Developers and builders seek legal action to enforce contracts ditched through lack of finance
Developers and builders are increasingly seeking to force0 homebuyers to complete property deals which they have abandoned in the recession, according to the BBC.
Prices of flats have fallen 19.5% from peak to trough in England and Wales and many investors hoped they could walk away from a bad deal losing only their deposits.
But lawyers told BBC News that the court could force buyers to complete the contract even if they could not get mortgage finance.
"Such actions were rare in the boom times when finance was readily available and the value of property was ever-increasing," said Paul Lewis, a partner in commercial litigation at Gordons law firm in Leeds.
"But with the economic downturn, builders and developers are now seeking legal advice on ways to enforce the contract or at least seek advice on how to recover their losses."
He added that judges would only make the order if an award of damages was not adequate and that suing was normally the better option.
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