'Some buy to let investors unaware of law'

12 October 2009

Written by Gavin Elley

Some buy to let investors think that they are able to withdraw from a property purchase after they have exchanged contracts, it has been suggested.

In a BBC interview on Friday October 9th, Jeremy Raj from law firm Wedlake Bell revealed that some of those involved in the sector think that they will only lose their deposits - but this is not the case.

"The legal position is quite clear. They are legally obliged to complete on the transaction," he explained.

Following these comments, Property Investor News magazine editor Richard Bowser said some investors were "preyed upon" by industry groups between 2005 and 2007 - the peak period for the sector.

He stated that various legal firms have made it clear that a number of naive and amateur investors have found themselves in difficulties as a result of such practices.

Reflecting on the BBC interview, Mr Bowser claimed that the situation is "nothing new" and has been the case for years.

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