Property Contracts
In the contract of sale of a property, both vendor and purchaser can pull out at any point before the parties exchange contracts. Upon exchange, completion of the contract is binding on both parties and pulling out would be in breach of contract, entitling the other party to damages.
Breach of Property Contracts
A breach of the property contract can occur in many instances. Oftentimes, distinctions may be drawn between serious breaches, which will give the innocent party the option to continue or cancel the contract; and not so serious breaches, where the transaction can proceed. Examples of breaches include the vendor failing to provide vacant possession; or failing to sign and send off the necessary documentation in a timely manner. Alternatively, a purchaser may be in breach if they do not have funds to complete on the agreed date.
Generally, on breach, the penalty clause in the property contract will apply, where the parties are given a further period to fulfil their part of the bargain but, if they do not do so within the pre agreed timescale either side can end the contract, such that the vendor would be entitled to keep the purchasers deposit paid on exchange; re-sell the property; and either side can claim damages from the offending party for the losses they have suffered as a result.
A vendor’s losses can include additional fees flowing from the breach; penalties incurred for not completing a purchase in a chain; removal costs; and storage costs. They may also be able to claim interest at a penalty rate and any shortfall if a re sale of the property is less than the original.
Legal Advice and Representation on Breach of Property Contracts
Our barristers at Mercantile Barristers specialise in advising representing clients whether they are vendors or purchasers when there is an alleged breach of property contract.
Contact our Property Litigation Team today by filling in our Enquiry Form; emailing us at enquiries@mercantilebarristers.com; or by telephone on 0203 034 0077 and we would be happy to assist.
How Our Process Works
You can call, email, or fill out an enquiry form to tell us about your case. One of our specialist clerks will speak with you to make the arrangements to advance your case.
Our specialist clerk will match you with the barrister with the expertise to deal with all aspects of your case. They will also obtain and organise the papers the barrister will have to consider in your case.
Our clerk will agree the fee for your consultation with the barrister beforehand. The clerk will then arrange a convenient time for you to have the consultation by video call, telephone or in person.
In the consultation the barrister will assess your legal position, devise a legal strategy, and give you appropriate advice on the necessary next steps to achieve your objective.
Fill in the form below and one of our specialist clerks will get in touch.
