Being held off on exchange for newbuild home

wealth001

Hi
My offer on a newbuild flat was accepted months ago (around June), I got my mortgage and retained a solicitor. I've paid the reservation fee and had to wait months while the exchange date was moved several times even tho the flats had been completed for months. Eventually a new exchange date was agreed only to be moved for the umpteenth time. I've recently learnt from my solicitor that they are ready for exchange now (hard to believe) but would like a notice to complete rather than a completion date (which feels like they still have more delay tactics to pull).

My question is: before things become legally binding (exchange of contracts) can I still negotiate for or demand cash incentives such as payment of my legal fees or something (it may be too late for a discount on the price) citing their repeated/irritating delay tactics as a basis?

2ndly, have buyers absolutely no rights or fall-back tools in the event of such messing about before exchange? I've been losing money sitting around and the value of that property must surely be falling as the months tick by.

Thanks

GDB2222

You haven't exchanged contracts yet? Offer 20% less and be prepared to walk away. You may lose your reservation fee, but the price of properties is bound to have fallen by more than that.

In any case, if the property is not yet built and ready to move into, do not exchange contracts. Otherwise, you can be caught in never-never-land, with a binding contract to buy a property that does not get built for years.

hethmar

Offer 20% lower citing current market and set an exchange/completion date that is "time is of the essence". In that situation, if they fail to complete on the date agreed you will get some interest off them for the delay. Speak to your solicitor.

PasturesNew

Also, double check and get in writing their intentions of selling any for social housing. This might have changed since you started.

wealth001

Thanks, you guys, getting on the phone to my solicitor right away

hethmar

PN, could you explain if there is a difference between "social housing" and "housing association shared ownership". I can see the obvious difference in that shared ownership requires a percentage of the house to be bought by the "tenants".

boggie40

balls in your court on this one.. you have everything in your favour, just depends weather you can face the prospect of not getting the property of your choice ??

wealth001

Well, I made the call to the sellers. I think I might have hastily threatened to walk away if no re-negotiation was possible, rather than demanding an exchange date 'of the essence' first (failing which, compensation kicks in).
The property is not the best available, it's just that the price is low (to match the neighbourhood). Not afraid to lose it, just concerned about having to start the process all over again elsewhere.

hethmar

I thought you were going to consult your solicitor about the situation not the builders? Oh, dont worry, they will still be champing at the bit to sell the house to you - IF you still want it. Meanwhile, have a look around to see what else is on offer, just in case.

Cat695

wealth001 wrote: »

Well, I made the call to the sellers. I think I might have hastily threatened to walk away if no re-negotiation was possible, rather than demanding an exchange date 'of the essence' first (failing which, compensation kicks in).
The property is not the best available, it's just that the price is low (to match the neighbourhood). Not afraid to lose it, just concerned about having to start the process all over again elsewhere.

Don't think your anyway in the wrong here. its sounds like you have waited and waited for them to pull the thumb from out of their behind, so do exactly what the other's have said and offer less money. and if they make you wait again while they decide.....offer lower again (in the mean time find yourself somewhere else)

Premier_2

Although you claim the property is complete and has been for some time, you say the developer has kept causing delays in exchanging contracts.

Now you say that they will exchange but only with an open ended completion date.

Now call me old fashioned, but developers build properties to sell at a profit and the quicker they can sell them (once completed) the more profit they make.

It sounds to me the developer doesn't really want to sell the property to you. If you ask for a discount now, that might just convince them not to.

I think I'd be inclined to go and find a property that a seller actually wants to sell.