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Buying from the plans and subsequent changes to planning

  • 07-02-2019 5:56pm
    #1
    Registered Users, Registered Users 2 Posts: 184 ✭✭


    I think most of us who have bought new houses “off the plans” are aware of, and were probably terrified of (!), the standard contractual clause that gives the developer the discretion to seek to alter the planning of the development.

    But can this give rise to misrepresentation? I am unaware of any cases where a developer has been found to have made a misrepresentation to clients from changes made to the planning of a development following their purchase.

    If marketing material has been provided to a purchaser such as plans, impressions of the landscaping, or impressions of the type houses that will be built adjacent to the houses being purchased, and it is the developers intention to alter planning as soon as those purchasers have signed their contracts then can this be seen as a misrepresentation? It would seem that no would be the answer as purchasers sign a contract with a clause recognising that planning in the development may be changed.

    But what if a developer makes commitments that he knows to be false to those purchasers – for example, verbal guarantees that there will be no changes to the planning, or even providing marketing material that confirms all properties on the plans as being purchased and so no changes to planning could take place. And purchasers rely on these assurances, that turn out to be fraudulent.

    This looks like textbook fraudulent misrepresentation territory but cannot find any precedent. Anyone any thoughts?


Comments

  • Registered Users, Registered Users 2 Posts: 6,769 ✭✭✭nuac


    Mod

    imho a proposed purchaser should take his/her own legal advice on such clauses in a contract.
    Leaving open for general discussion subject to forum rule on legal advice


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