We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Paid deposit for off-plan and cannot complete...HELP!
Options
Comments
-
No words of wisdom Im afraid, I just feel so sorry for people who have been caught in this trap. I wonder if you could all get together and contact something like Watchdog or Money mail, in case they could help?0
-
I am not a lawyer, but FWIW in my view these contracts are 'unfair', as they allow the developer to delay the completion date to suit themselves. By unfair, I mean in terms of the Unfair Contract Terms Act 1977. I strongly suggest getting together with anyone else you can find who is in the same position to launch a group action. (Try searching on these forums and send a PM to anyone else you find.) You have two targets:
a) The developers - suing them under the Act I have mentioned (but beware this Act has not been used in these circumstances), and
b) The solicitors who acted for you - suing them for failing to advise you how toxic these contracts are (probably a much softer target).
I would be very interested to know if you find anyone else to participate in such an action - please feel free to PM me.No reliance should be placed on the above! Absolutely none, do you hear?0 -
I am not a lawyer, but FWIW in my view these contracts are 'unfair', as they allow the developer to delay the completion date to suit themselves. By unfair, I mean in terms of the Unfair Contract Terms Act 1977. I strongly suggest getting together with anyone else you can find who is in the same position to launch a group action. (Try searching on these forums and send a PM to anyone else you find.) You have two targets:
a) The developers - suing them under the Act I have mentioned (but beware this Act has not been used in these circumstances), and
b) The solicitors who acted for you - suing them for failing to advise you how toxic these contracts are (probably a much softer target).
I would be very interested to know if you find anyone else to participate in such an action - please feel free to PM me.
Thanks for the information. It looks like the Unfair Contract act 1977 may not be applicable in Scotland. I could easily be wrong. Very easily
If it is applicable I would seriously consider action.0 -
It looks like the Unfair Contract act 1977 may not be applicable in Scotland.
It is applicable. However, the act it isn't about unfair contracts, it's about unfair exemption clauses in contracts. You'd really need to take a good look at what your contract says. Some clauses are void and some are subject to a fair and reasonable test. Get proper legal advice
0 -
GRRR!
Anyone keep The Times? If not I am going to have to search out the paper bin!
One of the following:
friday 10/10 Bricks and Morter;
saturday 11/10 property section;
sunday 12/10 Homes section;
legal answers (or some such heading)on p2 or p4 bottom LHS of the page, a whole legal expert answer on legal redress in this situation, with quoted cases.
Can't find it on Times online.
It suggested that there had only been one or two cases where the builder had been ordered to refund the deposit. Most of the time the buyer would lose their deposit as the forfeit for breaching contract. It didn't mention the rights of the builder to the difference between the contract price and the price achieved from the next buyer.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
GRRR - our recycling has just been collected! I'll have a look and see whether we were a bit slow putting it in the box.No reliance should be placed on the above! Absolutely none, do you hear?0
-
Ok found it!
http://property.timesonline.co.uk/tol/life_and_style/property/article4913206.ece
Applies to England and Wales only.
If buyer doesn't complete, the seller can end the contract and buyer forfeits deposit.
Statutory protection for the buyer relies on section 49 of the Law of Property Act 1925 which gives the court the power to order the repayment of the deposit.
According to the barrister who wrote the article, the default position is always that if you do not pay the balance of the purchase price you lose your deposit.
There is no mention of the buyer having further liabilities.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I bought a new build in scotland, and have just found out today that I have managed to get out of the missives. My only penalty is losing the deposit, which is fine! i cant see how any builder can take someone to court on this, my advise would be write them a letter directly and see what they say - it worked for us!0
-
dragonology wrote: »Hi
I am in Scotland. I paid a deposit 3 years ago on a flat that was being built and should have been ready 18 months ago.
The flat is now nearing completion and I am unable to raise a mortgage now due to the credit crunch :eek:
When you paid your deposit 3 years ago, was there anything in the contract that you (and they) signed that stated it WOULD be finished by a certain date, with a get out clause for completion after this date?Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
I am an English solicitor so I may well be wrong on this but I would have expected your solicitor to have given you some warning of the risks of proceeding without being completely certain that mortgage finance would be available. Quite apart from issues about property prices there could be changes in lender's policies about borrowers' status, loan to value ratios, etc, etc.
If the risk factors were not explained to you, then possibly the solicitor might have been negligent, so it is worth checking eactly what advice you were given before you became legally committed.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards