header-logo header-logo

30 May 2014 / Alec Samuels
Issue: 7608 / Categories: Features , Property
printer mail-detail

The deposit! Don't let this happen to your client

Alec Samuels provides some points of reference for trouble-free conveyancing

In the usual situation the deposit is paid by the purchaser P to the vendor V on the exchange of contracts, and the transaction runs smoothly. Complications may arise where, as a term of the contract, V (or P) has to obtain planning permission or V has to build the flat and make it ready for occupation. When the planning permission will be issued is uncertain until it happens; when the flat will be ready is uncertain until it happens. The deposit was to be paid 60 days after planning permission was obtained. Planning permission was obtained. V then served a five-day notice making time of the essence and requiring payment of the deposit. P did not pay.

The Court of Appeal held that as a matter of law the payment of the deposit is a condition of the contract, a fundamental term. The five-day notice was fair and reasonable, and made time of the essence. Failure by P to

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Clarke Willmott—Alexia Haines & Kelsey Wells

Clarke Willmott—Alexia Haines & Kelsey Wells

Clarke Willmott strengthens Birmingham private client team with double appointment

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

From global fraud cases to fishing off-grid, Mishcon de Reya’s chair of dispute resolution Hugo Plowman discusses mentors, management switching off

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law announces partner promotion and new hires amid a record year for enquiries

NEWS
Restrictions on workplace non-disclosure agreements could make settlements slower, more complex and more expensive when reforms expected in 2027 take effect
Private prosecutors face closer scrutiny under Crown Prosecution Service guidance designed to strengthen accountability and consistency when intervention is requested
Foreign states cannot necessarily claim immunity for cyber operations launched abroad against computers in Britain, following a divided Supreme Court ruling
Defendants who make unsupported complaints about their lawyers risk losing legal aid while confiscation proceedings continue without representation
Lawyers advising Russian clients face different sanctions restrictions across the UK, EU and US, despite their shared objective of increasing pressure on Russia
back-to-top-scroll