IRISH housebuyers who are trying to pull out of purchases because of falling property values are being taken to court by builders and developers.

Construction companies say they have been forced into legal action to secure sales that were agreed when the properties were valued at up to €100,000 more than they are now.

In the last month the Hanly Group, one of the country’s biggest developers, has lodged 20 High Court cases against homebuyers who signed contracts and paid deposits for properties but now want to walk away.

In Carrickmines Green in Dublin, one of the developments over which Hanly has taken buyers to court, one-bed apartments went on sale from €375,000 last year. Last week they were advertised at €275,000.

House prices have dropped by 14% nationally since their peak in February 2007, according to the latest Permanent TSB/ESRI index.

Industry sources say while developers might have refunded deposits in the past, they are now determined to enforce contracts.

The Hanly Group said: “The vast majority of purchasers are closing their properties in line with their contractual obligations. There are, however, some customers who are not living up to their contractual responsibilities and where this situation arises the Hanly Group is pursuing legal action to have such contractual obligations enforced.”

The company said it would attempt to reach an agreement with customers experiencing financial difficulties.

If the developers are successful in court and the buyer cannot complete the purchase, the builders can sell the property on the open market. The customer forfeits the deposit and will be liable for the shortfall from the original price.

Hubert Fitzpatrick, the director of housing services at the Construction Industry Federation, said developers were forced to take legal action. “If this was the other way round and the properties were worth far more than the initial agreed price, then you wouldn’t see the developer pulling out.”

Ken MacDonald, the managing director of the estate agent Hooke and MacDonald, said: “Sometimes by starting legal action it brings people to the table and then a compromise price can be agreed. If people can’t afford to go through with a deal they should let the developer know, so something can be sorted.”

More than 30 cases have been lodged in the High Court in recent weeks by Creywell Developments and Rosslare Developments, both from Co Wexford; Liam Campion, who built controversial houses near the Rock of Cashel; and the owners of the Farnham Estate in Cavan.

None of the defendants contacted by The Sunday Times were willing to talk. One woman who has paid a €15,000 deposit on an unbuilt Hanly apartment, which she says is overdue by a year, claimed she had tried to cancel her contract but was refused.

Hanly said all its cases concerned completed apartments.

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