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  • FIRST POST
    • Ultra64
    • By Ultra64 14th May 18, 1:44 PM
    • 24Posts
    • 15Thanks
    Ultra64
    Vendor / developer has pulled out after exchange
    • #1
    • 14th May 18, 1:44 PM
    Vendor / developer has pulled out after exchange 14th May 18 at 1:44 PM
    Hello all,

    I need advise. I put down a reservation fee down in November 2016 on a new build property that they said would be ready for completion of February 2017. We exchanged contracts in January 2017.

    The development is about a year and 5 months behind schedule now, and was all ready to complete any day now, as other people in the block had been served the completion notice. Out of the blue I get a phone call this morning from the estate agent saying they have a received en email from the developer's solicitor saying they are terminating the contract with me!!!

    Does anyone know where I stand legally? If this definitely gets cancelled and I lose the property I 100% intend to take the developers to court.

    I have wasted a year and half waiting for this property to be finished, I have purchased furniture to go in this particular property, I have solicitors fees I still need to pay, I have had to extend my mortgage 3 times which has cost me extra money, and the biggest one out of all of them is property prices have risen, I will no longer be able to get a property like this one again now.

    Any advise and help would be gratefully appreciated.

    Many Thanks
    Last edited by Ultra64; 14-05-2018 at 1:46 PM. Reason: spelling mistakes
Page 1
    • Gary123456790
    • By Gary123456790 14th May 18, 1:54 PM
    • 564 Posts
    • 360 Thanks
    Gary123456790
    • #2
    • 14th May 18, 1:54 PM
    • #2
    • 14th May 18, 1:54 PM
    You need to advise your solicitor of the situation and ask them to check the contract to see what you can do. Contracts can and do have additional terms put into them so you'd need the solicitor to see exactly what is written in the contract to determine if you have a claim against the developer.
    • davidmcn
    • By davidmcn 14th May 18, 2:02 PM
    • 9,076 Posts
    • 9,671 Thanks
    davidmcn
    • #3
    • 14th May 18, 2:02 PM
    • #3
    • 14th May 18, 2:02 PM
    Does anyone know where I stand legally?
    Originally posted by stuco36
    Well, your solicitor will know. Have you spoken to them yet? Any attempts to terminate the contract will be via them rather than the estate agents.

    If this definitely gets cancelled and I lose the property I 100% intend to take the developers to court.
    Even if the contract permits them to terminate it? Might not be much you can do.
    • Ultra64
    • By Ultra64 14th May 18, 2:29 PM
    • 24 Posts
    • 15 Thanks
    Ultra64
    • #4
    • 14th May 18, 2:29 PM
    • #4
    • 14th May 18, 2:29 PM
    You need to advise your solicitor of the situation and ask them to check the contract to see what you can do. Contracts can and do have additional terms put into them so you'd need the solicitor to see exactly what is written in the contract to determine if you have a claim against the developer.
    Originally posted by Gary123456790
    My solicitors are not very good. They really sound like they don't care and there doesn't seem to be any sense of urgency with them. I called them straight away, but they said the person I need to speak to isn't in today.
    • ciderboy2009
    • By ciderboy2009 14th May 18, 2:35 PM
    • 475 Posts
    • 415 Thanks
    ciderboy2009
    • #5
    • 14th May 18, 2:35 PM
    • #5
    • 14th May 18, 2:35 PM
    My solicitors are not very good. They really sound like they don't care and there doesn't seem to be any sense of urgency with them. I called them straight away, but they said the person I need to speak to isn't in today.
    Originally posted by stuco36
    Did they say when the person you need to speak to was back?

    If only a few days then I can understand the apparent lack of urgency - it would probably take a fair bit of time for a different solicitor to go through the file and work out what is what in it.

    I assume you are using proper solicitors rather than a cheap conveyancing company?
    • Ultra64
    • By Ultra64 14th May 18, 2:35 PM
    • 24 Posts
    • 15 Thanks
    Ultra64
    • #6
    • 14th May 18, 2:35 PM
    • #6
    • 14th May 18, 2:35 PM
    Well, your solicitor will know. Have you spoken to them yet? Any attempts to terminate the contract will be via them rather than the estate agents.

    Even if the contract permits them to terminate it? Might not be much you can do.
    Originally posted by davidmcn
    Yes, as it is a matter of principal. I know that may cost me money and is fairly stupid, but I have wasted almost a year and half, constant stress, constant promises broken from the developer. I am also now priced out of the property market.
    • Ultra64
    • By Ultra64 14th May 18, 2:40 PM
    • 24 Posts
    • 15 Thanks
    Ultra64
    • #7
    • 14th May 18, 2:40 PM
    • #7
    • 14th May 18, 2:40 PM
    PS My solicitor are saying they haven't recieved the termination notice yet, even though the estate agent said they are definitely on the mailing list. (again, my solicitors have been pretty rubbish over the last year and a half).
    • Ultra64
    • By Ultra64 14th May 18, 2:42 PM
    • 24 Posts
    • 15 Thanks
    Ultra64
    • #8
    • 14th May 18, 2:42 PM
    • #8
    • 14th May 18, 2:42 PM
    Did they say when the person you need to speak to was back?

    If only a few days then I can understand the apparent lack of urgency - it would probably take a fair bit of time for a different solicitor to go through the file and work out what is what in it.

    I assume you are using proper solicitors rather than a cheap conveyancing company?
    Originally posted by ciderboy2009
    They should be back in tomorrow hopefully. Yes they are a proper solicitor.
    • Davesnave
    • By Davesnave 14th May 18, 2:50 PM
    • 26,679 Posts
    • 96,126 Thanks
    Davesnave
    • #9
    • 14th May 18, 2:50 PM
    • #9
    • 14th May 18, 2:50 PM
    Yes they are a proper solicitor.
    Originally posted by stuco36
    I hope they weren't recommended by the developer.

