Buyers and sellers of land often want to get out of, or avoid, the contracts they had entered into. The circumstances vary. However, two of the most common reasons are a change in the market since the contract was made and misrepresentation; at times there is an overlapping of the two. A good example of this situation these days is off-plan sales and purchases of residential property. A purchaser might have entered into a contract to purchase one or more flats off-plan only to find that the market values drop before completion. This poses a problem specifically if the fall in value means that the purchaser is unable to get a mortgage offer he was counting on to fund the purchase. Another oft incurred example is when a purchaser contracts to purchase while relying on a statement he later claims to be false, e.g. with respect to a boundary issue or the threat of development. In such cases of alleged misrepresentation, there is usually a tussle about whether the contract can be set aside and the deposit returned to the purchaser.
These issues are particularly prevalent in Tricity at present given the current scenario of over-supply and subsequent falling prices of newly built homes. This has led to obvious tension building up between home builders and purchasers with the former fixed on completion of contracts and the latter wanting to set them aside and getting back their deposits.
We have the experience of representing and advising both buyers and sellers in claims pertaining to the specific performance and avoidance of contracts, deposits and damages.