New build part ex and completion date

Garage03

Help! We are in process of buying a new build and have part ex'd our with well known builder. House is ex show home so already built & ready to go, have rushed around as said we have to exchange contracts within 28 days (by tommorrow) & be ready to move by 15th jan at latest. Rang our solicitor today (who is also their solicitor) and he said although he is ready they arent and will now be March as they havent got any funds to buy our house. Phoned builder and they have just said sorry you were mislead but tough! Has anyone else experience of this sort of thing?

badm88n

Hi,
Completion is normally 28 days after exchange but can be sooner or later depending on what is agreed between seller and buyer. Your solicitor will normally ask you what completion date suits you and then negotiate a suitable completion date with the other solicitor.

It is not ideal for the buyer and seller to have the same solicitor, as in your case. Is it too late to get your own solicitor? at least then you would know the solicitor is acting in your best interests.

Have you placed a deposit yet? if not then you will be in a strong position to drive the completion date on exchange.

If you really like the property and are willing to wait then why not? After exchange the seller will be obliged to meet the completion date even if they cannot raise funds to buy your property. If the seller is already moaning about not having funds to buy your property I would check the contract on exchange before signing it, make sure there is no get out clause if they cannot raise the funds. I would not worry about this if you had your own solicitor but you are sharing solicitors.

All the best.

Raggie

Err.... If your part ex for a new build there has to be a differential between your property and the one you are buying.

Normally the differance is in the region of 30%.

This means the builder will take the part ex property + extra monies for the new house.

The builder does not give you money for yours, there is always a
net differance payable to the builder.

No funds are needed to buy your property.

Garage03

We saw solicitor last wk and he said 8/15th Jan but seems to just fob us off to developer now. Not ideal having same solicitor as them but just thought it would be easier as they said it had to go through quickly and would loose deposit if we werent ready to exchange!
March not really a problem if they would be willing to exchange so at least we have some come back but wonder whether they want wait to see if they sell ours first. More annoyed they are changing the rules when their scheme doesnt suit them anymore!!

terrierlady

which developer is it? I dont know any that allow their clients to use their sols, do you mean a recommended sols they had on their panel, most developers sols are in house now a days plus money does not change hands they dont give you cash for yours, more usal to do a back to back sale on part exchange property, the reason could be that the new show home is not ready or they need to use old one for a while to sell last few properties, you would exchange on notice,ask for a long stop date.