Landmark victory for developer after buyer could not complete
News Category: Industry News
Published: 10-Sep-2010
A property developer has won the right to get the full sales price from a buyer who did not have the funds to complete his purchase.
Anthony Finlay was taken to court by AMA (New town), an Edinburgh development company which had sold him a property for £149,000.
Mr Finlay had already paid a non-refundable reservation fee and a non-refundable deposit. They had exchanged contracts (missives in Scotland) and he had been due to move in to the property last December 3 but failed to pay on entry.
AMA sued him for the purchase price plus interest.
In court, Mr Finlay argued that where the seller retains title to the property, it cannot seek payment of the price.
But Sheriff William Holligan said: “Faced with an admitted breach of contract on the part of Mr Finlay, AMA are entitled to seek implementation of the contract by the way of payment of the price and that means seeking an order for payment.”
Similar cases are in the pipeline all over the UK, as purchasers found themselves victims of the credit crunch and unable to get mortgages after having agreed to buy and entering into contracts.
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