I put down a deposit off plan in 2003 for a property that was panned to be completed in 2005. Before we put down the 30% deposit we reviewed all of the contract details with our lawyer and checked specifically that the contract referenced the Bank Guarantee.
Turn the clock forward a few years:- The property developer has gone bust and sold the developement to a family member. The new family member has run out of cash and wants more money to complete. The bank is threatening foreclosure on the development and encouraging me (and others) to complete on the unfinished property.
An ideal case for calling on your bank guarantee, I hear you say. However despite talking at length about this with the lawyer and being assured all was in order, the lawyers never actually obtained the bank guarantee.
We are now in a delicate position of trying to negotiate a deal to preferably return our deposit (not likely) or complete under terms that are more consistent with market prices and protect us from throwing good money after bad or take the existing developer to court.
There is another option which is perhaps to take the lawyers to court for negligence. Does anyone have any insight or experience on this?
In the meantime we are working with them on the other options as they know that they screwed up and that I know they did. They are very slow to repsond and I can't help feeling that my best interests are not at the top of their agenda.
Any advice please?