Quote:
Originally Posted by lovesquadsue
Well - I am currently investigating this with my agent at the moment as we have purchased a property on the Suleder development with a view of it being ready March 08. Obviously this isnt going to be the case and I am now thinking of getting us out there in January to assess our options rather than continuing with the Suleder purchase - there are a few other factors as well that have arisen now I can see actual 'reallife' photos of the development and not artists impressions! Anyhow, we have made the first payment of circa £18K including an initial reservation fee of £1000.00. Now, I think that a reasonable cancellation fee at this stage would be £1000.00 - the original reservation fee. Obviously if i was going to cancel on completion day I would expect to pay a higher cancellation charge - somewhere in the region of 10%-15% I would think is fair to all parties. In the contract (that i havent signed yet!) it states that there is a canx charge of 25% which I think is high. I will keep you posted on how I get on the the agent should we decide to cancel!
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If you have not signed anything yet you have no real contract and that means that BOTH of you can now opt out at a "reasonable" charge - there is no doubt that in the UK 25% charge would never stand up in court.
Do you have any letters from the developer stating the completion date.
Did the agent make any statements on delivery date.
Why do you think that 10% to 15% is fair to cancel, at any stage ???
Did you get any legal advice before sending your money.
Did you get a receipt for all the money paid.
Is there a penalty clause for the developer being late.
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