Tip of the Week: Thinking outside the box
If you are asked to provide your consent to tenant alterations, make sure you check whether the works are all within the tenant's demise…
Published 10 February 2016
Our London Commercial Litigation team has secured a win for property investment client Greenridge following rescission of a contract. Greenridge rescinded the property contract shortly before completion after discovering fraudulent misrepresentations in the seller's replies to enquiries (CPSEs).
The Court found that (i) the replies to the CPSEs provided to the buyer were inaccurate and contained misrepresentations by stating there were no service charge arrears, when in fact there were; (ii) the buyers had relied on the misrepresentations and been induced to enter the contract; and (iii) the representations had been made recklessly or fraudulently.
In the circumstances, the rescission of the contract had been valid and the buyers were entitled to return of the deposit together with damages for deceit in the sum of £395,948. The ruling serves as an essential reminder that sellers and/or their advisors should always ensure that: