What Happens When Contract Lapses?

[firsttimebuy]

I put a deposit down on a house last year and the contracts are signed. Due to an enforcement order against the developer by the county council we haven't been able to close on the house. The contract lapses in early November, there is a pending court date for the end of September and it now seems unlikely that the issues will be resolved before our contract lapses. What happens in this instance would be automatically get our deposit back?

 

[mf1]

Are you sure it lapses? If it definitely lapses then the terms will be quite clear in the Contract. Otherwise, there must have been some communication between the builders and all the purchasers? What are the builders saying?

mf

 

[firsttimebuy]

The builders want us to close now as the house is finished but we have taken legal advice and will not close until all issues are resloved on the enforcement order as there is a pending court date. We signed the contract in June 2006 and the builders have until Novemeber 2007 to complete the house. I am just wondering if anybody has been in the same situation and what happened?

 

[mf1]

But surely it depends on the nature of the problem? You may not or may not have a strict entitlement not to close. Tactically, you should not close until the issue is resolved. But, legally, that may not be the case. Do you want to pull out of the contract? If yes, have you asked (builder/your own solicitor) if you can?

mf

 

[firsttimebuy]

The reason we have not closed until all the issues are resolved between the developer and the co council is that the council have advised us that if we do close on the house they can then issue us with the enforcement order as you can imagine we do not want to end up in court. We do not want to pull out of the contract but if the issues are not resolved before the end date of the contract what happenes then?

 

[smartgirl]

there shouldnt be a lapse date on the contract. there is date by which the builder must complete though, with new builds it can be anything between 18 and 24 months. there is also a condition in the contract that you withdraw should there be an issue between you and the builder that cant be resolved. if you close and the enforcement proceedings are still not sorted, they can attach to your house and will show up on closing searches should you ever try to sell.