Paid deposit for off-plan and cannot complete...HELP!

poppy10_2

GDB2222 wrote: »

it doesn't explain how people were able to get 100% mortgages on new-builds that were sold at a premium to secondhand properties. I really don't think that the likes of Barratt or Persimmon were 'tipping' the valuers.

Maybe not kickbacks, but the valuers were being provided and paid for by the homebuilders in many cases. Buyers were encouraged to use the homebuilders own solicitors and mortgage brokers.

It's like the credit rating agencies being paid by the companies they are rating - it's a clear conflict of interest. Even though you are not being bribed, you aren't going to bite the hand that feeds you.

Georgie4

GDB2222 wrote: »

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.

I am a lawyer and any reasonable conveyancing solicitor would explain that once you have exchanged contracts you are legally obliged to complete or the vendor will be able to claim the difference between what they were going to sell it you for and what they eventually sell it for. Whether they would actually sue you is debateable. But anyone buying a new house knows tha the company is allowed to put you on 2 weeks notice to complete when THEY are ready and terms are very rarely unfair when you are fully aware of them !

GDB2222

Georgie4 wrote: »

I am a lawyer and any reasonable conveyancing solicitor would explain that once you have exchanged contracts you are legally obliged to complete or the vendor will be able to claim the difference between what they were going to sell it you for and what they eventually sell it for. Whether they would actually sue you is debateable. But anyone buying a new house knows tha the company is allowed to put you on 2 weeks notice to complete when THEY are ready and terms are very rarely unfair when you are fully aware of them !

The particular problem that I was referring to with that comment was that the property was 18 months late being completed. Do you have any views on that?

manintrouble

Hi i need some advice. I am a first time investor in the off plan market. I invested my life savings (£30k) as part of a deposit in an off plan in 2006. Now it is time to complete the lenders have decided not to lend on contracts that were reassigned. My contract is 3rd in line.

A bought from the developer for £200k.
A sold to b for £280k.
B sold to me for £350k

i have no access to additional funds. I was relying on a mortgage to complete.

What is my worst case scenario ? will i lose my deposit or do i have a case ?

Any advice would be grateful.

luckystar1977

Hi,
does anyone have an update on their situation re unable to complete offplan purchase? im sure there are loads of people in the same boat but the forums have gone deadly quiet. im being taken to court over an offplan i couldnt complete on in northern ireland. I would love to hear if anyone ever reached an acceptable solution (without bankrupcy)

Richard_Webster

A bought from the developer for £200k.
A sold to b for £280k.
B sold to me for £350k

If the property was now worth £400K nobody is saying that the developer should be able to claim the difference, so why are people like this poster complaining that they gambled and lost? (A sensible developer will make his contract non-assignable!)

Are they saying they didn't realise it was a gamble? Sorry, I find that difficult to believe. If market values go up then they can equally well go down. Maybe, perhaps, if their solicitor didn't warn them of the risks they might have a case against the solicitor.

I have never acted for someone buying off plan far into the future but if I did, my pre-contract report would be full of bold underlined warnings.

All they can do now is negotiate as good a deal as they can in the hope that the developer will not want bad publicity.