Pulled out before exchange - invoiced for costs!!

Thrugelmir

joseph.tpja wrote: »

We have only signed the reservation form and extras form but nothing had it in written regarding to the payment of extras nor verbally agreed on what would happen in the event of nor going ahead with the sale.

Perhaps you should have asked before commiting the developer to the expenditure. Who do you think should pay for the bespoke extras you ordered.

eddddy

joseph.tpja wrote: »

We have only signed the reservation form and extras form but nothing had it in written regarding to the payment of extras nor verbally agreed on what would happen in the event of nor going ahead with the sale.

So it sounds like it was a separate contract for the extras - not part of the house sale contract. And nothing was said or written about what happens with the 'Extras Contract' if the house sale falls through.

So if the developer eventually takes you to court, the court would make a decision based on...

...What would a reasonable person expect to happen in relation to the 'Extras Contract', if the house sale falls through?

I'm not sure that it's a clear-cut decision either way.


FWIW, it's not cost effective to employ a litigation solicitor over a £4k debt. The solicitor's fee could end up more than than £4k - and whether you win or lose, you probably won't be able to claim your legal costs back from the developer.

joseph.tpja wrote: »

Regarding the 'letter before action', since I understand that they don't have any legal basis here, Can they still issue me such letter or take me to court?

Yes.

Slithery

joseph.tpja wrote: »

Can they still issue me such letter or take me to court?

Anybody can send you a Letter Before Action and take you to court, I could do it if I wanted to.

Whether you win or lose is a completely different matter.

jtm8866

@edddy

FWIW, it's not cost effective to employ a litigation solicitor over a £4k debt. The solicitor's fee could end up more than than £4k - and whether you win or lose, you probably won't be able to claim your legal costs back from the developer.

So what do you suggest?
Since I can't afford litigation costs, is my only option is pay this £4k?
Paying this £4k from my pocket is so unfair to me. I did not sign any exchange contract not agreed to any liability before contract exchange. As a buyer, am I not eligible to pull out before exchange without any financial liability?

System

to be fair you chose the extras and left pulling out until the last minute so everything was already fitted in. surely you knew where the driveway was going to be before the day of signing. you can't go round ordering 4 grands worth of gadgets then expect the company/ tradesman/ contractors to pay for it whilst you tittle off to another new home. in the building business one man's wage is dependant on the next man getting paid you have to think of the consequences of your own actions and pay for them.

Red-Squirrel_2

joseph.tpja wrote: »

@edddy



So what do you suggest?
Since I can't afford litigation costs, is my only option is pay this £4k?
Paying this £4k from my pocket is so unfair to me. I did not sign any exchange contract not agreed to any liability before contract exchange. As a buyer, am I not eligible to pull out before exchange without any financial liability?

Don't let the litigation solicitor do any billable work, tell them you do not wish them to act for you on this.

Let the developer take you to court, have all your paperwork in order.

Let the judge decide if you do owe 4k. If you do, pay up.

eddddy

joseph.tpja wrote: »

So what do you suggest?
Since I can't afford litigation costs, is my only option is pay this £4k?
Paying this £4k from my pocket is so unfair to me. I did not sign any exchange contract not agreed to any liability before contract exchange. As a buyer, am I not eligible to pull out before exchange without any financial liability?

No - you've misunderstood my post.

I'm saying it's not sensible to pay a litigation solicitor.

If the developer decides to take you to court, it will be the small claims court. The developer will submit a statement (and other evidence) saying why they believe you owe them £4k.

You submit a statement (and other evidence) saying why you believe you don't owe them £4k.

The court will look at the evidence from both parties, and decide on the balance of probabilities whether you owe the money or not.

Thrugelmir

joseph.tpja wrote: »

As a buyer, am I not eligible to pull out before exchange without any financial liability?

Is your word i.e. signature worthless ?

jtm8866

@edddy

No - you've misunderstood my post.

I'm saying it's not sensible to pay a litigation solicitor.

If the developer decides to take you to court, it will be the small claims court. The developer will submit a statement (and other evidence) saying why they believe you owe them £4k.

You submit a statement (and other evidence) saying why you believe you don't owe them £4k.

The court will look at the evidence from both parties, and decide on the balance of probabilities whether you owe the money or not.

Thanks edddy for your advice.

It sounds fair to me.

I will let the court decide whether I owe the developer £4k or not. At least this way, I avoid my legal representation expense.

Although, if I lose the case, will I have to pay more than £4k to cover the opponents legal expenses too?

Duckdodgers

I've no idea legally but if I ordered a load of fixtures and fittings to be added to a house and agreed a price I would expect to have to pay for them.