Developer Part Ex Help

Cameron1590_2

Hello,

We agreed with BDWH to do a part exchange “extra” for a new build property.  

We signed the sales agreement which stipulated that BDWH would market our property at £275k for six weeks. If no buyer was secured in six weeks, then they would become our guaranteed buyer at £260k along with a £10k cash incentive towards stamp duty. 

Any sale agreed in the first six weeks above the part ex price of £260k would be given back to us as if the transaction was a traditional sale. (Subject to EA fees of £3k). 

Unfortunately, one Estate agent has put the property online today at £270k. We have spoken to someone at BDWH who are “looking into what went wrong” and said they would “get the price amended to reflect the price in the agreement (£275k)” however we are concerned that if the property does sell in the next six weeks, there is a potential for people to have seen the property at the lower price and make a lower offer as a result. 


Surely BDWH have broken some form of consumer code or regulation here? I am not really sure what legislation to look at in order to bolster my argument for compensation. 

I guess if the property did sell for £275k once their fees are deducted for the EA (£3k) we are probably £2k down as a result of their error. 

Any help would be appreciated. 

Thanks,

Malty 

eddddy

I guess you'd have to show that you suffered a financial loss as a result of the developer's error / breach of contract.

I think it will be difficult to prove (on the balance of probabilities) that somebody would have offered more if it had been advertised at £275k.

But maybe you could try to use it as leverage to get a "gesture of goodwill", like some free upgrades with the new house.

Cameron1590_2

eddddy said:

I guess you'd have to show that you suffered a financial loss as a result of the developer's error / breach of contract.

I think it will be difficult to prove (on the balance of probabilities) that somebody would have offered more if it had been advertised at £275k.

But maybe you could try to use it as leverage to get a "gesture of goodwill", like some free upgrades with the new house.

After reflecting, I think you are probably right Edddy. I think we will simply ask if they will do anything and go from there. Ultimately the property had been on the market for five weeks beforehand with our own EA at “full market value” for £280k and we hadn’t got one viewing so I doubt it will even sell on the six weeks offered but never say never. 

user1977

If it's almost immediately going to be amended to £275k I can't see it will make much difference - and even if somebody queries it, they can be told (honestly) that it was just an error.