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Alex J.
Alex J., Solicitor
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Experience:  Solicitors 2 years plus PQE
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A property developer terminated the exchange of contract 2

Resolved Question:

A property developer terminated the exchange of contract 2 weeks before completion of the new built. He refunded my deposit. Can I take him to court?
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Assuming he did not have the right to terminate the contract then yes you can sue him for any losses that are a naturally occurring consequence of the breach. This would include legal fees, waster mortgage costs, survey costs etc If you want to sue for specific performance, i.e an order that the developer must complete the contract that may be more complicated. Why did the developer pull out? Is the development going ahead? Kind regards AJ
Customer: replied 1 year ago.
Thank you Alex,
It is complicated. Exchange of contract happened late June 2015
On 11th July 2015, they agreed (verbally) to install themselves the flooring (tiles of my chosen from an external provider instead of their own choices of tiles).
On 2nd of August 2015, they gave me a quote for the installation only of the flooring (I was paying for the tiles directly). That quote was £5,300 (installation only). In comparison, their previous quote to buy and install their own tiles was only £4,300 (tiles and installation). Therefore I questioned the making of that quote. They never gave me a straight answer. Instead they said they could no longer install the tiles because of the date of completion. Note that I was never given a completion date. They never agreed either to meet or discuss this issue.
On 27th of August 2015, I received an offer to terminate the purchase immediately without condition and to refund my deposit. To protect my interest I accepted their offer on the 1st of September 2015, being the expiration date of the offer. However, instead of refunding my deposit straight away, they sent me a Termination Agreement imposing new condition to the offer. I refused to sign it. On the 27th of October 2015 (7 weeks after my acceptance of their initial offer), I eventually received my deposit back without signing the termination agreement. Has it happens, the apartment was then sold (£32,000 cheaper) to one the their directors on 29th of October 2015 (being the sale completion date).
My thinking is as follows:
- Their initial offer was cancelled by sending a subsequent Termination Agreement. This would be supported by the fact that they refunded the deposit 7 weeks after acceptance of the initial offer, while it should have been immediate.
- They instructed the sale of the apartment while still being under contract since I received back my deposit less than a week before the director paid for the property.I have now introduced a small claim court to receive the monies paid to them and other costs. However, the small court claim will not deal with the compensation of breaking the contract.My question is the following: After the small court claim, (successful or not), could I still issue civil case against the property developer for breaking the contract?I attached for your attention 3 letters. 2 were sent to the directors of the company, the third one was sent to their solicitors.Kind regards,
David
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. I will review this and revert to you as soon as possible. Kind regards AJ
Alex J., Solicitor
Category: Law
Satisfied Customers: 3614
Experience: Solicitors 2 years plus PQE
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