Cancelling Buying

Discussion in 'Mortgages and buying and selling homes' started by kaner, 15 Jun 2007.

  1. kaner

    kaner Guest

    my partner & I paid €18K deposit on a new property over a year ago which still won't be ready for a few months.

    There is now a 2nd hand property, slightly bigger and with a garden on the same development for sale for €30K less than the property we paid our deposit on.

    We would like cancel buying the uncompleted property and buy the 2nd hand one - we fully accept that we will lose our Deposit of €18k but our solicitor has been told by the developer that they will sue us if we don't buy the original property.

    Can they force us to go thru with buying the place we paid the deposit on?
     
  2. Madangan

    Madangan Frequent Poster

    Posts:
    372
    Does not look good Im afraid.

    You will be in breach of contract and the builder can (a) forfeit your deposit and (b) sue you for damages ie his losses. So if he cant sell to someone else for the same price as you were paying he can sue you for the difference plus additional legal costs,estate agent costs interest on his borrowings...he would have to prove these losses but once he can you are liable. In recent years they did not bother as they invariably sold at a higher price but now its a different market.

    Also a third option is to sue you for specific performance..i.e bring you to court and get a court order forcing you to complete..this is pointless with people who cannot afford to buy but in your case you can you simply have changed your mind.

    Your best option if you really want to pull out is to negotiate with the builder,ascertain whether he is likely to be able to re-sell easily and then make him an offer,he wont necessarily want to drag you through the courts either even though he may be prepared to do so.