Exchange of contract with out completion date

mdnawy

Hello All,

Apologies if this has been raised before.
Our offer got accepted on a property and we are about exchange contract. The only problem I see there is no completion date set. I am part of a chain. I am a FTB buying a flat from a seller who is in turn buying a new build property from Linden homes.
They are refusing to set a completion date in writing before the exhange of contract. They are saying some time in april will be completion and I am feeling a bit uncomfortable with it as , as part of the contract exchange I will be paying 10% deposit.
Is this a common practice to not have set date of completion during the exchange of contract.....should I proceed with this

timmyt

what date/method for completion is being offered to you? on notice, say 10 days?

if your deposit is effectively going up the chain, then remind the top buying from the developer that it must be held as stakeholder if it is to be useable.

not many lawyers ensure that!

CloudCuckooLand

I don't think you should. They can set the date as April 30th, if they know April.

The problem with a new build is that its probably late already due to snow, and you don't know what else might happen, to make you wait weeks and months.

And you'll be on a hook, as your deposit will be at risk.

Your solicitor should be able to advise on best way to protect yourself. I'd want a deposit from them, with a date upon which it becomes yours...

mdnawy

Thanks for the advice.
It is 10 days advcanc notice before completion. I am in two minds now, dont feel very comfortable but still want to buy that property. I am going to talk to my solicitor and possibly pull out

DVardysShadow

mdnawy wrote: »

Thanks for the advice.
It is 10 days advcanc notice before completion. I am in two minds now, dont feel very comfortable but still want to buy that property. I am going to talk to my solicitor and possibly pull out

You can be a little more robust and insist on an end stop date, say 6 weeks, rather than pulling out. In your position I would be putting it up the chain to provide an endstop date of their choice - making sure what came back was before the mortgage offer expires

Richard_Webster

Quote:
Originally Posted by mdnawy
Thanks for the advice.
It is 10 days advcanc notice before completion. I am in two minds now, dont feel very comfortable but still want to buy that property. I am going to talk to my solicitor and possibly pull out
You can be a little more robust and insist on an end stop date, say 6 weeks, rather than pulling out. In your position I would be putting it up the chain to provide an endstop date of their choice - making sure what came back was before the mortgage offer expires

I agree.

People buying uncompleted new houses are always warned by me when I act for them that they may have to be prepared to move out to keep their buyer, if the purchase cannot be completed before an agreed "longstop date". That is just one of the many issues with buying a new house.

maninthestreet

Richard_Webster wrote: »

I agree.

People buying uncompleted new houses are always warned by me when I act for them that they may have to be prepared to move out to keep their buyer, if the purchase cannot be completed before an agreed "longstop date". That is just one of the many issues with buying a new house.

Richard - aren't there some changes in the law being introduced on the 1st April related to purches uncompleted new houses?

Richard_Webster

I don't know of any changes that would impinge on this particular detailed point.

mdnawy

Thanks you all. I have contacted my solicitor and have asked them to contact the seller's solicitor and let them know that if the seller is not ready to give an exact completion then we would be willing for them to give us a long stop date (10 weeks) i.e our mortgage offer expiry date. I don't mind waiting as long as there is an end period.
I am yet to hear from my solicitor.

DVardysShadow

Let the Agent know too. Solicitors just pass messages on via each other and the Agent might be late in hearing about this. If the Agent knows your position, if he is any good, he will be working to save his commission.

PasturesNew

mdnawy wrote: »

I don't mind waiting as long as there is an end period.

It's not about waiting, it's about risk.

e.g. if in that 10 weeks you are made redundant, then there's a strong possibility your mortgage offer would be pulled anyway ... yet you'd have exchanged contracts. The shorter the period between exchange and completion, the less that could go wrong.

You might die.
You might have a big accident.
You might be struck down by an evil illness.
You might be sacked.
You might be laid off.

100s of things could go wrong. So it's about risk, not how long you think (based on today's events) you are happy to wait.