Elysium Law were instructed by large groups in multiple claims for professional negligence, breach of trust and breach of contract against conveyancing solicitors relating to off-plan fractional residential development schemes.
These claims, whilst involving different developments were similar in that a Developer marketed and sold units in an off-plan project, predominantly to overseas buyers. These buyers intended to let the units upon completion. The developments use a fractional sales model and buyers typically paid large deposits of 50%-80% of the total purchase price. These deposits were due to be used to fund completion of the project and were held on trust within a ‘buyer company’, usually with the Sellers solicitor as director, pursuant to a legal charge.
The money held within the buyer company was then spent on construction and more pertinently marketing and the buyers lost their deposits with little to no building work completed.
Elysium Law have obtained many multi-million pound recoveries for client groups.
For more information please read our article on this topic.