Chain Collapse Post Exchange

marksoton

Jesus wept, what a mess.

Hope it works out for you OP.

Rutledge88

so do I. we are due our first child at the end of april, so we need to find a new house to buy quickly (our seller is re-marketing at £25k more)!

eddddy

Rutledge88 wrote: »

One question which I wanted some guidance on, under the entitlement to damages under my buyers failure to comply with a notice to complete (clause 7.4.2 of the contract) am I able to claim for the 10% deposit (the addition to the 10% of my sale which i know I am entitled to) that i am liable for to my seller?

Angie_B wrote: »

So yes, you should claim the entire cost of everything you are being asked for, plus your 10% (sending what you are being asked for up the chain). Problem comes, as you say, if the FTB have no money.

7.4.2 The seller may rescind the contract, and if he does so:

(a) he may:

(i) forfeit and keep any deposit and accrued interest
(ii) resell the property and any contents included in the contract
(iii)claim damages

So I read Rutledge's question as:

1) Does 7.4.2 mean Rutledge gets all damages PLUS the 10% deposit?

2) Or does the 10% deposit go towards the damages?


Angie B - you seem to be suggesting 1.

So Rutledge can claim all the following from their buyer...
Damages paid by Rutledge to their seller, plus Rutledge's own costs (EA fees, valuation fees, legal fees, cancelled removal fees etc), plus their buyer's 10% deposit

Is that right?

---

Edit to add...

Rutledge88 wrote: »

people are all re marketing for additional money.

...and if Rutledge manages to re-sell the property for a higher price - does that count as mitigating the losses, and reduce the amount of damages that Rutledge can claim from their buyer?

Dird

With so many in the chain (presumably for more money the higher up you go) this sounds like quite a lot in damages, especially with storage fees etc.

Based on episodes of "Can't Pay? We'll Take it Away", if you try to claim all this from Bill & Ben Solicitors I can see them being dissolved and Bill & Ben Legal a week later from the same office. Or is it not as easy for a law firm to play that trick as it is with an EA?

Guest101

Dird wrote: »

With so many in the chain (presumably for more money the higher up you go) this sounds like quite a lot in damages, especially with storage fees etc.

Based on episodes of "Can't Pay? We'll Take it Away", if you try to claim all this from Bill & Ben Solicitors I can see them being dissolved and Bill & Ben Legal a week later from the same office. Or is it not as easy for a law firm to play that trick as it is with an EA?

No-one is claiming from solicitors.


The law society would intervene in such a case as you describe.

Dird

Guest101 wrote: »

No-one is claiming from solicitors.

People were saying to claim from the solicitors for negligence. Then maybe FTB paying up then claiming from solicitors...more likely FTBs deposit covers a small amount of the costs then they go bankrupt to avoid the rest

pinkteapot

Rutledge88 wrote: »

One question which I wanted some guidance on, under the entitlement to damages under my buyers failure to comply with a notice to complete (clause 7.4.2 of the contract) am I able to claim for the 10% deposit (the addition to the 10% of my sale which i know I am entitled to) that i am liable for to my seller?

You should really only be asking your solicitor this. If you're not confident in their answers, find a new solicitor.

There was a thread on here a while back where the armchair lawyers who frequent these forums told a user they had a claim (I'm struggling to remember what it was about - it may not even have been a housing issue) but when it went to court it got thrown straight out. Poor advice on here cost that person a lot in wasted time and legal fees.

This is a complex area of contract law - pay for professional advice.

Ulfar

I think you need to speak to a solicitor not a conveyancer for this.

But I would be putting a claim against the solicitor and buyer at the bottom. The buyer has failed to complete but the solicitor is on the hook as part of their job is to make sure the buyer has the funds available before exchanging contracts.

If I had been the buyer of the top of the chain I would have served a notice of interest on the property he was buying to stop that vendor from pulling out and making things worse.

DaftyDuck

Ulfar wrote: »

.....

But I would be putting a claim against the solicitor and buyer at the bottom. The buyer has failed to complete but the solicitor is on the hook as part of their job is to make sure the buyer has the funds available before exchanging contracts.

....

Do they have liability to anyone other than their client, in that respect?

I ask from a position of complete ignorance (which will come as no surprise to anyone...).

chappers

marksoton wrote: »

Jesus wept, what a mess.

Hope it works out for you OP.

Ditto, but can't see this being resolved very quickly, would echo what others have said. Get a solicitor that deals with these sorts of things, this isn't a job for a conveyancer