Anyone Sued yet from pulling out of a new build in Scotland

Anon1

We are stuck in a catch 22, we reserved and signed missives for a new build in Scotland last year, the build is running approx 1 year behind schedule. We're unable to sell our current property despite lowering the asking price. We've been told if we don't complete, we face being sued for marketing costs, massive interest payments, plus any shortfall in the price the house is re-sold for.

I have seen similar posts but none with recent updates. Does anyone have experience of builders suing people for pulling out?

Anon1

Is there anyone else out there in a similar situation?

This is front page news today in the Motherwell Times.

I would greatly appreciate any help you can offer in this matter.

GDB2222

There is an OFT report published today that may offer you some comfort. There is to be a code of practice dealing with delays on new builds, amongst other things.

http://www.money.co.uk/article/1001520-oft-recommends-new-homeowner-protection.htm

There is clearly something very, very wrong with a contract that allows the builder to delay by over a year and then requires you to complete with 2 weeks notice. I would strongly recommend seeking legal advice about having the contract overturned. I am not aware of any current cases on this, but there are bound to be some soon.

barnaby-bear

Anon1 wrote: »

We are stuck in a catch 22, we reserved and signed missives for a new build in Scotland last year, the build is running approx 1 year behind schedule. We're unable to sell our current property despite lowering the asking price. We've been told if we don't complete, we face being sued for marketing costs, massive interest payments, plus any shortfall in the price the house is re-sold for.

I have seen similar posts but none with recent updates. Does anyone have experience of builders suing people for pulling out?

There are loads of you - I just add the phrase Catastrophic missive fees and link you all up in your own little community....
http://forums.moneysavingexpert.com/showthread.html?t=1104063&highlight=catastrophic+missive

RabbitMad

What you are asking for is a precident. Has somebody been sued and lost or did they win.

Its not going to help you 15 people posting - we pulled out and we didn't get sued.

You need to speak to a solicitor to see if you can use the delay on the builders side to get out of the contract but I'm not hopeful for you.

Lets look at the otherside of the coin. You sign a contract for a new build that should be ready in x months time. As it gets nearer you find out about delays but in the meantime house prices have gone up 10%, another year goes by and the property has gone up another 10% and you now finally sell your house. You had 20% growth on both properties due to the builders delay and are cracking open the bubbley when the builder tries to get out of the contract so they can re-sell the flat for 20% more - would you be happy?

GDB2222

The difference is that it''s in the builder's hands when he completes the house.

lucky7777

Hi

Myself and my partner signed the missives on a flat 8 months ago, we have just had it confirmed from the solicitor that the builder is letting us out of the contract! We dont have to pay any remarketing fees but will lose our deposit, which was 1500. We are really pleased, so I would say try and you might get out of the missives!

Anon1

Sneaky house builders blasted for leaving prospective buyers facing ruin through property value clauses;

http://www.dailyrecord.co.uk/news/business-news/2008/12/08/sneaky-house-builders-blasted-for-leaving-prospective-buyers-facing-ruin-through-property-value-clauses-86908-20954467/

GDB2222

I am not familiar with the Daily Record. Is it a load of complete rubbish? Anyway, it says: "Sneaky clauses in missives are making buyers liable for any drop in property values". That's a very odd use of the word sneaky. The whole point about the missives is that it's a contract to buy/sell at a particular price. What did the buyers think they were signing?

latecomer

Its like the Scottish version of the Sun if that helps clarify things.....

neverdespairgirl

Sneaky clauses in missives are making buyers liable for any drop in property values if they fail to complete the deal. They are also demanding interest be paid until such houses are sold on.

Sounds more like standard contract law than anything sneaky, to me. In English legal terms, anyway.