Can I pull out of sale?

S

shifers

Registered User
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Am in a situation where I had put a deposit on a new build last year (I had a 5% deposit).

Before I signed initial contracts early this year, the price came down by 10%, so was happy with that. However, I haven't yet signed the final contracts and my bank are now telling me that they'll give me a maximum of a 92% mortgage and also the interest rates are so high, my repayments would be higher than they were at the +10% amount.

So can I pull out now?

Now I'm guessing the answer to this is going to be 'check the contract you've signed' and I'll be doing this, but I'm just wondering if others are familiar with this dilemma.

I guess my fears are :
- Lose the 5% deposit I paid (may be necessary to resign myself to that)
- Developer takes me to court to force completion of sale.

Has the latter happened yet?

Any helpful advice appreciated!
 
"before I signed the initial contracts" and " I haven't yet signed the contracts"

Which is it ?? You either have or have not ?? If you have not signed contracts, you are entitled to your 5 % to be returned and you are under no obligation to go any further. As Clubman mentioned, ask your solicitor which should taker all of a few minutes and then decide.
 
Is the build under way. A lot of builds are not going ahead. Some builders are hanging on to keep the deposits as people cancel, and buyers are hanging on to see if the builds are cancelled so they will get their deposits back.
 
Monies paid on exchange of contracts which are legally binding. Ordinary deposits are not legally binding and either party can walk away from a transaction.
 
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