withdrawing from new build after signing missives

NELBHOY · 8 July 2008 at 8:34PM

Signed missives for a new build property with Persimmon Partnerships over a year ago. Were meant to move in over a year ago, but the latest date they have given us is end of Aug, but this looks unlikely. Planned for me, wife & 2 young boys to move to Australia next year, so decided to withdraw from house 2 weeks ago believing we would lose the £2000 deposit. Shocked to discover, through our lawyer, that Persimmon would "ruin us" if we pull out. Result is wife is crying every day, kids are getting upset, & to top it all I had to go into casualty last week with chest pains.
Is there anbody out there who knows of a way out, or how serious Persimmon are about chasing us through the courts. Really need help on this one.

pootle30 · 8 July 2008 at 8:40PM

hi there, sorry to hear your story. does this mean that persimmon are very late in having the house ready - was there not a maximum window in the missives in which they had to complete? If not, your lawyer is strictly speaking correct, you completed the contract confirming you would buy a house from them so if you dont then do as agreed they can sue you for breach of contract and recompense for their losses. however we were talking about this at work the other day and if they did this then effectively it would be a groundbreaking case as i'm not aware of any housebuilder ever actually doing this, but then they probably resold the property very easily before.

mrsf77 · 9 July 2008 at 9:22AM

I would definitely seek advice elsewhere. We are in the process of buying a house through Charles Church (Persimmon) and they stopped builing our house over 4 months ago. I have taken it up with our solicitor and have had to badger the solicitor and Persimmon, who have now said that because they stopped building for unreasonable reasons (due to econmomic climate) we can get out of the contract.
I suspect your solicitor is talking rubbish, were they recommended to you by Persimmon?
When we exchanged contracts we received a letter saying the anticipated completion date is August/ September 2008 (the house is about 4 bricks high so this is not going to happen) do you have a letter like this?
As far as I can see a year delay is unreasonable, what reasons have they given you?

poppysarah · 9 July 2008 at 9:47AM

Solicitor needed that is independent.

I don't see how on earth they can be over a year late building a house without huge penalties yet you can't be released from the deal.

Geenie · 9 July 2008 at 10:24AM

I have just seen the following article in our regional paper today, and it would seem that the builders are getting really tough about following through contracts taken out before price falls. It will be interesting to see how this case turns out, as it could result in lots of other people trying to pull out if the buyers succeed! Good luck with yours OP.

Legal battle after home values dive
Developer calls in lawyers
http://thisiswestcountrybusiness.co.uk/News/Zero-4-homes.aspx

pinkshoes · 9 July 2008 at 10:44AM

Surely your mortgage offer would have run out by now, and if the value of the house has now dropped significantly in the time they have failed to complete it, then at the very least you would have to re-negotiate the price and knock a significant amount off.

A bank won't lend you the money if they value it at less than what it's being sold for.

Was your solicitor independent of Persimmon?

Debt_Monkey_3 · 9 July 2008 at 11:07AM

Sack your solicitor and get a new one that specialises in contract and building disputes.

ruggedtoast · 9 July 2008 at 11:45AM

Are you definitely sorted out to go to Aus?

If so if I were you I would send them a letter explaining that due to the unreasonable length of the delay you are not only withdrawing your offer but will be expecting your deposit to be refunded in full, though as a goodwill gesture and because you are leaving the country will not be pursuing them for further damages due to the inconvenience caused, emotional distress and negative effects on yoiur health.

If they dont like it good luck trying to get anything to stick to you in Australia.

Otherwise you need a proper lawyer to look over this, not Persimmons one. There have been a load of these queries coming up on this site over the last month and the general consensus has been that there are so many variables you need to see a good contract lawyer to tell you if theres a get out clause. If there isnt a completion date stated on the contract and they havent obviously broken any of the other clauses youre left with your lawyer arguing with their lawyer what the definition of "reasonable" constitutes.

Does anyone know if theres been a precedent for this set anywhere?

SouthCoast · 9 July 2008 at 12:46PM

From the link above:

Stephen Ramsden, managing partner at Gill Akaster law firm, said: “We act for more than 20 people who have refused to complete (their purchase) because their properties were not completed by the required deadline and there was a clause in the contract that says if the properties were not completed by the end of June then the contract can be rescinded.

Think that I will become a property lawyer as that is where the future money will be.

NELBHOY · 9 July 2008 at 2:47PM

mrsf77 wrote: »

I would definitely seek advice elsewhere. We are in the process of buying a house through Charles Church (Persimmon) and they stopped builing our house over 4 months ago. I have taken it up with our solicitor and have had to badger the solicitor and Persimmon, who have now said that because they stopped building for unreasonable reasons (due to econmomic climate) we can get out of the contract.
I suspect your solicitor is talking rubbish, were they recommended to you by Persimmon?
When we exchanged contracts we received a letter saying the anticipated completion date is August/ September 2008 (the house is about 4 bricks high so this is not going to happen) do you have a letter like this?
As far as I can see a year delay is unreasonable, what reasons have they given you?

Thanks everybody for replies. The lawyer we are going through is not Persimmon appointed, but very much of the "don't rock the boat variety". What I should have mentioned was that each time we were put back, we were offered our money back & given a new date which was usually 3 or 4 months added to original (or revised) date. Stupidly believed them each time & didn't opt out. The last offer to walk away was about 3 months ago.
They are now saying that even if it does run on this time they will not offer the get out.
Reasons for the delay range from the sales office being burned down due I believe there being a problem with the (dodgy) security firm. Workers walking off site due to a dispute, & the weather. Also know that contract workers on site were released over a month ago, so progress has again slowed.
Does anybody know of a good contract lawyer in Scotland?
Again thanks for the response.

sdooley · 9 July 2008 at 3:35PM

NELBHOY wrote: »

each time we were put back, we were offered our money back & given a new date which was usually 3 or 4 months added to original (or revised) date. Stupidly believed them each time & didn't opt out. The last offer to walk away was about 3 months ago.
They are now saying that even if it does run on this time they will not offer the get out.

Sounds like you might need a professional negligence lawyer for a claim against your solicitor - did he advise you that you might not get another chance to walk away?

withdrawing from new build after signing missives

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