1.10 Freehold Estates - Delayed Completion Remedies Flashcards
What remedies are available on late completion?
Completion date stated (NO qualification)
- Damages
- Claim considered in subsequent award
- Open contract > S entitled to interest, in possession during delay period, pays fee to B (UNLESS B at fault)
- Open contract > B entitled to income, pays outgoing obligations
Completion date qualified (time is of essence)
- Damages
- Rescission
- Termination
What remedies are available where there is no completion?
Specific performance
- Discretionary equitable remedy
Damages claim
- Credit towards deposit forfeited by S
Rescission
Vendor + purchaser summons
- Parties can apply for court deliberation on dispute (NOT apply for specific performance)
What Buyer’s remedies are available post-completion?
(Contract discharged => Merged with purchase deed)
Breach of covenants of title
- Full guarantee
- Limited guarantee > Only sue to extent of breach
- NO guarantee > NO remedy
Misrep
- Fraud
- Negligent
- Innocent
Misdescription
- Error in particulars
Non-disclosure
Rectification
- Contract
- Purchase deed
How must defaulting party pay compensation to innocent party?
More defaulting party must pay compensation
Compensation = Interest (reduces damages)
- Daily rate (contract/alternative rate) (Law Society Gazette) > Completion on next working day
- If Buyer defaults + paid deposit => Pay interest on [purchase price LESS deposit]
- If Seller defaults => Pay interest on whole purchase price
- UNLESS leased property => Seller can claim rent in lieu of interest
What is required for Notice to Complete?
Time is of essence
Send Notice on/after completion date
Must complete within 10 working days > 1 day after notice served
UNLESS B cannot raise funds;
- Contract terminated
- S to sell elsewhere
B to pay S outstanding deposit monies
- 10% deposit total immediately on receipt of Notice
What is required for liens?
S’s lien over property
- Outstanding balance after completion
- Equitable charge (court order for sale/set aside contract)
- Protect by notice (registered land)/C(iii) land charge (unregistered land)
B’s lien over deposit
- Returnable to S’s solicitor (agent)
- Protected by registration
What is required for liens?
S’s lien over property
- Outstanding balance after completion
- Equitable charge (court order for sale/set aside contract)
- Protect by notice (registered land)/C(iii) land charge (unregistered land)
B’s lien over deposit
- Returnable to S’s solicitor (agent)
- Protected by registration
