New China Town Liverpool Development: Is your Deposit at Risk?13 Dec 2017
It has been published in the press that China Town Development Company Limited (part of the North Point Global Group) has run into trouble and faces litigation from Liverpool Council. In their press release dated July 2017, the Group confirmed that it will seek to dispose of its property interests in the development. Anyone with sums invested in the development might have a claim against the developer and their professional advisor(s).
Here, solicitor Kathryn Parrish offers her expert insight into the potential options available.
Option 1 – Bring a claim against the Developer
While this course of action is relatively straight forward, practically speaking, the developer is unlikely to be “good for the money”.
Option 2 – Bring a claim against your conveyancing solicitor
The viability of this option may depend on the answers to the following questions:
• How well did your solicitor advise you on the risks of this transaction – particularly in relation to the structure of the transaction relating to the use of your deposit?
• Did your solicitor tell you the deposit was much higher than the normal percentage of the purchase price and that it would be released in order to fund the development?
• Did your solicitor register your interest against the relevant property title, so that any future purchaser would buy with notice to your interest in the property?
Option 3 – Bring a claim against your financial advisor/introducer
A financial advisor is under wide-ranging duties pursuant to the Financial Services and Markets Act 2000. Again, the viability of this option may depend on the answers following questions:
• Did your advisor receive commission for the advice from the developer?
• Did your financial advisor/person that recommended the scheme to you properly represent the scheme and exercise reasonable care and skill when advising you?
• Did they advise you as to the risk in buying a property off-plan?
Kuits has already been instructed to act on behalf of an investor in relation to this development. If you have concerns, please do not hesitate to call us on 0161 838 7807 to discuss your position and potential litigation. We anticipate that there may be potential for a group action if sufficient individuals have been affected.