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    • JESSICA KARINA
    • By JESSICA KARINA 5th Oct 17, 11:58 AM
    • 13Posts
    • 2Thanks
    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 2
    • Surrey_EA
    • By Surrey_EA 6th Oct 17, 4:11 PM
    • 1,153 Posts
    • 1,349 Thanks
    Surrey_EA
    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.
    Originally posted by chappers
    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.
    • JESSICA KARINA
    • By JESSICA KARINA 6th Oct 17, 4:13 PM
    • 13 Posts
    • 2 Thanks
    JESSICA KARINA
    Hi Surrey_EA and chappers,

    Thank you very much for your advice. Yes, we are seriously thinking to walk away, there are many things accumulating.
    • davidmcn
    • By davidmcn 6th Oct 17, 5:06 PM
    • 5,930 Posts
    • 5,683 Thanks
    davidmcn
    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..
    Originally posted by Surrey_EA
    It's not normally expressed as the developer being in breach of contract, merely that the buyer is entitled to walk away after the long stop date arrives ie the developer isn't penalised, they just lose the sale.
    • chappers
    • By chappers 6th Oct 17, 7:03 PM
    • 2,681 Posts
    • 1,520 Thanks
    chappers
    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.
    Originally posted by Surrey_EA
    Hi I understand the theory, but the practice is another matter.
    I know of at least two people who pulled out of deals after the long stop date was missed, back in the 80's my Dad pulled out of a deal after the longstop date was exceeded twice, we ended up buying a house on the same development that was one of the first to be built and came onto the market, the house he was going to buy new, was not completed for another 6 months after the date it was meant to be finished.
    I don't know how anyone can go through the stress of buying a house off plan or getting into a chain with someone who is.
    Be interested to know if there are any stats. regarding the percentage of new build/off plan deals that complete on target.
    • JESSICA KARINA
    • By JESSICA KARINA 10th Oct 17, 4:32 PM
    • 13 Posts
    • 2 Thanks
    JESSICA KARINA
    Thank you everyone for your comments. That help me a lot. Now, I can feel that I'm not crazy to be disappointed with all this process.
    Now, our solicitor has answered my email saying that the house is build. That confuse us more. This was after I chase them to answer and confirm by email.
    All of this is so strange because before that, when I spoke by phone with her, she said that the house is not build.
    We don't understand why they change their version many times.
    If the house is build, why they are asking for an long stop day in June 2018?
    If the house is build, I think it is ok to ask for a completion day.

    If someone is thinking to buy a house in this situation, be carful!!!

    I would like to give company's names to alert everybody, but I don't know if can have legal problem for that.
    • Doozergirl
    • By Doozergirl 10th Oct 17, 5:24 PM
    • 23,891 Posts
    • 66,408 Thanks
    Doozergirl
    There's no need to give us the company name.

    This is completely usual behaviour from them. No one is moving until their house is built and signed off. The options that any potential buyers have are:
    a) to like it
    b) to lump it
    Everything that is supposed to be in heaven is already here on earth.
    • JESSICA KARINA
    • By JESSICA KARINA 10th Oct 17, 5:31 PM
    • 13 Posts
    • 2 Thanks
    JESSICA KARINA
    Hi Doozergirl,
    Did you read my previous comments?
    Is it normal that the new house build company say something and them our solicitor other?
    And then they ask to pay deposit and exchange contract to long stop day in june 2018 all the same day, like they need money desperately?
    We are buying a old house!!!!
    • hazyjo
    • By hazyjo 11th Oct 17, 10:13 AM
    • 9,624 Posts
    • 12,139 Thanks
    hazyjo
    They will all stretch the truth to suit themselves. Take everything with a pinch of salt and trust your own research!


    I'm buying and am being lied to by everyone other than the person I'm buying from. The EA has told her we'll all be completing the week beginning 23 October - but nobody has said anything to me! We're nowhere near ready due to our useless buyers holding things up!


    You need to realise you hold all the cards. If you pull out, your vendor will risk losing the new build - and it sounds like they have exchanged which will cause them loads of grief! They NEED a buyer. If you pull out, they may well decide to go into rented or stay elsewhere. In fact, they may not have much of a choice!


    Jx
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; books; film Premiere; Broadchurch DVDs; lipbalms; hamper (food/wine/Echo Dot/Jo Malone goodies); Avon lippies; cowhide rug; Windsor luxury break, foundation; Flybe flight
    • Surrey_EA
    • By Surrey_EA 11th Oct 17, 10:25 AM
    • 1,153 Posts
    • 1,349 Thanks
    Surrey_EA
    You need to realise you hold all the cards. If you pull out, your vendor will risk losing the new build - and it sounds like they have exchanged which will cause them loads of grief! They NEED a buyer. If you pull out, they may well decide to go into rented or stay elsewhere. In fact, they may not have much of a choice!


    Jx
    Originally posted by hazyjo
    The developers have taken the property the op is hoping to buy in part exchange, so the vendor are the developers building the brand new property, and the current occupants are the people wishing to move to the brand new property.
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