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    • JESSICA KARINA
    • By JESSICA KARINA 5th Oct 17, 11:58 AM
    • 13Posts
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    JESSICA KARINA
    deposit and contract exchange
    • #1
    • 5th Oct 17, 11:58 AM
    deposit and contract exchange 5th Oct 17 at 11:58 AM
    Hello, we need advice because I feel that our solicitor is not helping us.
    This is the situation:
    We are buying a old house 1920s, our sellers are buying a new house from a building company and the house is not ready. A long time ago (in July) When they offered the house they said that the new build home will be ready between Oct. and Dec. 2017.

    Last Friday the developer said that the house is ready and they needed the deposit and the exchange contract now!!!
    It was a little strange because we will waiting to be notified.

    Yesterday, I called one of our solicitor, he said that the house was not ready.

    We are really confuse.

    Our solicitors and the building company are chasing us to give the deposit and exchange contract but they can not give us a day to move, our solicitor said that it can be from December to June 2018, and this is long time and our mortgage is valid only until December 2017.

    The developer company continue sending messages because they want us to send the deposit to our solicitors. I have sent an email to our solicitors for clarification but they haven't answer yet.


    Is this normal?


    Note: Our solicitor was recommended for the building company.
Page 1
    • eddddy
    • By eddddy 5th Oct 17, 12:22 PM
    • 5,271 Posts
    • 4,910 Thanks
    eddddy
    • #2
    • 5th Oct 17, 12:22 PM
    • #2
    • 5th Oct 17, 12:22 PM
    When buying a new build house, it is usual to exchange contracts with no definite completion date - just a 'long stop date'.

    The 'long stop date' is the latest possible date - I guess that's June 2018 here. If the house isn't finished by then, the buyer can get their deposit back and look for another house.

    The builder gives the buyer 10 days notice when the house is ready. i.e. When the builder says "go", you have to move 10 days later.


    It seems that your seller is passing on all these terms to you. So are you happy...
    • To maybe wait until June 2018 to move?
    • Not move at all if your seller's house isn't ready by June 2018?
    • Move with 10 days notice?

    And I would say that you should definitely not agree to exchange contracts, unless you have a mortgage offer that is valid until June 2018.

    You wouldn't have these problems if your seller wasn't buying a new build house. So you could consider forgetting this house and finding another.

    Or you could say that you won't accept these terms - you want a fixed completion date, and your seller has to go into rented accommodation, stay with family etc.


    Note: Our solicitor was recommended for the building company.
    Originally posted by JESSICA KARINA
    That's probably a bad thing. They may be more worried about keeping the builder happy than looking after your best interests.
    • m0bov
    • By m0bov 5th Oct 17, 1:37 PM
    • 1,075 Posts
    • 722 Thanks
    m0bov
    • #3
    • 5th Oct 17, 1:37 PM
    • #3
    • 5th Oct 17, 1:37 PM
    Get the seller to move into rented. They are the ones buying new build so the delay should be for them to resolve. Unless you REALLY want this house, I'd walk, who is to say when its completed there are snagging issues? Suggest they rent and you do the usual Exchange with a 3-4 week completion.
    • JESSICA KARINA
    • By JESSICA KARINA 5th Oct 17, 1:44 PM
    • 13 Posts
    • 2 Thanks
    JESSICA KARINA
    • #4
    • 5th Oct 17, 1:44 PM
    • #4
    • 5th Oct 17, 1:44 PM
    Hi Eddddy,

    Thank you very much for your advice. It is very helpful. It is a shame because we really like the house. But our mortgage is valid only until December 2017 and we were very clear about that with our solicitors. I'm very disappointed. The solicitors has asked us to extend the deposit to June or April.
    Also, we are renting and we need 1 month notice.

    This is not all the problem. This house didn't have building regulations for the new bathroom and loft conversion. Our Lender, indicate that they wont let us the money if the house doesn't have all the regulations. So, our solicitor need to speak with our lender about this too.

    Thank you for your advice.

    Karina
    • JESSICA KARINA
    • By JESSICA KARINA 5th Oct 17, 1:51 PM
    • 13 Posts
    • 2 Thanks
    JESSICA KARINA
    • #5
    • 5th Oct 17, 1:51 PM
    • #5
    • 5th Oct 17, 1:51 PM
    Hi m0bov,
    Thank you for your advice.
    I've spoken with our solicitor a few minutes ago and the problem is that the building company is selling the house and our solicitor has said that they wont be agree with a fix moving day. They want a long stop day.

    Really, never buy a house of someone who is moving to a new build home!!!

