Pulled out before exchange - invoiced for costs!!

martindow

joseph.tpja wrote: »

The invoice attached has cost breakdown as:
Tiles £ 1,164.91
Tile fitting cost £ 1,077.12
Worktop cost £ 417
Worktop fitting cost £ 275
Removal cost £ 586.81
Sub-Total £ 3,520.84
VAT £ 704.17

Total Amount Outstanding £ 4,225.01

I would definitely let them take you to court as others have suggested and let the judge decide. Small claims is very informal and providing you are well prepared not too stressful.

Apart from the discrepancy regarding the cost of the tiles, there is no reason to remove them. They need to fit a worktop and lay tiles whoever buys the house so their loss is minimal and far less than the sum they are claiming.

jtm8866

anselld wrote: »

AFAIK they cannot claim legal costs other than Court fees etc.
You should counter claim for return of your £500 reservation fee due to the Developer making a material change to the property prior to exchange.

To do counter claim for £500 reservation fee, do I have to take this separately to small claims court? or can I do this during the same time when/if the developer take £4k invoice claim to small claims court?

The_Palmist

Is paying the difference between standard and upgraded items a possible outcome?

MobileSaver

martindow wrote: »

I would definitely let them take you to court as others have suggested and let the judge decide. ... their loss is minimal and far less than the sum they are claiming.

I completely agree; based on the info you have provided they do not have a leg to stand on.

I suspect they have deliberately inflated their claim in the hope that you kid yourself you are getting off lightly by agreeing to a smaller amount (e.g. just the cost of the tiles.) I don't believe they are entitled to a penny and they are extremely unlikely to actually remove anything. So even if they can bully you into paying an extra £500 or £1000 then they are quids in as it is pure profit. Don't fall for it!

I would respond with a short and sweet reply; don't go into too much detail where you may accidentally admit some sort of liability or make a factual error that could be used against you. Something along the lines of "Further to your recent correspondence, as you will see from our emails and the paperwork I signed, all quotes were subject to exchange and/or completion of the property. As you made material changes to the property without consultation or agreement we will no longer be exchanging on this property and so no payment is due. Hugs & Kisses, Joseph x"

jtm8866

The_Palmist wrote: »

Is paying the difference between standard and upgraded items a possible outcome?

Maybe, atleast from my side. To be fair, I can probably pay £985 as originally unofficially quoted to me for the tiling work but definitely not £1164 for tiles and £1077 for tile fitting costs.

So in this case, I can probably live with not getting £500 reservation fee back and paying the difference £985-£500=£485 to the developer. However, my Mrs is not convinced even to that option. But that is as far as I can go.

MobileSaver

The_Palmist wrote: »

Is paying the difference between standard and upgraded items a possible outcome?

Why should the OP have to pay anything when the developer wasn't able to sell the house/driveway that the OP ordered?

joseph.tpja wrote: »

So in this case, I can probably live with not getting £500 reservation fee back and paying the difference £985-£500=£485 to the developer. However, my Mrs is not convinced even to that option.

I'm with your Mrs! This is exactly what they want you to think so that you pay them an extra £985 that they're not entitled to and is pure profit for them; they'll be drinking to your health and laughing their heads off down the pub the very next day.

The reservation fee you have probably lost depending on what the original reservation paperwork you signed said but check it as there may be a get out due to their material change to the property.

DaftyDuck

I wouldn't go that far. I agree with MobileS, but go even further, and would say less than he has.

Even his briefest communication opens a loophole:

....As you made material changes to the property

...


"Ah", they say... "But, as you can see from the small print, that doesn't count as a material change... As you state you wouldn't pay because of a material change, now it's clear it's not, pay up!"

In all legal matters, the less said the better. That often seems to reduce as far as"say nothing". That, in turn, is sometimes not as good as being seen to mitigate a problem before court.

Here, I would only say the barest minimum.

jtm8866

MobileSaver wrote: »

Why should the OP have to pay anything when the developer wasn't able to sell the house/driveway that the OP ordered?



I'm with your Mrs! This is exactly what they want you to think so that you pay them an extra £985 that they're not entitled to and is pure profit for them; they'll be drinking to your health and laughing their heads off down the pub the very next day.

The reservation fee you have probably lost depending on what the original reservation paperwork you signed said but check it as there may be a get out due to their material change to the property.

Here is the extract from reservation form I signed:
CONDITIONS OF RESERVATION:
1. The Property is reserved Subject to Contract until ………………………… during which time purchasers are expected to instruct their solicitors to proceed with the necessary conveyancing
.Contracts must be exchanged within this period after which the developers reserve the right to re-offer the Property and/or increase the purchase price where it is deemed appropriate.
2. Where purchasers are dependent upon the sale of another property this reservation is conditional upon a satisfactory valuation of their own property by the developer’s appointed agents.
3. The Reservation Form is not a contract to purchase nor does it form part of any contract to purchase.
4. The Reservation Period is not a contractual period but gives the purchaser a reasonable period in which to review the contract documentation and exchange contracts to purchase.
5. The Reservation Fee does not form part of the purchase price and does not give the purchaser any rights to the Property in question.
6. A sum equal to the Reservation Fee will be deducted from the purchase price on completion providing contracts are exchanged within the Reservation Period.
7. The developer reserves the right to withdraw from the sale (which has been agreed subject to contract) at any time at which point the Reservation Fee will be returned in full, except where
the Reservation Period has expired, in which case the Reservation Fee will be retained.
8. In the event that the purchaser is unable to proceed at any time during the Reservation Period, (for any reason whatsoever), the developer reserves the right to cancel this reservation or withdraw from the sale and/or sell to another buyer on notice to the purchaser(s), in which case the sum stated above will be retained.
9. All Reservation Fees are passed to and held by the developers or their solicitors. Purchasers shall have no claim against the Agents for return of the Reservation Fee or any loss whatsoever in the event of cancelation.

jtm8866

DaftyDuck wrote: »

I wouldn't go that far. I agree with MobileS, but go even further, and would say less than he has.

Even his briefest communication opens a loophole:...


"Ah", they say... "But, as you can see from the small print, that doesn't count as a material change... As you state you wouldn't pay because of a material change, now it's clear it's not, pay up!"

In all legal matters, the less said the better. That often seems to reduce as far as"say nothing". That, in turn, is sometimes not as good as being seen to mitigate a problem before court.

Here, I would only say the barest minimum.

Agreed and useful advice. Thanks!
I will keep it short and simple in my response.

Crashy_Time

joseph.tpja wrote: »

@steampowered

I have already replied to the estate agent denying any liability but now received invoice from developer and the estate agent threatening me that they'll work with the developer's solocitor to get this cost reimbursed from me.

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?

I'm more worried about additional legal costs to defend myself.

It will cost them more to recover than you owe? They have enough to worry about trying to shift over-priced boxes in a stalled market, I wouldn`t worry too much about this, but in future you would need to be very clear about your position in various scenarios before signing anything.