Judges do not flinch from enforcing contracts for the sale of land and that is a good reason why you should never sign on the dotted line before taking legal advice. In a cautionary tale that underlined the point, a man who reneged on a deal to buy a family home for £5 million was ordered to pay seven-figure compensation to the disappointed vendors.
The buyer had not viewed the property before contracts were exchanged and had dealt with the vendors through an intermediary whom he had never previously met. However, he had signed the contract in person and a judge rejected claims that the intermediary had acted without his authority or that the contract was rendered void when the latter agreed to accept a secret commission.
After the buyer pulled out and the deal was aborted, the vendors eventually sold their home for the lower price of £4.2 million. After lawyers launched proceedings on their behalf, they were awarded £800,000 to reflect the difference between the two figures and further substantial sums to cover their additional expenses, including the costs of bridging finance occasioned by the breach of contract. Although the precise amount of compensation had yet to be calculated, the vendors’ lawyers estimated their total award at £1.5 million.
For advice on residential property matters, contact Adam Oleskow, Partner 0121 746 3300 a.oleskow@sydneymitchell.co.uk or a member of staff in our conveyancing department.
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