    Kind Regards,
    Karina
    • mrschaucer
    • By mrschaucer 5th Oct 17, 2:17 PM
    • 449 Posts
    • 481 Thanks
    mrschaucer
    • #6
    • 5th Oct 17, 2:17 PM
    • #6
    • 5th Oct 17, 2:17 PM
    Your sellers appear to have signed up to a new house part exchange scheme. That is the worst of all possible worlds for you as YOU are now the ones taking on all the problems with the dates. Add that to the lack of paperwork on the house and you need to think how much you really want this particular house or whether it would be easier all round to walk away.
    • JESSICA KARINA
    • By JESSICA KARINA 5th Oct 17, 2:36 PM
    • 13 Posts
    • 2 Thanks
    JESSICA KARINA
    • #7
    • 5th Oct 17, 2:36 PM
    • #7
    • 5th Oct 17, 2:36 PM
    Is this legal? is there a place where we can complaint about this?
    • m0bov
    • By m0bov 5th Oct 17, 2:39 PM
    • 1,075 Posts
    • 722 Thanks
    m0bov
    • #8
    • 5th Oct 17, 2:39 PM
    • #8
    • 5th Oct 17, 2:39 PM
    As above, ask for your seller to move into short term rented. They are causing the problem, they need to fix it. Speak to the EA, they should pass on your feelings. Consider walking away.
    • JESSICA KARINA
    • By JESSICA KARINA 5th Oct 17, 2:45 PM
    • 13 Posts
    • 2 Thanks
    JESSICA KARINA
    • #9
    • 5th Oct 17, 2:45 PM
    • #9
    • 5th Oct 17, 2:45 PM
    The problem is that our sellers have signed up to a new house part exchange scheme. I'm not sure if we can ask them to move into short term rented. What is EA?
    • giraffe69
    • By giraffe69 5th Oct 17, 2:51 PM
    • 2,178 Posts
    • 1,918 Thanks
    giraffe69
    EA=estate agent
    • mrschaucer
    • By mrschaucer 5th Oct 17, 2:53 PM
    • 449 Posts
    • 481 Thanks
    mrschaucer
    Not sure of the legals, but when "sellers" do one of these part exchanges to move into a new build, it's the BUILDER who is actually selling their old house, so trying to get the "sellers" to move into rented accomm is a non starter. And EA is Estate Agent, by the way.
    Think you need to sit down with the solicitor and get him to explain the situation very clearly. (Bear in mind he might just be wanting what's best for the builder rather than best for you.) Next time, choose your own totally independent solicitor.
    • saajan_12
    • By saajan_12 5th Oct 17, 2:56 PM
    • 848 Posts
    • 556 Thanks
    saajan_12
    I've spoken with our solicitor a few minutes ago and the problem is that the building company is selling the house and our solicitor has said that they wont be agree with a fix moving day. They want a long stop day.
    Originally posted by JESSICA KARINA
    To clarify, call party B the people living in the house you want to buy. Now is the building company
    a) selling the new build only, or
    b) also selling the house you want to move into (under a part exchange)

    If a) then you can try insisting that you exchange with fixed completion in a few weeks on your purchase and the vendors move into rented / deal with their new build issues

    If b) surely this was seen earlier from solicitors that you were actually buying from the building company? You can try insisting a fixed completion with the building company, who might just acquiesce if it threatens the new build transaction. The building company could sell the house to you and put the party B up elsewhere temporarily.
    • JESSICA KARINA
    • By JESSICA KARINA 5th Oct 17, 3:07 PM
    • 13 Posts
    • 2 Thanks
    JESSICA KARINA
    Thank you everyone for you advice. I really appreciate that.

    Our situation is option b. The building company is also selling the house we want to move into (under a part exchange).

    That's why is very difficult to have a fixed completion day.

    The Estate Agency only show us the house, our broker is London & Country Mortgages. Maybe we can tell them the situation but I don't see how they can help with our complaining.
    • gettingtheresometime
    • By gettingtheresometime 5th Oct 17, 3:49 PM
    • 2,857 Posts
    • 6,449 Thanks
    gettingtheresometime
    Would the OP be buying off the building company though?


    Might it not be the case that the OP is buying off Party B but the house building company is guaranteeing a minimum price for their house?
    Lloyds OD / Natwest OD / PO CC / Wescott cleared thanks to the 1 debt v 100 day challenge


    Next on the list - the Argos Card!
    • JESSICA KARINA
    • By JESSICA KARINA 5th Oct 17, 4:00 PM
    • 13 Posts
    • 2 Thanks
    JESSICA KARINA
    Hi gettingther,

    OP? what is it?
    We are buying the house. We are first time buyers.
    • Surrey_EA
    • By Surrey_EA 5th Oct 17, 4:08 PM
    • 1,157 Posts
    • 1,353 Thanks
    Surrey_EA
    Hi gettingther,

    OP? what is it?
    We are buying the house. We are first time buyers.
    Originally posted by JESSICA KARINA
    OP = Original Poster

    Who are you buying the property from? Is it the people who currently live there, who are in turn buying a brand new property. Or are you buying from the developer of the brand new property who has taken this house in part exchange?
    • JESSICA KARINA
    • By JESSICA KARINA 5th Oct 17, 4:15 PM
    • 13 Posts
    • 2 Thanks
    JESSICA KARINA
    Gi Surrey_EA,

    We are buying from the developer of the brand new property who has taken this house in part exchange.
    • JESSICA KARINA
    • By JESSICA KARINA 5th Oct 17, 4:25 PM
    • 13 Posts
    • 2 Thanks
    JESSICA KARINA
    Hi gettingther,

    "Might it not be the case that the OP is buying off Party B but the house building company is guaranteeing a minimum price for their house?"

    What we understand is that the house building company is the OP.
    We bet for this house with others from different EA. We win because we offered the best price and we are first time buyers.

    I don't know how much the house building company is giving to the house owners for this house. Maybe very low.

    Kind Regards,
    Karina
    • Surrey_EA
    • By Surrey_EA 5th Oct 17, 4:44 PM
    • 1,157 Posts
    • 1,353 Thanks
    Surrey_EA
    As I see it, your options are:
    • Offer an exchange of contracts on the condition completion takes place by the end of December 2017.
    • See if it's possible to extend your mortgage offer. (Highly unlikley)
    • Apply for a new mortgage, that will be valid up until the end of June 2018.
    • Walk away from this one and look for something else to buy.
    • chappers
    • By chappers 6th Oct 17, 3:56 PM
    • 2,705 Posts
    • 1,529 Thanks
    chappers
    Walk away, walk away if the long stop date is June 2018 it could well go beyond then. There is no way I would exchange contracts that are linked to someone elses long stop date. you might get to June 2018 and the other party might get fed up pull out of their purchase would then pull your purchase from under you.
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