High Court decision on breach of bulk purchase property contract
Regency alleged that Boatport was in breach of its contractual obligation promptly to serve completion notices on sub-purchasers of individual flats. It alleged that instead of serving them in October or November 2008, Boatport deliberately delayed serving them until January 2009, by which time the sub-purchasers were no longer in a financial position to complete their purchases.
Rejecting the claim, the Deputy Judge held that completion notices were not due to be served until works to the whole of the ground floor reception area were complete and fire precautions certificates for the whole building were obtained, and that on the facts this did not happen before 26 January 2009.
The Judge further held that, even if completion notices had been served in October or November 2008, there was no realistic chance that any more than the 6 sub-purchasers who did in fact complete in February 2009 would have completed in November 2008, owing to the serious decline in the property market and the impact of the credit crunch on buy-to-let investors.
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