Property developer wins £150k legal battle against backtracking buyer

Property developer wins £150k legal battle against backtracking buyer


A property developer has won an important legal battle against a buyer who pulled out of a sale just before completion, according to a report in the Edinburgh Evening News.

AMA (New town) Ltd – an Edinburgh based property development company – took action after Mr Finlay had agreed to buy a property, before declaring that he was unable to proceed with the purchase.

The firm had agreed to sell the property at McEwan Square in Fountainbridge to Mr Finlay for £149,000.

He had already paid a non-refundable reservation fee and a non-refundable deposit.

Mr Finlay was due to move into the property on December 23 last year, but was unable to complete the purchase.

Lawyers for AMA sued Mr Finlay for the full payment of £149,000, and the case was heard at the Court of Session in Edinburgh.

This type of case has become more common following the housing market crash and subsequent credit crunch, when potential home buyers – who had put down large deposits on properties – suddenly found themselves unable to obtain mortgages from high street lenders, leaving property developers in a difficult position.

Sheriff William Holligan said: “Faced with an admitted breach of contract on the part of Mr Finlay, (AMA) are entitled to seek implement of the contract by the way of payment of the price and that means seeking an order for payment."

AMA has been trading since 1983 and even has its own dedicated construction company that works on its developments. 

By Dawn Murden

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