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Developers Sue Prospective Buyers For Backing Out


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HOLA441

http://news.bbc.co.uk/1/hi/northern_ireland/8237366.stm

The developers say the clients involved signed contracts for apartments but failed to meet the deadline to complete the deal.

Since the peak of the housing boom in spring 2007, when work on many new homes began, property prices have plummeted by about 30%, making them worth much less than the original selling price.

Edited by gruffydd
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"People are left in a very difficult position - they signed a pretty watertight contract two and a half years ago," he added.

"They were not to know what would subsequently happen and now find themselves in a position of great difficulty in getting a mortgage or not getting one at all."

A spokesman for the Ormeau Bakery development said they had honoured their commitments and no further action would be taken if their contracted purchasers did the same.

Cut and dried. Maybe those purchasers should have wasted some time on this website in 2006/07.

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Dr Robin Davidson booked an apartment at the Ormeau Bakery development back in 2007.

The Ormeau Bakery development has been completed recently He said the apartments were finished in July, and within weeks Big Picture Developments had served writs on clients who had failed to complete sales.

He described the move as a major shock and said it had left many potential buyers frightened.

Dr Davidson said: " This is very difficult for buyers who simply cannot raise the money for a mortgage and who cannot make up the difference between the price they signed up for and the price the apartments are worth now.

"People are left in a very difficult position - they signed a pretty watertight contract two and a half years ago," he added.

"They were not to know what would subsequently happen and now find themselves in a position of great difficulty in getting a mortgage or not getting one at all."

Maybe they should have thought of that before they signed the contract? D'oh

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Thats the same panglossian nonsense that got these idiots into this position in the first place

(sorry I thought of a load of polite replies, but you deserve that)

You may have mistaken some bakery-related puns for actual opinion. On the other hand, Neverland may be trying to have his cake and eat it.

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You may have mistaken some bakery-related puns for actual opinion. On the other hand, Neverland may be trying to have his cake and eat it.

:unsure::huh::o:blink::lol::lol::lol::rolleyes:

I'm oviously on my rant soap box today, apologies

Really totally fecks me off when people sign contracts and then want to get out of it just because its not in their favour...

...feckless kids in adults bodies...

[insert typical tory boy rant as appropriate]

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Why are the developers suing - don't they know the market is recovering and prices are on the up?

Surely both the buyers and developers would each want the properties so they can take advantage of the rise in prices and make a nice profit? :blink:

That's a mince pie

Edited by gruffydd
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http://news.bbc.co.uk/1/hi/northern_ireland/8237366.stm

The developers say the clients involved signed contracts for apartments but failed to meet the deadline to complete the deal.

Since the peak of the housing boom in spring 2007, when work on many new homes began, property prices have plummeted by about 30%, making them worth much less than the original selling price.

I suspect theres more to this than meets the eye... when the existing contratc is not completed the remedy I should think as with english contracts is that the developer should then remove the contract, and re-sell in the open market. If he sells for less and after taking the previous purchasers deposit the net loss vs the previously contracted price is £100k then he should be able to sue for £100k..... without selling the flat on there has been no loss other than whatever the ongoing penalties are ( normally % over base for the outstanding amount)..... I have been looking out for one of these coming to court in the Uk... it'll be interessting to see what happens in ireland.

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