A property was sold to us under the false premise that it was ready. Is this fraud?

steampowered

To bring a legal claim for fraud, you need to be articulate the precise thing which was fraudulent. In other words you need to be able to point to a specific statement which the seller made, that was fraudulent - and state whether that statement was made in writing or orally.

Can you do this? If not, you will not be able to make a fraud claim.

There is also such a thing as 'misrepresentation'. If a specific misrepresentation was made to induce you to enter into the contract, you may be able to claim for that. However, once again, you would need to be able to point to a very specific written or oral misrepresentation.

Are you not able to simply pull out of the deal and get your reservation fee back?

SuboJvR

I would review the reservation paperwork carefully at this stage, chiefly around anything relating to pulling out, with your solicitor.

The problem is at this stage you haven't "bought" anything.

It's really hard being a FTB, believe me, I know! And as you say it's really daunting and this is part of the reason we hire solicitors to help us with house purchases. If you did lose the 2k now, it would be a huge chunk of money obviously but my worry at this stage would be all the false promises about the actual property/flat itself, it could be an even bigger minefield...

tzzt123

Hmm,

Several points I'm thinking about are:

1. The developer stated the property was ready while it was clearly not.
2. We reserved and paid in good faith based on the seller's words we would be able to move within days.
3. The seller has been dishonest through these 4 months - on dates, the condition of the property, the negotiation with an additional developer, marketing, etc
4. The seller has been making suggestions such as 'there is no need to put anything in writing', 'tell your solicitor to exchange without warranty, many people do that', 'by asking us to paint the wall / fix holes in the carpet' your standards are too high
5. The property was advertised as a luxury high standards building.

I might be able to pull out but:

1. The seller cannot give me my time back
2. The reservation fee is at risk
3. The solicitor's fee are at risk
4. Beyond just fees, it's the stress, all due to the seller's behavuour

SuboJvR

tzzt123 wrote: »

Hmm,

Several points I'm thinking about are:

1. The developer stated the property was ready while it was clearly not.
2. We reserved and paid in good faith based on the seller's words we would be able to move within days.
3. The seller has been dishonest through these 4 months - on dates, the condition of the property, the negotiation with an additional developer, marketing, etc
4. The seller has been making suggestions such as 'there is no need to put anything in writing', 'tell your solicitor to exchange without warranty, many people do that', 'by asking us to paint the wall / fix holes in the carpet' your standards are too high
5. The property was advertised as a luxury high standards building.

I might be able to pull out but:

1. The seller cannot give me my time back
2. The reservation fee is at risk
3. The solicitor's fee are at risk
4. Beyond just fees, it's the stress, all due to the seller's behavuour

Do you really still want to live in this flat?

All that's gone wrong so far is only the stuff you know about.

tzzt123

Good question, you're totally right !

We're not sure ... the location is not bad, and the apartment itself, visually, is nice, but all this - we've started associating everything with the mess, but still - we are now considering the options, that's why I started this topic...

cjmillsnun

Pull out. The fees are small beer compared to the stress. You're out a few hundred quid but walked away from a potential disaster that I don't doubt costs over a hundred grand.

Go rent somewhere so you can be back with your dog whilst you regroup and find somewhere else. The developer sounds like a cowboy outfit anyway.

SuboJvR

Surely if they thought they had got the flat "basically ready" but the NHBC weren't prepared to sign it off this should be a big RUN AWAY flag? They've done all the cosmetic stuff without actually making the building...safe?

tzzt123

Yeah, easy to say, hard to do. The more I go over everything in this post, it sounds like an emotionally abusive relationship. The seller telling us things that are incorrect, continue to shift goalposts, etc.

Even questions like 'why are you not walking away' and 'how did you get into this from the first place' are the exact kind of questions that would fit...

At the same time:

1. We're a bit emotinally invested in the property. At least the apartment.

2. We're not walking away from a few hundred pounds, but instead, from months of investment, stress, waiting, and roughly 3000 pounds including the reservation and solicitor fees.

3. Regardless, what I am trying to find out is whether we could take legal action against them. They shouldn't be taking advantage of us or any other buyers, especially first time. This kind of companies is what's making the property market in the UK a dangerous jungle.

DUTR

tzzt123 wrote: »

Yeah, easy to say, hard to do. The more I go over everything in this post, it sounds like an emotionally abusive relationship. The seller telling us things that are incorrect, continue to shift goalposts, etc.

Even questions like 'why are you not walking away' and 'how did you get into this from the first place' are the exact kind of questions that would fit...

At the same time:

1. We're a bit emotinally invested in the property. At least the apartment.

2. We're not walking away from a few hundred pounds, but instead, from months of investment, stress, waiting, and roughly 3000 pounds including the reservation and solicitor fees.

3. Regardless, what I am trying to find out is whether we could take legal action against them. They shouldn't be taking advantage of us or any other buyers, especially first time. This kind of companies is what's making the property market in the UK a dangerous jungle.

NO! is the answer ok?
It's one of the stresses of property purchases, let them sell it to somebody else and you seek another place to live,you have done ok without it so far.

steampowered

You can't claim for stress or time wasted.

You could only have a reasonable claim for fraud to get the reservation fee back, if you were told that the 'property was ready' BEFORE you signed on the dotted line.

If you were told this AFTER you signed on the dotted line, your only realistic legal remedy would be for breach of the contract you signed with the developer. Please read the contract and tell us what it says about pulling out.

If you want to pull out, now would be the time. Losing solicitor's fees and time on purchasers that fall through is part of the risk of being a buyer I'm afraid.