Dublin Solicitor Michael Lynn was brought before the High Court in Ireland on charges that he used clients’ money to purchase overseas property and draw down some €26 million in loans, according to news reports. Mr. Lynn was the solicitor for Proper T Capel and Kendar Holdings Ltd. and owned over 100 properties, with some 40 in Slovakia, Bulgaria, China, Spain, England and Dubai.
The Law Society authorized an investigation into the accounts of the firm and found the books to be totally unreliable.
Mr Lynn also operated under the name of Overseas Property Law. For a fee, the firm would produce a report on a property abroad. If a person decided to buy that property, then the purchase money was often passed through the client account of Mr Lynn, according to one report.
The problems associated with Mr. Lynn and purchasing overseas property, unfortunately, are not new. While Mr. Lynn’s firm seemed to be vetting property, it was really just a front to get clients’ money.
The International Developer Information Pack, or IDIP, is one solution to problems that investors may run into. While nobody can foresee every problem or eventuality, an IDIP makes the process easier. IDIPs are provided by an international team of lawyers who have no vested interest in the properties. They don’t make money when it is purchased or sold and they aren’t trying to convince buyers to get something they shouldn’t. Their job is simply to find out as much information about the developer and property as possible. That information is provided to the buyer and then the decision is in their hands.
CEO Overseas Property Portal Homesgofast.com ‘Some overseas property buyers are using IDIP as an independent legal health check made by local lawyers overseen by another set of lawyers in the UK. It is one way to help international investors avoid schemes like those that set up by people like Mr. Lynn. Increasingly overseas property developers are taken the initiative and are undergoing the independent checks themselves.’
Due Diligence has been an issue concerning the UK overseas property industry. A recent feature in the industry magazine OPP- Overseas Property Professional saw Lawyer John Howell explaining the due diligence process. In his article he explains that he has had a steady trickle of calls from agents and developers about the subject. He also explains that there will shortly be a European code of practice making it clear that agents should check out developments before they offer them for sale.
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