It states that if purchasers of off-plan residential properties fail to complete on transactions as those properties are completed, there may be legal conflict.
Disputes may also ensue, as prospective tenants of retail and other commercial properties currently being developed attempt to back out of contracts that commit them to lease space in those developments as they complete.
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Colin Young, property disputes partner at Boodle Hatfield, explained: “The contracts of most residential new-build developments are fairly clear-cut and deposits would be at risk.
Colin said that many purchasers forget that this might not be the end of it — they might be liable for any additional loss the developer makes from selling that property for less than what was originally agreed on.
He hoped property prices don’t fall too far, but there are developers who have explored their options over deals where buyers seem to have gone cold.
“Once the lockdown is over, we expect that buyers who should have already completed will start being asked to agree to a new timetable.”