Katherine Waller investigates the potentially “puzzling” area surrounding notices to complete
The economic crisis has triggered a flurry of case law where either developers or purchasers have failed to complete on sale and purchase contracts, mainly due to funding issues. These cases are particularly prevalent in “off-plan” purchases, where buyers exchange contracts on a property that is not yet built.
Off-plan purchases have gained momentum recently, particularly with overseas buyers. Take the residential apartments at Battersea Power Station: nearly all of the Phase 1 apartments have been sold, predominantly to overseas investors. With off-plan transactions flourishing, the recent case of Urban I (Blonk Street) Ltd v Ayres and another [2013] EWCA Civ 816, [2013] All ER (D) 77 (Jul) highlights the risk for buyers who are relying on mortgage finance. The case is also important as it sets out the effects of serving a notice to complete and what constitutes a repudiatory breach to entitle an innocent party to terminate the contract.
The facts
Mr and Mrs Ayres entered into a contract on 25 January 2007 with Urban I (the developer) to purchase
