Investors who try to renege on property deals in the wake of the recession are liable to face court orders to complete, lawyers warn.
Some property buyers who signed up for city apartments as prices soared are now trying to break their contracts due to drops in value or problems borrowing for a mortgage, reports the BBC. Many are under the impression they will lose only their deposit if they U-turn on a deal after exchanging contracts. But lawyers say this impression is false, and the legal obligation to complete the transaction was clear. "There is a worryingly widespread and entrenched belief among buy-to-let investors that if they decide to withdraw from a purchase for which they have exchanged contracts, that...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes