Open Completion Date?

mattyh

We're about to exchange on a new build that won't be build for some months now, therefore an actual completion date cannot be set. We needed to be in a non-chain situation so we managed to buy it not-dependant on the sale of our current property, which we now have the job of selling over the next few months.

My question is this - is it possible to set an 'open completion' date and still exchange contracts? Will we have to commit to a specific period of time (ie 'completion must occur in between october and november' for instance?)

Any advice would be a help, thanks!

distilled

Yes it is. The contract will state that legal completion will be "on notice" which means that when the house is finished, the builder will give you two weeks (usually) to get all the money together and conclude all legal issues.

Notice will be served on your solicitor and he will then need to collect all monies due from yourself and the lender (if any) and on a date which you agree will forward monies to the builder's solicitor. This is your completion date and you will be able to collect the keys to your new home. You will not be able to extend the completion date beyond the two week period (10 working days to be precise) without the consent of the builder, otherwise you will be liable to pay interest.

mattyh

thanks for the reply. That bit makes sense, the buying part is easy But my real question is... can I do the same with the (potential) buyer of my property? As I said before, the purchase of the new house is not dependant on the sale of my old one, but for obvious reasons i'd like the two transactions to more or less co-incide!

Can I tell the potential buyer of my house that legal completion will also be 'on 2 week notice' within, say, a 2 month range?

silvercar

you can certainly ask, though your buyer may not agree. In fact some buyers might be put off if the feel they could be waiting ages to move in.