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planning permission

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gina32 | 18:41 Fri 13th Oct 2006 | Law
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i am(hopefully) selling my property and the buyers are having it pulled down and building another house in its place, the estate agent tells me that the buyers have already submitted plans, costing �1000, to the local council but then someone else told me that until they own the place they cant do that ,who is right? no contracts between us have yet been signed.
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Your buyer.
they can put provisional plans in for whatever they want.
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but at �1000 id hardly call it provisional, would you?
They've simply taken a risk. Very unwise of them before exchange of contracts, because this suggests the value of your plot of land as a PLOT is higher than the value of the existing site with your current house on it. Property Developers do this all the time. They are presumably intending to get OPP for a much bigger house on the site, which when built will enhance the overall value to more than what they are paying you plus the cost of the big new house.
They can do it. Equally you could pull out, apply for Planning Permission yourself, and sell it to a builder. Either seek advice from a Planning Consultant about unlocking the hidden value of your plot, or just get on your selling to your buyer.
You might want to consider overage, just make sure you have a lawyer who is experienced in this and knows what they are doing!

Try these for general info...

http://www.tltsolicitors.com/legal-update/Prop erty-Update/P4776.asp

http://www.rics.org/Management/Disputeavoidanc emanagementandresolution/Disputemanagementandr esolution/barnesjlsilkin001.html
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thanks to you all this has answered a few questions that i didnt realise needed answering!
A planning application is only 280 quid ... where's the other 720 come from?
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i dont know, any ideas?
The other money will have been spent on site survey and architect's fees for the drawings accompanying the application. You can call at your local Planning Department and see the scheme if you wish. There is a limit to the size of a building that can replace an existing house and in simple terms it is about 1 3/4's of what exists at the moment. Your buyer's application could be refused in which case they might not complete the purchase, or it might go to appeal. The cost of your site to your buyer is what they pay you plus demolition costs, rearrangement of services, access, etc. Be careful about this overage business, in ordinary circumstances it is considered a blight and the insertion of such a covenant could make your property completely unsaleable.
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thanks for all the info, we havent include any "terms" in the sale but as i said before i was curious as to how they could put in planning permission without buying it, seems a lot of money to pay out when anyone could easily pull out of the sale
Your buyer may delay exchange until he has achieved planning permission.This is not a straightforward procedure and expect delays.If there are lengthy delays then re-appraise the sale price.He seems very trusting as you could pull out at any minute and leave him with costs.It also seems that you have a verbal agreement which could be argued in court and you may be sued for pulling out.You really should see a solicitor on this matter and get a proper written contract with a time expiry.regards,triplesvopen
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doesnt everyone have a verbal agreement when they agree a sale price, if that was the case whenever someone pulled out they could take them to court, thus being the reason they cant do anything by way of suing me as no cantracts have yet been signed

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