• Exchange Of Contracts Documents Not Identical

    By Guest on 10th Jun 2015

    We have discovered that on exchange of contracts an amendment we had made was not signed by the Seller and therefore the documents on exchange were not identical The solicitors failed to check and registration went ahead. This was 2 years ago. This was unknown to us until recently we had reason to ask to see the Seller's part of the Agreement for Lease. It would appear therefore that we never had a valid contract and exchange should never have taken place The purchase was a hotel room investment with a 10% guarantee for 10 years. We have received income for 2 years. There is a rental management agreement in place which the Developer now believes can be cancelled and the amendment we made would have protected our 10% because we deleted the sentence which stated it relied on the Rental Management Agreement. Can this be rectified retrospectively if both parties agree or is there a case for us now to rescind and reverse the purchase?
    Thanking you and kind regards
    Jeanette Savage

    This was unknown to us until recently when we had reason to see the Seller's document.

  • 1 Answers

    By Guest on 11/06/2015

    This forum is intended to deal with residential conveyancing issues and this question is probably beyond its scope. One thing that does strike me is that an agreement for lease is not essential to create a valid lease. A lease itself is essentially a contract so even if the agreement is void for failure to comply with the formalities set out in s2 Law of Property Act 1989 the lease itself (which presumably contains the offending provision) may be perfectly valid. What I mean is that if you signed the lease even though it wasn't in the agreed format you may still be bound by it. I should stress that there may be other remedies available to you and you should seek specialist legal advice. If you employed a solicitor to act for you in the purchase you may be able to sue for negligence.

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