Mersey property vendor shut down

A MERSEYSIDE-based company which obtained payment from would-be property buyers on the basis of false representations has been wound up in the public interest.

Modo Homes, which operated from the Cenrix@Connect Business Village off Derby Road, has been wound up following a probe by the Companies Investigation Unit of the Insolvency Service.

It was found that Modo Homes operated an investment business by claiming it was authorised to offer properties for sale on behalf of lenders disposing of distressed properties. It required investors to pay a reservation fee for a particular property before they could see it.

However, the investigation found the company misled investors and failed to provide the service represented.

It insisted investors paid out the reservation fee before releasing address details, which meant investors could not carry out their own due diligence until after handing over the fee. It also failed to inform investors that the fee was non-refundable until it had been paid. It also collected multiple reservation fees for the same property and marketed properties without the permission of the relevant owners.

The company, which is estimated to have received over £450,000 from customers, also failed to keep accounting records and provided no evidence that any of its investors had been able to progress property deals to completion.

Commenting on the case, Investigation Supervisor Colin Cronin said: “Modo Homes Group raised money from investors on false representations and then made it very difficult for investors to contact the company to progress the property purchase.

“These proceedings show that the Insolvency Service will take firm action against companies and directors which operate in this way.”