Developer fails to pay.... Help?

[junction26]

Contracts were exchanged last year for the sale of my house and land. Developer now saying cant get money to pay. This is a medium sized Midlands based firm with several assets. Monthly penalties began to incur from May this year at a set sum, they have also reneged on this. Several breaches of contract have now come to light as they have not kept me fully informed as per contract. Contract expires November 08.
What redress do I have.... dont have any large pots of cash left after all this! ? Stat Demand for smaller amount first? to test waters? or go for big one? Cant afford �60k to sue and likelihood of them just folding and doing them a favour is probably high!

junction26 07/10/2008

[jen78]

Did they pay over a deposit on exchange of contracts? If so, what percentage of the purchase price did they pay over?

Has this been transferred to you?

So you exchanged last year, was the completion date fixed or was there a longstop date as your question refers to monthly penalties, which would assume the contractual completion date had passed, or a longstop date or similar?

Has any notice to complete been served as I note that you say that the contract expires in December.

Normal notices to complete give around 10 working days (depending what was in the contract) for completion to take place or the seller can rescind (walk away from the contract) and keep the deposit.

There is usually an entitlement for a 10% deposit allowing the extra to be claimed should they have paid a lesser sum on completion.

If you go after them for breach of contract then the remedies available if successful are described here...

http://www.wheelerslaw.co.uk/site/library/comm ercialgeneral/remediesforbreachofcontract.html

Some info about enforcing court orders relating to money...

http://www.hmcourts-service.gov.uk/infoabout/e nforcement/index.htm

[jen78]

You can also keep an eye on the company , if it's a limited one in the UK, and any insolvency proceedings here...

http://wck2.companieshouse.gov.uk/5899892697b3 82bdb23011c478cab7c6/wcframe?name=accessCompan yInfo

[junction26]

Deposit roughly 20% paid last year which also bought outright part of the site (where rd access is to be made by demolishing house) the fact that they now own this nullifies the access to my land. A longstop date of november was written in to allow them to gain full planning on my existing Outline. They have received planning approval but in their own name and for a larger site. contract was for the reserved matters on my site alone.So they are in fact "in Breach of contract".

[buildersmate]

Oh dear. You mean your solicitor allowed you to enter into a contract where they bought part of the site, and contracted to buy the rest but on a longstop date.
Now they have reneged, so you can't get access.
This whole forward transaction is all going to have to be fought in the courts, or reversed back out again.
Sorry but I can't see a cheap way out for you.
In the first instance try the line that your solicitor is at fault for contracting in a manner that allowed the possibility of this happening. Complain to the partner in charge first, then to the Law Society.

[junction26]

Thanks for your advice Buildersmate, as you can see, I relied on a top firm of solicitors to do this right, as I clearly have no knowledge of property dealing. Lesson learnt. It was all done in the same deal arranged by the land agent and the solicitors.In whom I now dont have confidence and hence asked on this site. Im so confused dont know how to do or where to go now.Would you try for a stat demand as well as challenging the lawyers? and do I have to pay the rest of the solicitors bill and the land agent?