Open Contract

Gazumped_2

Can I just clarify, the original seller, would be happy to exchange tomorrow. It is the builders who are leaving things open ended.

As they are controlling the house being built and the sale of the original property as they have taken it as part exchange.

Gazumped_2

My solicitors, have just rang me to say the builders of the new build will not be prepared to put any date on the contract, as they can not put a completion date on the sellers new build property we would receive the same treatment.

So I have basically been given the choice whether I want an open contract or not.

The only thing the solicitor said they could do, is write an amendment in the contract to say that the sale would be on the condition of our mortgage. I.e. if it is after 28/02/2011 and we can not get a mortgage arranged, then I would not have to buy it.

G_M

Stop letting THEM dictate to YOU.

Tell them to either
1) agree a completion date and Exchange
2) Have a flexible completion date but with a backstop of 28/20/11 AND SEVERE PENALTIES FOR FAILURE TO COMPLETE BY THEN
3) or you will pull out.

Frankly I think you should mentally prepare yourself to pull out.

The only other option you have is to say "right, you're messing me about, delay costs money, I want another £XK knocked off the purchase price."

hazyjo

I'm getting confused... what's sold part exchanged? You're buying their house, right? And they're buying a new build?

Why can't they just complete on their sale/your purchase and go stay with family or friends, or take a 6 month rental? If they lose a few months' rent, so be it. Better than losing a buyer, surely?

Jx

shimano

G_M is right, put the pressure on them, stop letting them put it on you, it's not your problem.

Gazumped_2

Full Story:

Seller wants to buy new build from Builder. Builder offers X for sellers house part exchange.

Seller thinks they can get more so advertises with estate agent.

We make offer. Offer gets accepted, turns out the offer was for lower than what was orginally offered.

Builder comes in and says except that and we will knock some of the new build.

So the Builder is taking the Sellers house in part exachange and selling it to us.

Now builder is building house which was due to be finished Dec/Jan. When building is finished. Sellers house will transfer from them to the builders and then to us.

I am not entirely sure what the deal is the sellers and their new build apart from that they have no fixed date to move in on. This is why the builders will not give us a date.

The sellers have solicitors who are also dealing with the builder to try and fix a date.

So I am not entirely sure where this would all sit if we did pull out.

The way it has gone I presume that the builders would just hold the house, give the sellers their new house. And sell the property in question when they can.

Gazumped_2

They have not really dictated to me, they have given the option.

Sign or do not sign as the builders will not set a date.

hazyjo

If the builder and seller lose you as a buyer, they could stand to lose a lot as prices still seem to be dropping and they might have to take a cut. And if they can't sell it, the vendors won't be able to buy the new build. Seems to me the builder needs to find a solution pronto or risk a rather messy situation... not sure if he can sell a house that was taken in part exchange though on something they've not yet sold to the vendors... maybe if a completion date was set on the house, and an open ended contract was done on the new build? Would that even be possible?

Gawd... I'd start looking round if I were you. Horrible situation... or you just wait indefinitely!

Jx

G_M

Gazumped wrote: »

Full Story:

Seller wants to buy new build from Builder. Builder offers X for sellers house part exchange.

Seller thinks they can get more so advertises with estate agent.

We make offer. Offer gets accepted, turns out the offer was for lower than what was orginally offered.

Builder comes in and says except that and we will knock some of the new build.

So the Builder is taking the Sellers house in part exachange and selling it to us.

Now builder is building house which was due to be finished Dec/Jan. When building is finished. Sellers house will transfer from them to the builders and then to us.

I am not entirely sure what the deal is the sellers and their new build apart from that they have no fixed date to move in on. This is why the builders will not give us a date.

The sellers have solicitors who are also dealing with the builder to try and fix a date.

So I am not entirely sure where this would all sit if we did pull out.

The way it has gone I presume that the builders would just hold the house, give the sellers their new house. And sell the property in question when they can.

NONE of this is of relevance to you. You are trying to buy a house. A price and and date was agreed. Now just prior to Exchange the seller is changing the date, and worse, not giving you a fixed alternative date.
To me, that's unacceptable, but only you can decide if it's acctable to you.

Since you posted asking for advise, you got advice.

sonastin

Do not sign.

Start looking for another house.

Pull out when you find a better option.
OR
Sign when they can commit to a completion date.
(whichever comes first...)