Buyer pulls out of house purchase-Costs

[obiter dictum]

i am due to be exchanging contracts this friday and moving to ireland. My house in the UK had an agreed sale 6 weeks ago. I have agreed to purchase a house in ireland and had instructed a solicitor in the UK to handle the sale of my house for which the proceeds were being used to purchase the house in Ireland. i have also had to instruct a solicitor in ireland to handle the house purchase in ireland.

 

The estate agent in the UK has received notification this morning that the buyer has pulled out of the agreement to buy my UK property. The estate agent has told me that i am going to be liable as well for my own solicitors fees as well as the ireland solicitors fees for land searches etc as they have carried out the work

.

 

On a side note as to my divorce settlement, i am being hit with £400 a month Spousal maintenance until my house is sold

 

I have been left to foot the bill of two lots of £750.00 solicitors costs. total £1500, removers cost as well as they were booked for friday etc

 

Can i claim against the person who puled out of the sale at the last minute to claim these costs. Contracts were being exchanged this friday so has a verbal contract been formed

 

thanks

[BazzaS]

i am due to be exchanging contracts this friday and moving to ireland. My house in the UK had an agreed sale 6 weeks ago. I have agreed to purchase a house in ireland and had instructed a solicitor in the UK to handle the sale of my house for which the proceeds were being used to purchase the house in Ireland. i have also had to instruct a solicitor in ireland to handle the house purchase in ireland.

 

The estate agent in the UK has received notification this morning that the buyer has pulled out of the agreement to buy my UK property. The estate agent has told me that i am going to be liable as well for my own solicitors fees as well as the ireland solicitors fees for land searches etc as they have carried out the work

.

 

On a side note as to my divorce settlement, i am being hit with £400 a month Spousal maintenance until my house is sold

 

I have been left to foot the bill of two lots of £750.00 solicitors costs. total £1500, removers cost as well as they were booked for friday etc

 

Can i claim against the person who puled out of the sale at the last minute to claim these costs. Contracts were being exchanged this friday so has a verbal contract been formed

 

thanks

 

Verbal contract for sale of land?

See LP(MP)A 1989 S2(1)

http://www.legislation.gov.uk/ukpga/1989/34/contents

 

However, you must also consider Helden v Strathmore Ltd:

http://www.bailii.org/ew/cases/EWCA/Civ/2011/542.html#para27

 

"It proceeds on a fundamental misunderstanding of the reach and purpose of that section, a misunderstanding, it is fair to say, which appears to be not uncommon. Section 2 is concerned with contracts for the creation or sale of legal estates or interests in land, not with documents which actually create or transfer such estates or interests. So a contract to transfer a freehold or a lease in the future, a contract to grant a lease in the future, or a contract for a mortgage in the future, are all within the reach of the section, provided of course the ultimate subject matter is land. However, an actual transfer, conveyance or assignment, an actual lease, or an actual mortgage are not within the scope of section 2 at all"

Edited August 26, 2014 by BazzaS
Typo of the year for the LP(MP)A corrected

[Ganymede]

Getting back on topic, I don't think that the OP has any claim against the proposed buyer that pulled out as contracts had not been exchanged.

[AndyOrch]

Thread moved to the appropriate forum.

 

Regards

 

Andy

[citizenB]

Ok, I am unapproving 3 posts as they contribute nothing to this thread.

[steampowered]

Unfortunately contracts for the sale of land have to be in writing, so you cannot claim on the basis of a verbal contract.