Please Help -Developer failed to refund the Premium paid to off-plan home

ibuythings

I bought an off-plan property howeverPractical Completion did not take place on the long stop date, according to the agreement, I am eligible to terminate the agreement and receive the premium (two installments) already paid. The Notice to terminate the Agreement had been sent to developer solicitor in January followed by a 2nd Notice 20 days later. However, my solicitor said the developer solicitor alleged the Termination of Agreement is invalid and contested, by sending the Notices I have breached the terms of Agreement for Sale. The deadline to return the payment had expired and developer solicitor had no response to that.

My solicitor said they will pass the case to their Litigation Dept. with a view to Court Proceedings now being issued to recover the full payment of the deposits.

Does it mean the case would submit to court? what can I do to receive back the premium?

BTW, My solicitor does not seems to act on my interest as well, at first they said no refund on SDLT if Agreement is terminated, and then took two months to tell me to log a TR1 form to HMRC for refund. Is that true?

Please help!

davidmcn

https://forums.moneysavingexpert.com/discussion/5940983/no-refund-of-stamp-duty-if-walk-away-after-long-stop-date

You've posted about this before, and it sounded like your contract is either quite unusual or you've misunderstood it. It's difficult for us to advise without seeing what you've already agreed to. As we explained before, you don't pay SDLT until completion, but the reference to a TR1 suggests you have already completed a purchase? So is this about instalments payable after completion?

If you don't understand what's going on, it's probably best that you talk to your solicitor.

eddddy

ibuythings wrote: »

I bought an off-plan property howeverPractical Completion did not take place on the long stop date...

You use the term "Practical Completion" - presumably because the developer is using that term.

That tends to be a term used in building project contracts, and not in the sale/purchase of property.
(See: https://uk.practicallaw.thomsonreuters.com/6-107-7024)

You really need to get to understand the contract(s) that you have entered into.


My (sightly wild) guess would be that you've entered into a 'exotic' scheme of 2 or more contracts...

• One contract to buy a piece of land (or a lease on part of a building) - and this contract has completed

• Another contract for the developer to build a house on the land, or convert part of the building into a flat

ibuythings wrote: »

My solicitor said they will pass the case to their Litigation Dept. with a view to Court Proceedings now being issued to recover the full payment of the deposits.

Is the solicitor doing this because you asked them to?

Or because the solicitor feels you have a good case?

Unless you have a good case, this could work out very expensive for you.

stator

If you instruct the solicitors to take the developer to court, remember you will pay their costs unless costs are awarded against the other side


If the solicitors think you have a good case, you could always ask them if they are willing to act on a no-win no-fee basis

ibuythings

My solicitor did not mention it is a good case, I need to ask them for details.

ibuythings

Is the solicitor doing this because you asked them to?

Or because the solicitor feels you have a good case?

Unless you have a good case, this could work out very expensive for you.

It was my solicitor who suggested to pass the case to their Litigation Dept. for Court proceedings, they did not mention it is a good case, I'm not sure if they are acting on my interest.

andyf1980

There is very little that anyone on here can advise given the very limited facts. You really need to talk to your solicitor about it - that's what you're paying them for.

ibuythings

davidmcn wrote: »

You've posted about this before, and it sounded like your contract is either quite unusual or you've misunderstood it. It's difficult for us to advise without seeing what you've already agreed to. As we explained before, you don't pay SDLT until completion, but the reference to a TR1 suggests you have already completed a purchase? So is this about instalments payable after completion?

If you don't understand what's going on, it's probably best that you talk to your solicitor.

I posted another thread because the case has become complicated not only on SDLT but also the installments I have paid to the off-plan.

My solicitor said the structure of the purchase meant upon exchange of the Agreement, I also entered into the Lease, resulting in the payment of stamp duty & Land Registration fee. I cannot request refund on SDLT now because the Agreement has not been rescinded as developer did not accept the Termination and refuse to refund the installments.

ibuythings

andyf1980 wrote: »

There is very little that anyone on here can advise given the very limited facts. You really need to talk to your solicitor about it - that's what you're paying them for.

I'm worry my solicitor is not acting on my interest, they are developer's recommended solicitor.

andyf1980

ibuythings wrote: »

I'm worry my solicitor is not acting on my interest, they are developer's recommended solicitor.

Have you decided that you definitely don't want to proceed with the purchase?

Not sure if you have legal cover on your home insurance? If you do it would be worth trying to get some independent advice. If you genuinely want to pull out of the purchase I'd probably take independent legal advice anyway even if I had to pay for it.

davidmcn

ibuythings wrote: »

I'm worry my solicitor is not acting on my interest, they are developer's recommended solicitor.

Then go and see a different solicitor. We can't advise on e.g. whether your notices to terminate were valid, without seeing the contract.