth McDonagh, rather than from the original owner, Peter O’Toole, to Mr. McDonagh.
The Core of the Dispute: Ownership and Mortgage Security
The dispute revolves around the proper registration of pepper finance’s mortgage security interest on the property folio. pepper’s solicitor, ciarán Leavy of Lavelle Partners, argues that if Peter O’Toole transferred the property to Kenneth McDonagh without noting or registering Pepper’s mortgage, it constitutes a fraud against Pepper.
The court heard that the October 2024 transfer deed raises questions about its authenticity, as it indicates a transfer from Fr. nicholas Dempsey to Mr. McDonagh, rather than from Mr. O’Toole. Investigating the deed’s authenticity is crucial to determine if a fraudulent transfer or a mistake on the property folio occurred.
Timeline of Ownership
| Date | Owner |
|---|---|
| November 21st, 1996 | Jack Connolly & Fr. Nicholas Dempsey |
| October 11th, 2006 | Peter O’Toole (mortgage from IIB Homeloans) |
| october 2024 | Kenneth McDonagh (alleged transfer) |
Who is Affected?
- Pepper Finance Corporation (Ireland): The lender seeking to protect its mortgage security interest.
- Kenneth McDonagh: The individual who recently acquired ownership of the property, subject to the restraining orders.
- Peter O’Toole: The previous owner who allegedly transferred the property.
- Fr. Nicholas Dempsey: A previous owner of the property, whose name appears on the original registration.
- Potential Purchaser: The individual or entity intending to purchase the property; the orders require details about their identity if the sale has already occurred.
Legal Proceedings and Court Orders
Mr. Justice Brian Cregan described the situation as “quite an imbroglio” and granted interim orders ex parte (meaning only Pepper was represented in court) against both Mr. McDonagh and Mr. O’Toole. These orders restrain any sale or dealings with the property at Heather Hill, Sky Road, Clifden.
The case is scheduled to