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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3652
Experience:  Solicitors 2 years plus PQE
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on a industrial property purchase the buyer made a verbal agreement

Resolved Question:

on a industrial property purchase the buyer made a verbal agreement and a handshake to pay a deposit.
the buyer has pulled out of the sale as he does not want to puchase
he is demanding his deposit back
is he entitled to his deposit even though it was agreed verbally and with a hand shake ?
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Alex J. :

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. I am afraid that the buyer would be entitled to the return of his deposit for two reasons: 1) You would have needed to expressly agree in either writing or verbally that the deposit was non refundable - without this deposit is assumed to be refundable 2) Under S.2 of the Law of Property (Miscellaneous Provisions) Act 1989 can- a contract for the disposition can only be concluded in writing. What you may be able to claim is the reasonable expenses that you have incurred as a result of entering into the arrangement.

Alex J. :

Do you know why the buyer has withdrawn?

Customer:

Hi, the buyer claims he could not afford it which is totally untrue he just didn't want to purchase it.

Customer:

The deposit was agreed verbally

Alex J. :

Hi,

Alex J. :

Thank you. When the deposit was paid was their any email to say it was conditional up x or that it was non refundable or that he had x days to complete the purchase

Alex J. :

?

Alex J. :

Have you suffered any loss as a result?

Customer:

there was no written confirmations all verbally but solicitors of both parties where aware and on completion deposit to be deducted from sale price.

Alex J. :

Was a solicitor holding the deposit?

Alex J. :

Ultimately you have the control as you are holding the deposit. If you refuse to return it, he has to sue you, but bare in mind he has strong grounds to sue as you cannot prove the deposit was agreed to be non -refundable. It is your word against his.

Customer:

the property in question was agreed at 550k i eventually sold it at 310 k so yes losses incurred due to buyer 'dragging his feet 'over the purchase as this was best price i could get after the 18months after completion date

Alex J. :

It has to be worth writing to state your intention to keep the deposit and if he objects then you can write back and explain the you have suffered a loss and expect some payment to be made and use this as the basis of a negotiation?

Customer:

My company that owned the property and the deposits paid to was entered into liquidation last September due to a debt to Revenue & Customs where does this stand on him claiming as there is no assets in the company and the liquidator is in the process of winding the company up but i have not declared this deposit to him ?

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