sold land now developer not interested

O

osuldo

Registered User
Messages
18
hi there,
wondering if i could get some advice,i sold an acre of land that was zoned in a village just over 12 months ,lots of intrest from different parties at the time and agreed a sale with a builder that seemed honest for a fair price.Contracts were drawn up and he paid 10%deposit to my soliciter sale was subject to permission being applied for and granted on no less than 2 houses(not a problem as spoke to planner and she said 3 even 4 houses allowed if done nicely zoned low density).Problem is builder has not applied for permission at all and dont think he will as the market has slowed alot where this is.There was a 12 month limit for completion with possiblity to extend if planning was delayed.Soliciter thinks he is entitled to his deposit back(could this be true) or is my soliciter incorrect as i dont believe this could be true as i kept my part of agreement.Would love advice from all.
many thanks
 
Re: sold land now developer not intrested

your contract should incude a clause in respect of non performance. The answer purely relates to what way your contract was written. If done correctly yes you shouldnt have to give back the deposit but it really does come down to your contract.
 
You have stated in your original post that land was sold subject to "permission being applied for and granted".

If this is the case in the contract, the purchaser is entitled to his deposit back as he hasn't applied for permission. This is covered in the contract.
 
permission was applied for but it was an incompleted application so he had to reapply but he has not done so (told professional developers dont make those mistakes).Would this change things ? as i am prepared to wait if he will apply again.
 
Have you contacted any of the other interested parties to see if they would be willing to do a deal now that the original purchaser doesn't look likely to develop. Even if the value of the plot has decreased by 10% it may be better to get the 90% of the old value than have an asset not bringing in any money for you.
 
osuldo said:
permission was applied for but it was an incompleted application so he had to reapply but he has not done so (told professional developers dont make those mistakes).Would this change things ? as i am prepared to wait if he will apply again.
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Why not try and get the permission yourself and sell a ready to go site. Surely this would bump up the price or worst case senrio make it more salable.

Jaid
 
ubiquitous said:
The oldest trick in the book... You should have said "take it or leave it"
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Why is that a trick? If I was buying a site there is no way I would pay development prices for it until planning was granted.

What vendors should do is go away and get planning themselves and then offer a "ready to go" site with planning, that a builder can move into within weeks, so if the market is hot they can maximise on it straight away.
 
MrKeane said:
Why is that a trick? If I was buying a site there is no way I would pay development prices for it until planning was granted.
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A contract subject to planning permission leaves the purchaser holding all the aces and the vendor in a correspondingly weak position.

In a strong market, the property will have gained in value by the time the vendor gets paid, and the benefit of the gain in value will accrue to the purchaser.

In a declining market, there is little to stop the purchaser from deliberately stretching out the planning application process almost to ridiculous lengths, and then ultimately pulling out of the deal on the basis that the planning application has failed.

In both scenarios, the vendor is powerless to withdraw from the contract even if they suspect that the deal is going nowhere.
 
does it specificy planning for anything in particular ? if not then why not apply yourself for planning for something like a car park or a fence and then make him buy ?
 
hi there,
planning was for two houses or more,i know i will get planning for at least 2 maybe 3.If i apply and get planning for the houses can i force him to buy?My soliciter has a 10% deposit but is not very helpful at the minute he is doing a big job till christmas and very hard to tie down.Thanks for all yer help.
 
osuldo said:
hi there,
planning was for two houses or more,i know i will get planning for at least 2 maybe 3.If i apply and get planning for the houses can i force him to buy?My soliciter has a 10% deposit but is not very helpful at the minute he is doing a big job till christmas and very hard to tie down.Thanks for all yer help.
Click to expand...

If you get planning it makes the site more saleable. Nearly sure you cant force the builder in to buying.

Jaid
 
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