Question from cha, What Recourse Do Buyers Have if a Seller Breaches a Property Purchase Agreement in Scotland?
Answer from AI:
In Scotland, once missives (a series of letters forming a contract) for the purchase of a property are concluded, the agreement is legally binding. This means that both parties are obligated to fulfill their respective parts of the contract.
Legal Consequences of Breaching the Contract
If the seller breaches the contract by selling the property to another party after the conclusion of missives, the buyer may have several potential remedies. These could include:
- Damages: The buyer could potentially sue the seller for breach of contract and seek damages. This could include any financial loss suffered as a result of the breach, such as costs incurred in arranging finance, legal fees, and any difference in value between the contract price and the value of a comparable property.
- Specific implement: This is a court order requiring the seller to fulfill their obligations under the contract, i.e., to sell the property to the buyer as agreed. However, this remedy is not often granted in property transactions as it requires the court to supervise the transaction, which it is generally reluctant to do.
It’s important to note that anyone can submit a planning application for any property, regardless of ownership. However, this does not give them any legal right to purchase the property. If the planning application is approved, it may increase the value of the property, but it does not affect the legal obligations of the seller under the concluded missives.
Seeking Legal Advice
Given the complexity of property law and the potential financial implications of a breach of contract, it would be advisable for the clients to consult with a legal professional. A solicitor can provide personalized advice based on the specific circumstances of the case, including the terms of the missives and any evidence of the seller’s intentions.
Please note that this information is a general guide and not a substitute for professional legal advice. For more information on property law in Scotland, you may want to visit the Law Society of Scotland’s website or the Scottish Government’s guide to buying a home.