Property Developer pulls out of house purchase 2 days before completion. Absolute nightmare.

housebuyer143

pretamang said:

What does your solicitor say about the limited company?

Since it was a brand new company with no assets did they secure a guarantee from the top company to cover any losses?

This! Mortgage lenders typically require personal guarantees from the directors, I imagine for this very reason. 

Without this I doubt there is anything nothing to sue them for as the company will just fold. 

pinkteapot

With a normal (individual) buyer, you'd sue them for your additional costs (above and beyond the 10% deposit they paid you that you keep). To that end, make sure you keep receipts, emails, anything else in writing relating to your costs (e.g. removals charges). 

However, as others say, this may be more complicated in the case of a company that may or may not have assets. 

You're extremely unlikely to find anyone else here who's been in this situation. You really need to get your main advice from your solicitor (and, as you say, a litigation solicitor once your conveyancer has pursued all the routes they can, like the Notice to Complete).

But do keep us posted because this is utterly awful and we'll all be rooting for you. I'm so sorry it's happened.

If all legal routes fail to get you anywhere, then I'd be posting (100% factually and unemotionally) on their social media and going to the local press, especially if they're advertising heavily in your area. But you don't want to go down that route until you've tried legal routes in case it hampers your case. 

user1977

housebuyer143 said:

pretamang said:

What does your solicitor say about the limited company?

Since it was a brand new company with no assets did they secure a guarantee from the top company to cover any losses?

This! Mortgage lenders typically require personal guarantees from the directors, I imagine for this very reason.

That's a somewhat different risk though, both in terms of the amounts involved and the likelihood of a loss arising. From the OP it sounds like the solicitor had pointed out the creditworthiness of the purchaser, and I suspect a request for a guarantee may well have been refused anyway.

sheramber

pretamang said:

What does your solicitor say about the limited company?

Since it was a brand new company with no assets did they secure a guarantee from the top company to cover any losses?

The solicitor was suspicious but , unfortunately, the OP  and his mother decided to go ahead.

Our solicitor was more suspicious as the developers were using a newly set up limited company for the exchange. Not wanted to start the whole process again and lose out on the new build, we accepted, but were dubious and not happy at all.

mrschaucer

Just to confirm, did the newly set up limited company forward 10% of the sale price to your solicitor on exchange?  
And your solicitor forwarded 10% for the house you are buying?

angelasocks

So sorry RoyallyFlushed I'm sure posting will help clear your head.  Wish I had some kind of legal advice that would help but I'd be way out of my depth.  I also think the Ombudsmen would be a good place to start when you're feeling a bit stronger. 

user1977

angelasocks said:

I also think the Ombudsmen would be a good place to start when you're feeling a bit stronger. 

Which ombudsmen?

angelasocks

user1977 said:

angelasocks said:

I also think the Ombudsmen would be a good place to start when you're feeling a bit stronger. 

Which ombudsmen?

https://www.tpos.co.uk/consumers/how-to-make-a-complaint    - will it do any harm to ask for advice?

user1977

angelasocks said:

user1977 said:

angelasocks said:

I also think the Ombudsmen would be a good place to start when you're feeling a bit stronger. 

Which ombudsmen?

https://www.tpos.co.uk/consumers/how-to-make-a-complaint    - will it do any harm to ask for advice?

What do you think the agent has done wrong here? At most they may have overplayed the creditworthiness of the purchasers - but it looks like the OP and their solicitor had already figured out the risks of contracting with a shelf company and decided to go ahead anyway.

angelasocks

I don't know it's a complex situation.  If the OP is certain the EA has done nothing wrong then ok, but if they are in any doubt it's worth checking out, at least that is what I would do - but I'm not you.