Misrepresentation in failed property transaction?
Discussion
Hypothetical* question with a bare minimum amount of information because it’s definitely not* still ongoing
A property developer advertises (new) properties for sale with certain terms and features. You make an offer to purchase which is accepted.
Through routine searches / enquiries it is found that a material part of the property is in fact not legally sound - mortgage lender would not accept the terms that are being offered because part of the contract does not conform to CML guidelines and, furthermore,there is clear evidence that they do not have clear legal title over all of the property that is being offered for sale
Sale falls through because developer / their representative is not willing to modify the defective contract
Is there a case for negligent / fraudulent misrepresentation even though exchange of contracts has not taken place? To recover costs thus far?
Or is that the point of a buyer’s enquiries and you’re s
t out of luck?
A property developer advertises (new) properties for sale with certain terms and features. You make an offer to purchase which is accepted.
Through routine searches / enquiries it is found that a material part of the property is in fact not legally sound - mortgage lender would not accept the terms that are being offered because part of the contract does not conform to CML guidelines and, furthermore,there is clear evidence that they do not have clear legal title over all of the property that is being offered for sale
Sale falls through because developer / their representative is not willing to modify the defective contract
Is there a case for negligent / fraudulent misrepresentation even though exchange of contracts has not taken place? To recover costs thus far?
Or is that the point of a buyer’s enquiries and you’re s
t out of luck?Atomic12C said:
Your property transaction solicitors should be well up on the knowledge regarding this.
Give them a call and you should get a direct answer.
Yeah fair play. It hasn’t actually fallen through yet but I can see it coming judging by the complete lack of action on the other side Give them a call and you should get a direct answer.
offer/acceptance would be subject to contract. If you don't get to exchange of binding contracts then you won't have any claim under contract law, because you weren't induced into entering into a contract as a result of the 'misrepresentation' (if there was any). Did you put down any deposit?
hutchst said:
offer/acceptance would be subject to contract. If you don't get to exchange of binding contracts then you won't have any claim under contract law, because you weren't induced into entering into a contract as a result of the 'misrepresentation' (if there was any). Did you put down any deposit?
Absolutely fantastic, I can piss money up the wall all day long making enquiries etc on a property that is falsely advertised and just need to suck up the legal bill. There was a small deposit which I’d hope would be returned but who knows.
Edit - don’t take my tone as not appreciative of your advice, I’m just so beaten down by all of this b
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