Can't sell flat, signed missives for new house

lp1_2 · 8 July 2008 at 10:42PM

In June 2007 I reserved a new home. It was to be built between November 2007 and February 2008. We have now been given a completion date of August 2008. I presently own a flat and could not put it on the market until a few months ago due to these changing completion dates. Due to the economic situation we are experiencing at the moment it looks like I will be unable to sell my flat (I reduced the price and never had a viewer). If the original dates had been honoured by the house builder I would have sold my property easily. I need the money from my flat to pay for my new house. As I have signed the missives, the house builder has said that they will sue us if we don't buy the house. I feel that this is very unfair as they have caused this situation. Had I known last year that the house would be 10 months delayed and the housing market would be in such a state I would never have reserved this house. Do I have any case against paying this compensation as it would leave me financially struggling.

SouthCoast · 8 July 2008 at 11:21PM

Have you discussed the situation with the solicitor who advised you to sign the missives?

lp1_2 · 9 July 2008 at 6:52PM

Yes both the solicitor and builders have been very unhelpful. Builders say to speak to the solicitors, solictiors say speak to the builder. So far the builders have refused to take our flat as a part exchange. The only information the solicitor came back with was that we would be liable for all costs incurred by the builder for them to resell (marketing costs, any shortfall in price, etc...) if we fail to complete. Are other option was to get a bridging loan to complete then sell the property on ourselves. Seems like we are in a loose loose situation at the moment, all caused by the builder delaying the property. I think I'll be looking for a new solicitor very shortly.

NELBHOY · 9 July 2008 at 8:40PM

lp1, I'm in a very similar situation to you. The company I'm dealing with is Persimmon Partnerships, who are threatening to charge me £50 a day for re-marketing the property, and any other additional charges. This could result in tens of thousands of pounds according to my lawyer(check out my post). I've even sent an email to the Sunday Mail Judge to see if there is a way out (will let you know of outcome).
I will let you know of any developments because if we can find a way out I'm sure you can. Chin up mate!

barnaby-bear · 9 July 2008 at 9:34PM

lp1 wrote: »

In June 2007 I reserved a new home. It was to be built between November 2007 and February 2008. We have now been given a completion date of August 2008. I presently own a flat and could not put it on the market until a few months ago due to these changing completion dates. Due to the economic situation we are experiencing at the moment it looks like I will be unable to sell my flat (I reduced the price and never had a viewer). If the original dates had been honoured by the house builder I would have sold my property easily. I need the money from my flat to pay for my new house. As I have signed the missives, the house builder has said that they will sue us if we don't buy the house. I feel that this is very unfair as they have caused this situation. Had I known last year that the house would be 10 months delayed and the housing market would be in such a state I would never have reserved this house. Do I have any case against paying this compensation as it would leave me financially struggling.

It seems Persimmon have loads of you tied into the Scottish system...
http://forums.moneysavingexpert.com/showthread.html?t=937587&highlight=persimmon
"Catastrophic" was this one...

lp1_2 · 9 July 2008 at 10:32PM

Thanks NELBHOY, sorry to hear you are in the same situation. I have also written to The Judge. I have read similar posts and there seems to be a consensus that we should not have signed the missives. When we reserved the house we had to conclude missives within 14 days. My solicitor at no time suggested signing missives before selling my flat had risks, obviously I knew I had to sell my flat. At the time I was really confident in selling my flat quickly as previous flats in my block had taken 1 to 2 weeks to sell, with the owner getting the asking price. I had no idea my house would be 10 months late and the housing market would be in this mess.

madyoda · 4 August 2008 at 10:02PM

just read your mails and i,m in exactly the same position signed up last july for january moving and it got pushed out to july and now we can't sell even after dropping price. the thing is we were that confident last august we payed the 5% deposit to the builders(£10,000). new build is £200,000. they will not do a part exchange, they have pushed the moving in date until september but we have had no viewers for a month. Again we can not afford the costs of £53 a day

SouthCoast · 4 August 2008 at 10:16PM

The Law Society of Scotland's Client Relations Office has a legal responsibility to handle complaints against Scottish solicitors. Our aim is to work with you to find the best solution to your complaint. We work to do that in a fair, thorough and impartial way.
If you would like to discuss your complaint or need more information, please contact the Client Relations Helpline on: 0845 113 0018 between 9am and 5pm Monday to Friday.

http://www.lawscot.co.uk/Public_Information/Complaints_against_Scottish_solicitors/

SouthCoast · 4 August 2008 at 11:45PM

Definition of Professional Misconduct
There are certain standards of conduct to be expected of competent and reputable solicitors. A departure from those standards, which would be regarded by competent and reputable solicitors as serious and reprehensible, may properly be categorised as professional misconduct.
Whether or not the conduct complained of is a breach of rules or some other actings or omissions the same questions fall to be asked and answered and in every case it will be essential to consider the whole circumstances and the degree of culpability which ought properly to be attached to the individual against whom the complaint is made (Sharp v Council of the Law Society l984 SLT 313).
Professional conduct complaints could include the following:

Your solicitor has misled or misinformed you.

Your solicitor has breached client confidentiality.

Your solicitor had a conflict of interest.

http://www.lawscot.co.uk/Public_Information/Complaints_against_Scottish_solicitors/what_law_society_scotland_can_do.aspx

elspeth240 · 4 November 2008 at 11:02PM

Hi, i'm in same mess as we couldn't sell our home. Our interest seems to be around £100 per day. Just received a demand from builder for almost 40k in total, yeh right, like I have that kind of money to hand over for nothing and if I did, they wouldn't be getting it. As well as almost 10k interest they reduced the house by 30k and charged us for this. If I had been aware of this risk there would be have been no way I would have gone anywhere near a new build. Everyone should go to their local msp's or mp's and make them aware of the ridiculous fees these builders are trying to get away with as a new law needs to be put in place to prevent this from happening again. I've been to see mine and she was appalled and going to help us fight and expose them so everyone is aware what they are up to.
Tip, Check your home insurance and it may cover your legal fees.

Can't sell flat, signed missives for new house

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