How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Aston Lawyer Your Own Question
Aston Lawyer
Aston Lawyer, Solicitor
Category: Property Law
Satisfied Customers: 10797
Experience:  LLB(HONS) 23 years of experience in dealing with Conveyancing and Property Law
16368554
Type Your Property Law Question Here...
Aston Lawyer is online now

I have bought a apartment, paid 50% of deposit. However

This answer was rated:

I have bought a apartment, paid 50% of deposit. However developer have stopped the construction work for 4 months by now. The long stop date on contract is 2018 Dec. At the moment, are there anything i could do, perhaps to get refund of my deposit ?

Hi, I take it that your Solicitor has exchanged Contracts? Why have you had to pay 50% Deposit?

Kind Regards

Al

Customer: replied 1 year ago.
Hi, thats correct that contract have been exchanged
Customer: replied 1 year ago.
Thats the payment plan that i have to pay 50%upfront
Customer: replied 1 year ago.
Can you pls advise what i can do under this situation ?

Hi, thanks for your reply.

I am afraid that as you have exchanged Contracts, you are bound by its terms.

So, as with all new Builds, there is nothing you can do to put pressure on the Developer to build the Plot quicker, and provided they have built the property, ready for occupation by Dec 2018, that is all they are legally obliged to do.

In the meantime, I'm afraid you are not entitled to walk away and request your Deposit back. If you were to walk away, the Developer would be entitled to keep your Deposit, under the terms of the Contract.

I am sorry this is not the answer you were looking for, but it sets out the legal position.

If I have answered your question, I would be grateful I you could rate my answer.

Kind Regards Al

Customer: replied 1 year ago.
But what if the construction now have stopped, its unlikely they can deliver in time if the construction work have not continue ? is it still no action can be taken from my side?Would it helps you to understand better if i attach the contract for your reference ?In addition, i would like to check for the following points as well.1. Land charge - our priority n do we have precedence over as buyer myself?
2. What are the implications for me in the event that developer goes liquidates ?
3. What clause(s) on the contract can protect the interest of buyers interest ?
4. Is it all estate will come along with "the buyers company"
5. Which party is the 1st creditor in case the developer goes into administration ?
6. Could the buyers withdraw from the transaction n get back the money deposit due to the material change of design by the developer?
7. M i able to get back all the deposit + interest if the seller fail to complete the units after the Long Stop Date? What actions the buyers need to take thereafter?Thank you so much
Cherman

Hi, I confirm that legally, the Developer need only make sure that the property completes by the Long stop date, and if it is not ready by then, you would be entitled to walk away and request the return of your Deposit. But, you can only do this once the long stop date has arrived, I'm afraid.

I think I have answered your original question, and if you could rate my answer, I will then answer your additional questions free of charge. Kind Regards Al

Aston Lawyer and other Property Law Specialists are ready to help you
Customer: replied 1 year ago.
Hi, sure have rate 5 star for you. Look forward to your further feedbackAlso by all means, before long stop date, its not worth going to a solicitor to serve termination notice isnt it

Hi, thanks for rating my answer.

1. Your Solicitor will do a Land Registry official search in your name or the name of your Mortgage provider, a week or so before completion. In the meantime, your Solicitor can also enter an Estate contract on the Freehold title to protect you, but this is uncommon with new builds.

2. You would be entitled to walk away and you would need to check with your Solicitor that the Deposit was paid as stakeholder, meaning the Developer's Solicitor should be holding the deposit. Also, if the Developer is NHBC registered, you would also be protected, and be entitled to your Deposit back.

3 The Contract will state in one of the clauses that the Developer has until the long stop date to complete the Build. 4. I don't understand this question.

5. Secured creditors come first. Please speak to your Solicitor to verify what I say at question 2.

6 Speak to your Solicitor who needs to check the Contract but normally you can only withdraw if the material change reduces the value of the property.

7 You would be entitled to the Deposit and interest back. Your Solicitor would need to serve Notice on Developers Solicitor once the long stop date has arrived. Please note your Solicitor can not serve any Notice to terminate the Contract before the long stop date.

I hope this assists.

Kind Regards Al

Customer: replied 1 year ago.
Thanks a lot Aston:)

Thanks- you're welcome.