Roads retention being used to complete road works.

tarajayne

Solicitor has come up trumps...


The Contract provisions are clear in that the retention is for your benefit only and in terms of dealing with a development of this nature, where problems had been encountered with the developer, who was not one of the recognised National building companies, then it is prudent practice for any lawyer acting for a Buyer to ensure that their Clients have the benefit and protection afforded by such a retention, where estate roads and sewers have not yet been completed and adopted.
!
He's put it in a letter also stating that this was part of our mortgage and our lender will expectus to use the retention as they stated.

rpc

Now you just have to hope that the bloke organising things possesses the necessary grey matter to work things out correctly. He could still carry on like an idiot...

tarajayne

rpc wrote: »

Now you just have to hope that the bloke organising things possesses the necessary grey matter to work things out correctly. He could still carry on like an idiot...

It had crossed my mind, trouble is there's three of them! :wall:

tarajayne

He's been to our door this afternoon, got into a row with my DH. He's still insisting the retention is not ours to use for our share and said it probably won't go ahead because of us and everyone will know this. But when DH asked what others were paying he said he couldn't say who and how much which was fair enough but how come he can say we've paid nothing if we've put our £5k retention in.

tarajayne

And I don't understand this part of an email?

'Unfortunately, you appear to have been given incorrect advice by your solicitor - they should have checked that there was a finally agreed tender value, otherwise there can be no guarantee that your liability is limited to the amount of the retention.'

mrcow

tarajayne wrote: »

He's been to our door this afternoon, got into a row with my DH. He's still insisting the retention is not ours to use for our share and said it probably won't go ahead because of us and everyone will know this. But when DH asked what others were paying he said he couldn't say who and how much which was fair enough but how come he can say we've paid nothing if we've put our £5k retention in.

So he's saying that he's going to tell everyone that the road won't go ahead because of you? Has he put that in writing?

He needs to tread carefully.

tarajayne

No, he said that on our doorstep, rather forcefully in front of our kids this afternoon.

Clearlier

tarajayne wrote: »

And I don't understand this part of an email?

'Unfortunately, you appear to have been given incorrect advice by your solicitor - they should have checked that there was a finally agreed tender value, otherwise there can be no guarantee that your liability is limited to the amount of the retention.'

What I read from that is he is saying that you could have to pay more if the retention value didn't cover your share of the costs. It sounds reasonable but given that there is a cost of £60k that is to be shared between 20 properties it's irrelevant.

Is there a possibility that he's just absolutely rubbish with numbers and getting himself all of a muddle trying to work out how to allocate the costs and getting excited as he sees his share of the cost going down and down as he thinks of other ways to reduce it?

I would be tempted to write (a lot easier to let him analyse something that's written down with nobody else around than to respond to a verbal statement) and say that you understand that the cost of the surfacing will be £60k and that 20 houses are responsible for this cost. £60k/20 = £3k share for everybody. However as part of your purchase you negotiated a retention so that there is £5k available to be put towards the cost and you are happy for the full £5k minus your legal costs to be put towards this. I would also consider mentioning that on this particular issue you would like to communicate only by letter or at a pre-arranged meeting.

It does read as somebody who has got themselves lost in the numbers and is a bit emotional about money (which doesn't suit the position he seems to have put himself in).

tarajayne

Clearlier wrote: »

What I read from that is he is saying that you could have to pay more if the retention value didn't cover your share of the costs. It sounds reasonable but given that there is a cost of £60k that is to be shared between 20 properties it's irrelevant.

Is there a possibility that he's just absolutely rubbish with numbers and getting himself all of a muddle trying to work out how to allocate the costs and getting excited as he sees his share of the cost going down and down as he thinks of other ways to reduce it?

I would be tempted to write (a lot easier to let him analyse something that's written down with nobody else around than to respond to a verbal statement) and say that you understand that the cost of the surfacing will be £60k and that 20 houses are responsible for this cost. £60k/20 = £3k share for everybody. However as part of your purchase you negotiated a retention so that there is £5k available to be put towards the cost and you are happy for the full £5k minus your legal costs to be put towards this. I would also consider mentioning that on this particular issue you would like to communicate only by letter or at a pre-arranged meeting.

It does read as somebody who has got themselves lost in the numbers and is a bit emotional about money (which doesn't suit the position he seems to have put himself in).

We did exactly that last week, wrote to them all saying just what you've put. That's why he came round as he's insisting our retention is not ours to use to cover our share. He said if we pay nothing above the retention the roads won't happen and everyone will know its because of us and he said what about 'community spirit'!

RabbitMad

Whilst its very community sprited of you to offer the full £5k you might find your mortgage company will onnly let you have £3k plus legal costs

I think you offer is more than generous - tell the little * your community spirit is putting in £2 more than you have to