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Government approves bill to protect homeowners facing possession orders

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Justice Minister Charlie Flanagan
Justice Minister Charlie Flanagan

The Government has approved the drafting of legislation to provide further protections for homeowners facing possession orders.

The Courts and Land and Conveyancing Law Reform Bill 2018 amends the Land and Conveyancing Law Reform Act 2013 to address situations where a borrower is unavailable to avail of an insolvency remedy under the 2013 Act.

The bill provides that the court, when considering an application for a possession order in such a case, must give regard to:

  • the overall proportionality of the application for a repossession order;

  • the circumstances of those resident in the property;

  • the details of, and responses to, any proposals put forward by either party which would enable the borrower to remain in the property, including participation in a Government scheme for distressed mortgage holders (for example, the Mortgage to Rent Scheme or the Abhaile scheme); and

  • where the mortgagee is not the original mortgagee that granted the loan or mortgage to the mortgagor, the amount paid for the purchase of the loan or mortgage by reference to the amount of debt outstanding in respect of the loan or mortgage.

    • Justice Minister Charlie Flanagan said the bill “has its genesis” in the Keeping People in their Homes Bill introduced to the Dáil by his Cabinet colleague Kevin ‘Boxer’ Moran.

    Mr Flanagan added: “A lot of work has taken place to ensure that Minister Moran’s proposals to provide additional protections to those who may be faced with repossession proceedings, can be compatible with the Constitution. I want to thank Minister Moran for working with my officials over the last number of months.”

    Minister Kevin ‘Boxer’ Moran said: “The proposed Bill reflects the Government’s resolve in addressing the issue of mortgage arrears and it now offers the Courts the opportunity to assess possession orders on a proportionality basis as set out in EU law.

    “This legislation is very important to me and I am pleased that Cabinet has approved drafting today. I look forward to seeing this Bill on the statute books as a further protection for those facing repossession orders.”

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