Sale Does not close what happens to the deposit

S

shankar

Guest
Hi all,
Sorry if i have posted this message in the wrong forum.I had gone sale agreed on my apartment and was buying another house.The sale was suppossed to close in october and then it did not close on that date as there was some delay in the house that i was buying .Unfortunately i had go home for holidays for few weeks and i had already informed my solicitor about this.When i came back the buyer of our apartment pulled out of the sale as a result i could not close the sale on the house that i was buying and the vendor forfieted my deposit of 33000.My solicitor did not say anything and does not give me any proper answers when i ask him about this.Is there any way i can get my money back or would the solicitors insurance cover up these kind of situation .Please any help and suggestions on this would be appreciated.
Thanks,
Shankar
 
Are you saying that the seller of the house you intended to buy has kept your deposit?

I presume that contracts were signed in both cases?
 
Hi ,
Thanks for your reply .Yes the vender that is the seller has kept the deposit and the house that i was buying was valued at 381000 an initial deposit of 5000 was given when i put the offer and the the other 10% when the contracts were signed .The deposit that the buyer had paid for my apartment is still with my solicitor is there any chance that i can get that deposit since it was the buyer of my apartment who in the first instance pulled out of the sale .

The situation is really making me very tense .I checked with other solicitor but they would not deal with the situation unless i get all the original documents and stuff from the current solicitor.

Please advice if can get some kind of legal advice on this from the Bar council.

Thanks,
 
1. Had contracts already been signed in relation to the sale of your apartment?

2. In relation to the purchase of the new property, you seem to have signed binding contracts with the vendor, but then pulled out of this purchase. This would seem to suggest that you are not entitled to a refund of your deposit in this instance.
 
Yes the contracts were signed i could not close the sale as the sale of my apartment fell through .
My question is am i entitled to keep the deposit that the buyer of my apartment has given because he pulled out of the sale saying he is not interested in the apartment anymore .Even he had signed the contracts at this stage .

Where does Indemnity Insurance come in the picture in these kind of situation .
 
If the buyer had signed contracts, then you should also be entitled to keep his deposit, assuming that you didn't break any of the terms of the contract.
 
shankar said:
My question is am i entitled to keep the deposit that the buyer of my apartment has given because he pulled out of the sale saying he is not interested in the apartment anymore .Even he had signed the contracts at this stage .
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In a word, yes (but the contract will determine that).

I am confused by your references to the Bar Council and Indemnity Insurance-do you fell it is your solicitor's fault that the sale of your own apartment fell through? If so, why?
 
Did you have a clause in your contract to purchase the house that it was dependent on the sale of your apartment. If not the two (purchase and sale) are not connected.
 
Like CCOVICH says – why do you think your solicitor should cover your expenses? Did they do something wrong? Why should their insurers be involved at all? Why should your misfortune be covered by his insurance?

It seems as if you were very unfortunate – you had signed contracts for a sale and signed contracts for a purchase. Your sale fell though and as a result your purchase also fell through. You were very unfortunate but this is your problem – it is not the solicitors.

You do seem very confused which is why it is so hard to work out what is going on but you are very likely entitled to keep the deposit that the proposed purchaser paid for your apartment – if there were signed contracts.

I think it’s a hard lesson – the chain situations that are happening all the time now are unbelievably dependent on trust – it only takes one link to break and the whole chain is in trouble. And it does not matter if there are signed Contracts a lot of the time – what is the point in trying to sue someone who cannot afford to buy a house to compel them to complete?

My own view is that people should sell first, have money in their pocket and then buy next. It is awkward, it means renting or moving home to Mother and storing furniture but it avoids this scenario.

mf
 
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