Samuel Okoronkwo Jr. held two consultations with the client regarding an off-plan property purchase in the North of England. The client entered into an Agreement for Lease in May 2020, paying a deposit of £27,400 toward a premium of £162,000. The contract included a longstop date of 31 October 2023, after which the client could rescind if completion had not occurred. On the final day, the client’s solicitor served a rescission notice by fax and email at 16:53. The developer later rejected the notice and issued a Completion Notice on 21 December 2023, which the client’s solicitor disputed.
The client has since learned that the property is complete, but his mortgage lender will not fund the purchase. He cannot afford to proceed and seeks to recover the deposit. Samuel reviewed the Jr. conveyancing file and confirmed that the rescission notice was validly served under the contract terms and deemed received on 1 November 2023. As the Completion Notice was served outside the permitted timeframe, it is invalid.
The client is concerned about liability for completion and whether the rescission was effective. He also queried whether his solicitors acted negligently in the handling of the notice.
Samuel advised that the rescission was valid and the client is entitled to recover the deposit. He explained that the matter would likely fall within the intermediate track, with fixed recoverable costs depending on whether it settles or proceeds to trial. He recommended invoking the ADR procedure under the contract to compel resolution by an independent expert, and if refused, issuing proceedings with a claim for costs on an indemnity basis. Samuel revised his earlier view on professional negligence and concluded that the solicitors acted reasonably. The client will now consider whether to proceed with Samuel or his existing solicitor.
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