    To be honest, some of the things you might like to claim against the developer for, like furniture not now needed, could never be something they'd be liable for, nor could they be responsible for changes in the market. Throwing good money after bad out of anger would be counter-productive and silly. Focus on the contract itself.

    I doubt if you are 'priced out of the market,' but you might now be priced out of the market you aspire to. It has happened to many of us.
    A garden is never so good as it will be next year....
    • walwyn1978
    • By walwyn1978 14th May 18, 2:50 PM
    • 536 Posts
    • 507 Thanks
    walwyn1978
    Does your contract with them make any reference to the developer having a termination clause? If so, what does it say?
    • mrschaucer
    • By mrschaucer 14th May 18, 2:53 PM
    • 579 Posts
    • 705 Thanks
    mrschaucer
    Do you have a copy of the contract you signed/exchanged with the developer?
    • Ultra64
    • By Ultra64 14th May 18, 3:16 PM
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    Ultra64
    In the contract it says anticipated completion date: 31st March 2017 (it was previoulsy February) So well over a year behind shedule (when I could have been buying a different property).

    It says 'Termination Date June 2017 (11 months ago). I would rather they would have done it then rather that waiting to the week everyone else was moving in to tell me they are stopping the contract.

    They even sent me the lease to sign last week.
    • davidmcn
    • By davidmcn 14th May 18, 3:24 PM
    • 9,076 Posts
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    davidmcn
    And what does it say about the Termination Date?
    Last edited by davidmcn; 14-05-2018 at 3:37 PM.
    • Aylesbury Duck
    • By Aylesbury Duck 14th May 18, 3:24 PM
    • 2,402 Posts
    • 3,185 Thanks
    Aylesbury Duck
    Answer the questions in posts #10 and #11. Then people may be able to provide a little more help.
    • moneyistooshorttomention
    • By moneyistooshorttomention 14th May 18, 3:24 PM
    • 17,139 Posts
    • 47,389 Thanks
    moneyistooshorttomention

    I doubt if you are 'priced out of the market,' but you might now be priced out of the market you aspire to. It has happened to many of us.
    Originally posted by Davesnave
    CORRECTION; Priced out of the market they are actually already safely in - until the developer did the dirty on them.

    OP - do you have the legal add-on on your household insurance? Do you have a good campaigning local newspaper that might be interested? Do you know why they are trying to pull this stunt on you?
    Never doubt that a small group of people can change the world. It's the only thing that ever has.

    Extinction Rebellion
    • mrschaucer
    • By mrschaucer 14th May 18, 3:27 PM
    • 579 Posts
    • 705 Thanks
    mrschaucer
    What are the precise conditions attached to this "termination date"? For example, are the developers permitted to terminate the contract at any time after that date? Before that date? What?
    • moneyistooshorttomention
    • By moneyistooshorttomention 14th May 18, 3:30 PM
    • 17,139 Posts
    • 47,389 Thanks
    moneyistooshorttomention
    If I were in OP's position I'd be looking up the company accounts (easy enough online) and seeing if I could get "a feel for" whether the developer is trying this on because they are teetering on the edge of solvency.

    Followed by finding out whether those buyers like myself that were already part-way through buying (ie had already exchanged) would get "first refusal" from insolvency people if they are called in - and at a cheaper price than we were due to pay in the first place.

    I'd be putting something on my local Facebook page saying "They're trying to do this to me. Is anyone else in the same position - and fancy meeting up for a drink?"
    Never doubt that a small group of people can change the world. It's the only thing that ever has.

    Extinction Rebellion
    • Ultra64
    • By Ultra64 14th May 18, 4:20 PM
    • 24 Posts
    • 15 Thanks
    Ultra64
    It says the contract can only be cancelled in the event that notice to complete is not served by 27th October 2017. The developers solicitors have provided a new anticipated completion date of the 29th September 2017 ( originally February 2017). Under the terms of the new agreement, the latest date at which completion can take place is 10th November 2017.
    • Ultra64
    • By Ultra64 14th May 18, 4:25 PM
    • 24 Posts
    • 15 Thanks
    Ultra64
    If I were in OP's position I'd be looking up the company accounts (easy enough online) and seeing if I could get "a feel for" whether the developer is trying this on because they are teetering on the edge of solvency.

    Followed by finding out whether those buyers like myself that were already part-way through buying (ie had already exchanged) would get "first refusal" from insolvency people if they are called in - and at a cheaper price than we were due to pay in the first place.

    I'd be putting something on my local Facebook page saying "They're trying to do this to me. Is anyone else in the same position - and fancy meeting up for a drink?"
    Originally posted by moneyistooshorttomention
    I looked them up a while ago and there isn't much on there. When I spoke to the company they have their warranty under (as there were major snagging issues when I last saw it). They said sorry we took a while to get back to you, but we got confused if they were with us or not, as their name has changed. So they have changed the company name....not a good sign.
    • Cheeky_Monkey
    • By Cheeky_Monkey 14th May 18, 4:39 PM
    • 1,879 Posts
    • 4,111 Thanks
    Cheeky_Monkey
    It says the contract can only be cancelled in the event that notice to complete is not served by 27th October 2017. The developers solicitors have provided a new anticipated completion date of the 29th September 2017 ( originally February 2017). Under the terms of the new agreement, the latest date at which completion can take place is 10th November 2017.
    Originally posted by stuco36
    The way I read it, as 27 October 2017 is long gone and you have never received a Notice to Complete, the Contract says that it can therefore be cancelled!
    I used to be indecisive - now I'm not so sure
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