Singing Pig

Hi Friends

Want some advice.

I brought an off plan appartment with this company 2 years ago for 192K, with 15% discount. Paid a 2k deposit and further 8% as agreed. However, flat has not been released. There was a 1.5 year delay. Now they tell us that the new face value would be 161K. Obviously there is a lot of bad press about them.

How does one pull out of this deal before further mortgage is taken up only to find that the appartment will sell for 125k or less and me losing all my money. Are there people specializing contracts and finding a clause in my favour to come out of it at this stage.

Any advice would be welcome.

Hi there

I think your best course of action is to speak to the solicitor acting for you (or if they were recommended by Morris, go to another firm).  Go through the contract and any marketing literature/specifications etc you were given to see if there is anything in there about completion dates.

Given they are 18 months late and still not delivering on the contract, I would say that you have a case to argue that the contract has been frustrated.

Have you actually exchanged contracts? If so, was this a conditional or full exchange? Given the fact that it was an offplan purchase, it is likely that you would have had to exchange without a mortgage offer as most offers are only valid for a few months.  If you have exchanged conditional on you getting a satisfactory mortgage then you should find that most mortgage lenders won't lend to you given the drop in value and therefore you cannot complete.  This should let you out of the contract, but only if it was a CONDITIONAL exchange.

The alternative is to try to get out due to contract frustration due to the unacceptable delay in delivery.  You will probably lose any deposit/fees paid over but it could be a lot less costly than being forced to complete on a property that is only worth a fraction of the contract price.

It is also worth considering a class action - if you can get hold of the contact details of other purchasers facing the same problem you might stand a better chance as a group than an individual.

 

Thanks, that was useful.

Unfortunately, the contract is UNconditional.

Where does that put me ?

I have actually read the contract and it does not even give the date of completion. Only their original letter in which they sold me the deal gives the date.

Thanks Michelle.

Make yourself bankrupt? emigrate? get yourself a decent solicitor before you sign the contract next time and don't get overtaken by greed

 

Chas

HI, there isn't a great deal you can do.  Michelle gave you some good advice, however, I don't think the courts would frustrate the contract; frustration is a remedy that is awarded in exceptional circumstances.  I don't think your cirumstances are exceptional; how many off plan investments arrive in on time.  The best thing you can do is on completion, get rid of it at the best price you can.  Unfortunately, you will have lost alot of money.  There is a guy on here called Rialto, read through his threads before you ever consider again investing in property.  David

Hi,

Instruct a solicitor now, with a view NOT to completing on the contract. 

Thanks David

There was sound advice in your earlier thread. I have gone through what you said in the later thread and the truth is that WAtson Brown solicitors acted in Moris properties favour and not mine. I have been adviced to bring Watson Brown to the consumer council and efforts are being made.

 

 

However, may I state here that instead of sending me PMs , please post here all of you people. Atleast, no one else will get suckered into this again. I have recieved no fewer that 19 PMs , everybody asking if I knew more people, so that they could get together for colective action. Please post here and discover each other. Morris are dishonest and let us honest folks get together and sue them. UNITED WE STAND, DIVIDED WE FALL(FAIL).

Max Gold Associates are a firm of solicitors who are suing MPs for about 50 clients. I have contacted them and they are willing to act for me for a fraction of the cost. However,  think we have to be bold and seek a further review of their promotional material they sent. I have already sent a copy to FSA.  HOWEVER, I CANNOT SUCCEED ALONE. IF, FSA got some 50 copies of the fraud/scam Morris have put on you, they will be forced to act.

 

I am also contacting my local MP to endorse my views and would strongly suggest that everybody does that.

 

Hope this makes sense.

Hi,

Am I pleased Singingpig is back !!!!!!

 

Also pleased that you are being positive and proactive about all of this, and I really hope all works out.  The reason why I switched my advice to you (i.e. don't complete) is because I read an article about Morris re: police investigation.  I really would not complete on this contract, and I don't think Morris arguments etc would stand up in court.  That's if he had the nerve to force you to complete... ask your solicitors and see what they say.  GOOD LUCK David

Keep us informed of how you go too...