Recind - Off Plan Property

RabbitMad

Jake'sGran wrote: »

In view of the current climate and the fact that the government are trying to help people in difficult situations with regard to housing I don't believe you would lose in court.

What has what the government "claim" to be doing have anything to do with contract law. I believe the OP "should" lose in court. They have entered into a contract which they now wish to break.

Unfortunately you can't believe anything that Our saviour and his puppet say, they aren't trying to help anyone except themselves. That is why they plan to sell us and our children into slavery (by borrowing even more) just to win themselves another election.

Where is a modern day Guy Fawkes when you need one, failing that give me a king Charles as all previous King Charles' have abolished parliment.

PAP_2

silvercar wrote: »

That's the point to argue, if they had built on agreed schedule, he would have taken possession of something supposedly worth the agreed price. The delays have meant he will be acquiring something worth less.

For a builder to stand up in court and say it would have been worth XX on day YY if I'd pulled my finger out and finished the build; however I would still like XX even though by the time I finished the build its only worth ZZ, may e considered unfair by the judge.

The judge also has to look at the financial implications to both parties of the contract being honoured.

Hello again,

I have been served an Completion Notice a number of times only for the developer to withdraw it again. I have had FOUR mortage applications and valuations done over the past two years, only to find the property isn't complete and the sale cannot go through so I have to wait a little while longer.

Can the developer withdraw a completion notice once issued? And would this not be a breach of contract on their part?

PAP_2

RabbitMad wrote: »

What has what the government "claim" to be doing have anything to do with contract law. I believe the OP "should" lose in court. They have entered into a contract which they now wish to break.

It's not that i want to break the contract, the problem is that I cannot get a mortgage from anyone...not at that price. Lenders have gotten more causious now, and had the property been complete on time I would not have had a problem getting a mortgage.

Also, I am willing (although not happy about it) to loose my deposit. I understand that it was a legal contract and that failing to complete would mean i could loose my 10%, however the main issue I have is the developers taking me to court for the entier difference of £60k (difference bettween original price and current market price). I don't think this is fair. Its taken me years to save up for deposit and now i can loose it all and more.

rocknroll

PAP - you bought off plan which is what thousands of people were doing up until last year when the housing market took a dive. People were buying off plan for properties that were not going to be ready for 3 or 4 years - hoping that by the time they completed they had made a good profit - and they were believe me. Investors loved off plan and loved it if the build didnt start for 3 years - it meant that they could assign their contracts 6-12 months before completion and make a profit with a higher sale price.

In your contract you need to check the LONG STOP date - this is a date that is always put into off plan contracts - so eg you buy something now which is due to complete in 2010. The long stop date might say that the developer may not build/complete until 2015.

In my experience, if you cannot complete - the developer can just rescind your contract and take your deposit. I do not believe they are able to FORCE you to complete if you are out of funds. Again, this will all be in your contract. CHECK YOUR CONTRACT. Failure to complete will be one of the clauses. If your solicitor has allowed you to sign a contract which states that failure to complete will allow the developer to enforce your completion then that is a bad contract!!

hethmar

So this was a home for yourself, not a buy to let or an investment?

Then I would say to the builder that they have dragged their feet that you have had additional expenses renting/getting valuations and that because of delay on their side we are now into a period where mortgages are no longer readily available. IF you still want the place offer the £190k or tell them you will have to go bankrupt.

Premier_2

PAP wrote: »

... I don't think this is fair. Its taken me years to save up for deposit and now i can loose it all and more.

Life's not fair, but you agreed to a contract to purchase the property at some time in the future. That time has now arrived and you are required to pay that money - or face a claim for damages. Why would it be fair for the developer to lose money because of your breach of the contract?

Presumably you took independent legal advice before committing yourself to this contract?

rocknroll

Hi - I have just rethought - you will definitely lose your deposit. The developer is entitled to sue you for damages for failing to complete and he can resell the property and get back from you any difference in price - which is presumably where he is coming from. Unfortunately for you, in better times a developer would not risk his good name and reputation and would just resell it himself - but times is hard. Sorry for misguiding you but you do need to get a good lawyer and see if he cant negotiate you out of your mess.

silvercar

If this ever went to court, the judge has an obligation to look at the financial implications any judgement made would have on the parties involved. Look at the link I post on the first page.

RabbitMad

PAP wrote: »

Hello again,

I have been served an Completion Notice a number of times only for the developer to withdraw it again. I have had FOUR mortage applications and valuations done over the past two years, only to find the property isn't complete and the sale cannot go through so I have to wait a little while longer.

Can the developer withdraw a completion notice once issued? And would this not be a breach of contract on their part?

This might be your get out - speak to an independant sols immediately. After they withdrew the Completion notice the 1st time the contract might have been breached by them. You might be able to argue that this means you no longer have to complete and that you might also be able to get your deposit back.

PAP_2

Premier wrote: »

Life's not fair, but you agreed to a contract to purchase the property at some time in the future. That time has now arrived and you are required to pay that money - or face a claim for damages. Why would it be fair for the developer to lose money because of your breach of the contract

The developer i'm dealing with has several other businesses under its name ranging from construction companies to bars and restaurants. I've done a little digging and found that over the past 10 years it has disolved several of its other companies through "Winding up Orders" now i'm not a expert but it seems that these companies have gone insolvent?

Yes your right, lifes not fair. But can you tell me why it is OK for companies like this to simply close up shop and skip out on their debts, but for the average Joe its a different story? Is it because they can afford a better lawyer? Or am I missing something here?

I'm sure if the situation was reversed the developers would get a "winding up order" and close up like they have done in the past. I'm begining to think declaring myself bankrupt is my only way out!

Anyone know of a good lawyer or insolvency practioner?