Refusing to complete

Richmond38

I am buying a new build and the final legal completion is just two weeks away.
I hope it does not come to this but what will happen if I refuse to complete on the completion date?

The reason I am asking is that there are some outstanding problems with the property.

The main problem is that two large manhole covers have appeared in the garden which lead to a sewer. The problem with these is that you can hear the sewage flowing when you are in the garden and also there is an off-putting smell when you get close to them. I was not informed of these when I agreed to buy the property - they are not shown on the drainage plans! The garden is very small and the manholes are central. I need assurances that something will be done about them before completion. I don't think I want to buy the house unless something is done.

The other problem is that I have been overcharged for a shared fence. Several months ago I noticed that the house had been moved back 6 feet shortening the garden. I have complained about this several times but the bill has still not been corrected. I have agreed to pay for half of the shared fence
(sharing cost with neighbour). I have been billed for half of 11 metres. I have measured the shared fence at just under 9 metres. The difference is not a lot of money but I am unwilling to let this go due to the builder's ignorance of this problem. I want the bill correcting before completion because I am due to pay it on completion. I found out last week that the reason for the house being moved is that is that the plans were changed at some point. The house was sold to me from the old plans. The new plans must have existed for at least 6 months but I only saw them for the first time last week.

I would greatly appreciate some advice.

Thanks.

david29dpo

have your exchanged contracts?

Bossyboots

I thinkthe place you should be asking for advice is your solicitor. It you have exchanged contracts then technically you are bound by the completion date.

However, if there are signficant changes (and the sewer issue could be described as that, as it will affect your enjoyment of the property) then you could argue that the property is not to the same specification as contracted. I am sure it will be a battle to persuade the builder that you should not be bound to a contract when the property you are purchasing is different to what you were told you were getting. It will of course depend on the contract terms (and whether they are fair) as to whether you have any argument at all. As your solicitor has all the paperwork, it is really for them to advise if you have a get out.

magyar

There is no question; if there is a material difference in the property from when you last viewed it/got it surveyed, then this is misrepresentation.

Agree with Bossyboots, your solicitor can advise you, but in principle you have two choices: negotiate a reduced sale price to compensate or request that manhole issue be sorted by an agreed date. (Incidentally, how can two manholes "just appear"!?)

If they refuse to do either, you could pull out of the sale and they would have to compensate your loss.

Regarding the fence, I wouldn't hold up your sale on that point!

Richmond38

Thank you for your replies. I will speak to my solicitor about this today.

I exchanged contracts several months ago but they plans they they used to sell me the property were not the plans they used to build the property. Even the new plans don't show the two manholes in the garden.

When I say that two manholes 'appeared' I mean that they weren't there when I previously saw the garden. I have photos of the garden area from several months ago showing no manholes. The manholes were either
covered by earth or have been put in recently. Now that the garden has been dug up ready for turfing the manholes have 'appeared'.

I agree that fence is a small issue but they have messed me around so much over it. I don't think that they have ever believed me when I told them that the position of the house didn't match the plan. They never bothered to check it out. Now that the sales exec has the new plans showing the house in a different position they can't dispute it.

What I am worried about, if I refuse to complete, is that the builder might try to charge me for lost revenue. Can they do this?

magyar

Richmond38 wrote:

Thank you for your replies. I will speak to my solicitor about this today.

I exchanged contracts several months ago but they plans they they used to sell me the property were not the plans they used to build the property. Even the new plans don't show the two manholes in the garden.

When I say that two manholes 'appeared' I mean that they weren't there when I previously saw the garden. I have photos of the garden area from several months ago showing no manholes. The manholes were either
covered by earth or have been put in recently. Now that the garden has been dug up ready for turfing the manholes have 'appeared'.

I agree that fence is a small issue but they have messed me around so much over it. I don't think that they have ever believed me when I told them that the position of the house didn't match the plan. They never bothered to check it out. Now that the sales exec has the new plans showing the house in a different position they can't dispute it.

What I am worried about, if I refuse to complete, is that the builder might try to charge me for lost revenue. Can they do this?

So I assume this is a new build you're buying. It's useful that you have the photos showing a lack of manholes. If they're not on the plan and not on the photos then clearly you agreed to buy the house with they understanding they weren't there!

The problem is going to be the value of this. I imagine they can't remove the manholes, so all you can easily do is try and negotiate is a reduction in the sale price.

In theory the builder could sue you for loss of profit if you withdrew, but I can't see that he has a leg to stand on myself.

Interested to know what your solicitor advises.

scorpio_princess

Why do builders/developers insist that contracts are exchanged so early - often before the first brick has even been laid? Personally I think a house should be completely finished before anyone can buy it - if you buy "off plan" (which i'd never do because I wouldn't trust builders as far as I could chuck 'em) then you run the risk of things not being exactly as you'd been lead to believe. These developers are not in the house building game because they care about people's lives and homes - pure profit is all they're interested in. A friend's mum bought a new build a few years ago and she's had nothing but problems with it ever since - massive cracks in the walls (interior and exterior), the wrong conservatory was built (ie not the style she chose) and a drainage problem in the back garden.

In the olden days, didn't they have to let houses 'stand' for a few months before anyone was allowed to move in? Or am I mistaken?

clutton_2

manholes can be re-routed to a different place along the line of the pipework. Get the builders to move them somewhere more convenient to you - in the path ? next the fence ? - rather than in the middle of the lawn. How deep is the pipe underneath ? If it is smelling, it may be too near the surface. Dont waste you energy on 2 meters of fence - focus on the important things.