Penalty clause:Buying off plans:evry mth after Feb €1k comes off price if not complet

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plant43

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I'm buying off the plans in a new development. I got the vendors solicitor to put a penalty clause in the contract which states that every month after February that the house isn't complete €1000 comes off the price. Has anyone heard of this happening before?
 
Re: Penalty clause

And the developer agreed to this? Seems surprising to me. Has your own solicitor advised that this is enforceable?
 
Re: Penalty clause

Yep, the developer has agreed to this. Solicitor has not indicated that it's not enforceable, I suspect she would advise if it wasn't enforcable. It was used by the agent to entice us into purchasing in the first place, but it wasn't mentioned in the initial contracts, so I chased up the vendors solicitor.
 
Re: Penalty clause

If I was you I would double check with my own solicitor that this was enforceable. If so that's great. Sign of the times perhaps?
 
Re: Penalty clause

Sorry when I said "Solicitor has not indicated that it's not enforceable" I was referring to my own solicitor.

I would reckon it's a sign of the times.
 
Re: Penalty clause

plant43 said:
Sorry when I said "Solicitor has not indicated that it's not enforceable" I was referring to my own solicitor.
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Yes - so I would look got them to positively say that it is enforceable just to be sure.
 
Re: Penalty clause

Fairly common in commercial property and it is enforcable have seen it many times. Can be used if tenant is leaving a building after requesting or in new developments. Your solicitor will be familiar with those clauses just another way to entice buyers. Developers are used to these in construction contracts where nearly all builders have to sign up to them.
 
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At first glance, I can see no reason why such a clause would not be enforceable.
 
Re: Penalty clause

No - but I'm just surprised that a developer is agreeing to such a clause for a (presumably?) residential property and would certainly double check that it's enforceable with my own solicitor.
 
Re: Penalty clause

plant43 said:
I'm buying off the plans in a new development. I got the vendors solicitor to put a penalty clause in the contract which states that every month after February that the house isn't complete €1000 comes off the price. Has anyone heard of this happening before?
Click to expand...

The sale closed last week, house was two months late so we got €2,000 off the purchase price.
 
Re: Penalty clause:Buying off plans:evry mth after Feb €1k comes off price if not com

Happy days - thats great news!

Thanks for the update.
 
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