Property not built to original spec

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This topic contains 14 replies, has 7 voices, and was last updated by Profile photo of Inez Inez 9 years, 2 months ago.

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  • #53174
    Profile photo of Anonymous
    Anonymous
    Participant

    I originally purchased a property, off plan, to use as a holiday home. It has took about 4 years, has had 3 different developers involved but is actually now finished. All the houses were built roughly to spec but mine, the only one out of 55 to suffer this, was completely changed in both size (now smaller) and layout, with the garden about half what is was meant to be. This was due to an issue with the land. I have been offered a refund, in writing (email) by the second developer and the current developer originally said they would honour this. This so far, hasn’t happened so I am taking up a legal case.

    The house is finished as is the development and the new developer is busy selling the remaining 17 that are unsold.

    Has any one else been in this situation? The development is legal etc. but it seems crazy to go through the courts if I could sell the property. Can I do this, as I have never completed and so far have paid a 30% deposit.

    Thanks

  • #75264
    Profile photo of Anonymous
    Anonymous
    Participant

    It’s good that you have the offer of a refund in writing, that your lawyer can press for. If you have to go to court, cancelling the Contract, I doubt you would still have the option to sell. Hopefully one of our forum lawyers can give more legal info. All the best.

    p.s. If you lawyer is connected to the developer & you’re not getting anywhere, it might be best to change lawyers.

  • #75265
    Profile photo of Inez
    Inez
    Participant

    You can ‘sell’ or actually transfer to another party the private contract you have, however under law this is subject to 7% transfer tax so you need to find out if it is worth you doing this.

    As Suzanne says, better to try and cancell the contract, get your money back or ask them to transfer you to one of the unsold houses if you prefer.

    Good luck

  • #75266
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks for the quick reply Suzanne!

    I have changed lawyers already becuause the first one was not very good!!

    The court case has not started yet, I am waiting for dates.

    My thoughts were that the developer would try and sell my house and then offer me my deposit back, they obviously don’t want to send the money sooner than they have to. My guess is that they will sell all the other properties that they have and then offer to settle at the 11th hour.

    I just wondered if I can try and get the place sold, as it isn’t what I bought or wanted, whilst the court case is going on. I would have thought the developer would rather do this too!

  • #75267
    Profile photo of Anonymous
    Anonymous
    Participant

    Digger – you don’t have to sell the property via the developer only, if you haven’t already cancelled the contract. Might be worth doing some research to see what it’s now worth & how sales are there. Maybe Inez can give you some more advice in this regard. It would be a shame for the developer to benefit from any increase after having your money for 4 years.

  • #75272
    Profile photo of Anonymous
    Anonymous
    Participant

    I have met a few people who have completed on the complex and I have been told they are generally selling for more than original prices. I haven’t actually cancelled the contract as yet.

  • #75279
    Profile photo of Anonymous
    Anonymous
    Participant

    @digger wrote:

    Can I do this, as I have never completed and so far have paid a 30% deposit.

    Thanks

    Sure, you can sell it but you will have to pay CGT at 18% on the profit.

  • #75282
    Profile photo of Anonymous
    Anonymous
    Participant

    I doubt there will be a profit but thanks for the advice!

  • #75285
    Profile photo of Anonymous
    Anonymous
    Participant

    digger

    was the size you expected written in your own contract? If so, it sounds like a clear breach of contract and i would have thought you can sue if all else fails. I am in a similar situation, we have at least two clear breaches of contract. The court system at the moment is painfully slow due to the backlog, but i’m told we will get justice in the end, if we don’t die of old age first!!

  • #75286
    Profile photo of Anonymous
    Anonymous
    Participant

    Goodstitch

    The property is around 5 sq m smaller but the real issue is that it used to have a large balcony looking onto a golf course facing south. his has been completely changed in that the house now faces north looking onto a traffic island as does the new smaller balcony. The main bedroom also had a balcony looking onto the course, this is now on the second bedroom looking onto the traffic island. The house had a large south facing garden, which is now less than half the size and has been replaced by a court yard at the rear of the property. I have all the original plans, plus some ammended plans that were still not used. The plans for the final build never appeared!

    I wanted this as a holiday home, it is 2 years late and not what I signed for.

  • #75289
    Profile photo of Anonymous
    Anonymous
    Participant

    digger

    what a con!, sounds like a job for a very good lawyer. The size issue i would think will depend on what details were included in the contract with regards to garden/balcony. I’m no expert, but i dont think the 5m sq would stand in court as a big enough reduction in size to claim breach of contract, but the other issues sound like they should?

    The appartment we were offered after the developers sold off the one in our contract is over 40m sq smaller than in our contract, and no discount offered!!!

  • #75297
    Profile photo of mariadecastro
    mariadecastro
    Participant

    Please have answers below in green:

    originally purchased a property, off plan, to use as a holiday home. It has took about 4 years, has had 3 different developers involved but is actually now finished. All the houses were built roughly to spec but mine, the only one out of 55 to suffer this, was completely changed in both size (now smaller) and layout, with the garden about half what is was meant to be. This was due to an issue with the land. I have been offered a refund, in writing (email) by the second developer and the current developer originally said they would honour this. This so far, hasn’t happened so I am taking up a legal case.

    The house is finished as is the development and the new developer is busy selling the remaining 17 that are unsold.

    Has any one else been in this situation? The development is legal etc. but it seems crazy to go through the courts if I could sell the property. Can I do this, as I have never completed and so far have paid a 30% deposit.

    Regardless that commitment in writing done by the second developers you may have refund rights out of the wording of the contract you signed and that legally, it is more sure that needs to be honour by the current developer. Try a strong out of courts negotiation with an independent lawyer and if you do not get it that way, go to Courts.

  • #75304
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks for the advice Maria, I am also looking at the possibility of selling the property as well

  • #75311
    Profile photo of Anonymous
    Anonymous
    Participant

    digger
    Only one question
    If the property sizes and the fact that is has a much smaller garden effect your ability to sell it on the open market
    If the contract sizes shows a larger property then surely this may make it difficult to mortgage as the survey would fail.
    Anyone else like to comment on this. ?
    Could be interesting as no doupt there are hundreds like this case.?

    Frank 8)

  • #75318
    Profile photo of Inez
    Inez
    Participant

    Yea I totally agree with you -in the current mnarket you need the best aspects you can get to sell for a reasonable price – unless you are willing to lose money on it!

    I have had si,ilar situations, the worst being a penthouse 3 bed 2 bath on the plans at 95 built with 130 wrap terrace – the terrace was corret but the interior was no more than 70m if that. Valuers whilst they use the nota simple for their report will actually go and measure the util utilized space and that is then used for the actual valuation. So a smaller property will value less as its euros per square metre!

    Its why townhouses value less as there is so much unused space such as cupboards, staircases etc that are not taking into consideratioon – as well as basements with or without windows! Its quite a formula they use but it does make sense!

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