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deposit and contract exchange

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  • saajan_12
    saajan_12 Posts: 3,621 Forumite
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    JESSICA_KARINA wrote: »
    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.

    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
    JESSICA_KARINA Posts: 15 Forumite
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    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
    gettingtheresometime Posts: 6,911 Forumite
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    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?
  • JESSICA_KARINA
    JESSICA_KARINA Posts: 15 Forumite
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    Hi gettingther,

    OP? what is it?
    We are buying the house. We are first time buyers.
  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
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    JESSICA_KARINA wrote: »
    Hi gettingther,

    OP? what is it?
    We are buying the house. We are first time buyers.

    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
    JESSICA_KARINA Posts: 15 Forumite
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    Gi Surrey_EA,

    We are buying from the developer of the brand new property who has taken this house in part exchange.
  • JESSICA_KARINA
    JESSICA_KARINA Posts: 15 Forumite
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    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
    Surrey_EA Posts: 2,042 Forumite
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    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
    chappers Posts: 2,988 Forumite
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    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.
  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
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    chappers wrote: »
    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.

    A long stop completion date is the latest possible date completion can take place. Typically a developer rarely agrees to a long stop date without being extremely confident their product will be completed well in advance of that date, as they would be in breach of contract if the completion date arrives and the brand new property has not been finished.

    If you exchange contracts with a long stop date, and then the other party gets fed up, they can't simply pull out if they feel like it, not without significant financial penalties.
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