Supervision Standard – Summer 2024

Submissions of proposals on heritage (Appendix L)

All proposals for action on heritage should be submitted on BASYS along with an up-to-date property search, redemption from secured lender and valuation carried out by an independent chartered surveyor. These documents will not be accepted if they are over one year old. 

Third party buy out agreements

If the trustee is proposing to agree to a third party buy out, an agreement should be drawn up and signed by the third party setting out the terms of the agreement. This should include the term of the agreement, the frequency of payments, and the consequences of missed payments or not adhering to the agreement. For instance, if three payments are missed, the agreement will be void and the trustee will seek agreement from the AiB to take action on the property.

A copy of the agreement should be uploaded to BASYS when submitting the proposal for agreement.

A template buy-out interest agreement can be provided on request by contacting the Trustee Supervision Team.

Seeking agreement to accept reduced equity in property

If trustees are seeking agreement from creditors to accept a reduction in the equity available, every effort should be made to ensure the creditor receives the correspondence, including a recorded delivery letter and evidence of receipt recorded in the trustee’s case files.

Trustees should ensure creditors are made aware of the equity available, the reason for the trustee looking to accept the reduced offer and the dividend prospects of doing so. 

Please refer to section 10 of the AiBs Notes for Guidance for further information.