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Development Co pushing for early exchange...
paddytt
Posts: 302 Forumite
We have made an offer on a house & office block and it has been accepted. The office block must be demolished to complete the planning requirement on the house for change of use back to residental. The owners (a property co) are insisting on a quickie 15-day exchange of contracts, with completion dependant on the demolition being completed within 6 months.
We are not comfortable with exchanging before demolition starts (what if they go bust? what if there is damage to the house during demolition - who's insurance pays? Will we get insurance for this? How will the house be left after the demolition?) and we are not comfortable with the 6 month timescale. They claim not to even be able to provide the instructions to the demolition company until planning and listed consent has been discharged.
They claim to have accepted out lower affer because we are in a position to proceed quickly. But what difference does this make to them because they are setting the timescale for completion?
Does anyone have any experience of such a situation? How much deposit should we pay on exchange? Will insurance be a problem? As it stands we are tempted to reduce our offer because of the risks and potential additional costs involved.
thanks for any advice!
paddy
We are not comfortable with exchanging before demolition starts (what if they go bust? what if there is damage to the house during demolition - who's insurance pays? Will we get insurance for this? How will the house be left after the demolition?) and we are not comfortable with the 6 month timescale. They claim not to even be able to provide the instructions to the demolition company until planning and listed consent has been discharged.
They claim to have accepted out lower affer because we are in a position to proceed quickly. But what difference does this make to them because they are setting the timescale for completion?
Does anyone have any experience of such a situation? How much deposit should we pay on exchange? Will insurance be a problem? As it stands we are tempted to reduce our offer because of the risks and potential additional costs involved.
thanks for any advice!
paddy
0
Comments
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I would say you are covered if this is in the contract. Your solicitor will advise. Basically, your getout is at 6 months if demolition is not completed. But take care to have demolition and site clearance defined carefully [and making good too], so that you are not left with tonnes of rubble to ship offsite at your own expense.The owners (a property co) are insisting on a quickie 15-day exchange of contracts, with completion dependant on the demolition being completed within 6 months.
Beware that you may need a mortgage offer lasts beyond the 6 months.
The only thing I would possibly change is if they are hassling you for 15 days to exchange, you could hassle for 3 months to demolition being complete.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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