Please help with this developer (new build flat)!!!!

GDB2222

Were you given terms and conditions separately? Maybe in a booklet, displayed in the site office, or even on the back of the "paper for the reservation"? The reason I keep asking this is because these deposits are normally expressed as being non-refundable, and I would expect they would have put this on the bit of paper they got you to sign.

Even so, if the terms of the deposit were misrepresented to you, for example that the house would definitely be ready by a particular time, you would have an argument in accordance with the case of Curtis v Chemical Cleaning Co. The trouble with this is that it would be quite a difficult case to argue in court, and the costs (if you were represented) would be more than the £1,000. Of course, the same applies to the builders, so it might be worth issuing proceedings and seeing whether they bother to defend them. It would only be worthwhile if you are prepared to represent yourself.

Finally, is there any chance you paid the £1,000 by credit card (or at least £100 of it)?

Yella77

Thanks for the reply....Well i actually paid the whole £1000with a credit card after i heard about recent airline failures and the advise that you are better protected with a cedit card.

When i was told by one of the people from their HQ, they offered to @ least pay my rent till whenever the flat would be ready but the issue there is that since the offer i was given by Halifax expires in Feb 2009, i would then have to re-apply for another Mortgage all over again which is what i really can't afford again!

There is no small print i was given to say that i would loose my deposit if they don not honour their part of the deal, but i was advise i was going to loose it if 'I' don't xchange contract within 28days which i was ready to do anyway till i was told this wasn't going to be!

gfplux

Hello yella77,
I assume this is your first property purchase.
In "normal" times what you have done has been done many, many times without problem. It is very sloppy on both sides but has worked in the past. Times have changed. Handing over £1000 and getting a receipt with so little detail might now sound crazy. It is possible that the work on the site which you say has stopped may not start up again for a very long time. I suggest you ask for your money back and see what happens. The solicitor you are using may have the builder as a client and that is not necessarily in your best interests in these difficult times.
Let us know how you get on
Good Luck

GDB2222

Yella77 wrote: »

Thanks for the reply....Well i actually paid the whole £1000with a credit card after i heard about recent airline failures and the advise that you are better protected with a cedit card.

That's very good news. I would just write to the builders saying that the deposit was given as a gesture of good faith and you want it returned as the builders aren't in a position to proceed within the time-scale they promised. Say that, if they don't refund you, you'll reclaim it from the credit card company. Then do just that. I wouldn't bother with court proceedings.

Yella77

Many thanks to all your replies, i really do appreciate it.

Another question/advice I do seek is about the agreed price to the flat. I was just called last week by Bryant Homes to ask if I would consider another flat which they have already built but need some fittings and co put it. I have been to the new flat and I am quite please with it and would be ready in about 5-6weeks.

But one thing i then noticed on their Billboard was that the initial asking price for the flat was for £117K and I put in an offer for £95 which was then accepted, having being to the flat i then noticed the asking price on their billboard for the same flat has been pushed down to £99,999. Am I right to now say to Brayant that I would rather buy the Flat for, say, £90. or less?

I have not exchanged any contract but the deposit paid (£1k) was on the basis that the price was for £95K.

Any advise would be greatly welcome!

GDB2222

No, get your deposit back first. Any attempt to renegotiate the price undermines your position to do that. In any case, you have no idea whether these flats will get built this side of 2020.

Yella77

The flat I was offered before cannot be ready before March nxt year which was the reason I was thinking of getting my deposit back; But I have just been to another flat that has been built and the only thing remaining there is the fittings which I can say is 80% complete from my personal assessment.

My question is can i re-negotiate the price based on the further drop in the market value or would that put me in a position where I would then not be able to do anything due to the fact that they have my £1k deposit?

Although, they have agreed to pay for the valuation on the new flat they have offered, which I would have thought would be normal anyway!

fatpig_2

Yella77 wrote: »

Pls Help with buying a new build flat!!!
I was initially told that a new build flat we were looking to buy was going to be ready for Dec 2008. in Sept. when i was shopping around to buy one. I was then advise last week that the date i was given would not be feasible anymore due to uforeseen circumstances as they have not stopped all construction work on site.

I would not have been bothered normally, since this would really allow me to save up more money whilst waiting for my new falt to be built. But I was then told that the date i was given in March 2009 is only a tentative date as there is no gurantee that this would happen. My offer with Halifax expires in Feb 2009 and halifax has said this would not be extended and would have to re-apply all over again!

Now my question is about getting my money (reservation fee) and the valuation fee paid to halifax back from the developer as they have surely not informed me as to true state of things before i commited to buy.

R there any laws i can pursue (miss selling maybe?!?).

Any advise/help would be greatly welcomed.

Thanks

Good news. Use it as an excuse to pull out of the purchase. You'd need to be mad to buy a new build flat at the moment

beautifulgorgeous_2

Why on earth do want a new build flat?

Yella77

I have just recieved copies of the contract from my Solicitors re buying of my flat and after going through the contract, i noticed a £150 charge for "Document Fee" from the Sellers' Solicitors.

I called my Solicitor to ask about this charge and she was not particularly clear on the reason for the charge.

Is this a normal trend and why would I have to pay the Seller's Solicitor for providing the contract papers to my Solicitors, and this was never mentioned in the 1st place?

If anyone can answer this I would be really greatful...

"I got a bargain on the flat though!!!!"