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Clare, Solicitor
Category: Law
Satisfied Customers: 35574
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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I exchanged on a property in March 2014 on the understanding

Customer Question

I exchanged on a property in March 2014 on the understanding that the vendor would give vacant possession on November 28th 2014. There tenant is still in possession and the property has gone up by 75k plus. The purchasers are trying to get out of the sale and understand that if we go to court they will be responsible for my damages and they hope it will be considerable less so they will be able to sell the flat for a higher price.
Surely if we go to court under specific performance the increase in the value would be part of my settlement plus my accomodation and storage costs.
What do you recommend as my solicitor believes that the court case could be favourable to the vendor and feels i should pursue trying to negotiate to purchase the property.
Mark Reuben
Submitted: 4 years ago.
Category: Law
Expert:  Aston Lawyer replied 4 years ago.

Hello and thanks for using Just Answer.

My name is ***** ***** am happy to assist you with your enquiry.

I am slightly unsure what position you ar ein- when you exchanged Contracts, wasn't the price fixed at that stage?

I look forward to hearing from you.


Customer: replied 4 years ago.

yes, i purchased the property through an estate agent for 285k and exchanged at the price and passed over 5% deposit which was released to the vendor as we had a delayed completion.

Now the property is worth 375k.

The delayed completion was to give the purchaser time to get the council tenant out.


Expert:  Aston Lawyer replied 4 years ago.

Hi Mark,

Thanks for your reply.

Unless I am missing something, provided you exchanged at the price 285K, you can legally complete on this Price, and as they have breached the Contract, due to their Tenant still being in possession, you can claim damages off them!

Just because the market value of the property has increased since you exchanged Contracts does not give the Seller the right to demand a higher price from you- they are legally bound to complete on the price agreed at the date you echanged Contracts.

Please let me have your comments.

Kind Regards

Customer: replied 4 years ago.
I know this but they are not prepared to complete as they view it wiser to go to court and get damages. My question is :
If we go to court am I entitled to the extra money the property has gone up by as I would have to buy a property which has also increased in value or would it just be a case of damages
Expert:  Michael Holly replied 4 years ago.
Dear *****
The point will be to you in the position that you would have been in had the contract not been broken.
Both the specific performance and breach of contracts roads lead to the same place. Unless the property is unique then damages will be awarded , the breach of contract entitles you to claim the value of a similar property now or, to put it differently, the cost of rectifying the breach now. Either way the increase in value in included as part of your claim.
I hope this helps. If there are any further points please reply
Best wishes
Expert:  Clare replied 4 years ago.
The point is that you can insist on the property being transfered to you at the price agreed - that is why it is called Specific performance