Monies paid over prior to exchange - can I reclaim?

bellwayblues

Simple question I hope.

I reserved on a property, paid £1,000, agreed it would be a part exchange, paid nearly £10,000 for extras (bespoke additions), and then the property developer said after 5 months a survey of my home valued it a lot less. As their buyer wanted to pay less, they said we had no part exchange, and that I should lose out.

I don't have a contract, or exchange, just trusting the developer.

If I pull the plug on the deal, will I lose the £1000 reservation fee, the money, nearly £10000 for doing the house up, and a penalty.

Or as they have reneged on the deal, can I get all my money back and claim damages for the distress, having looked forward to moving for nearly 6 months, and it will be starting all over at the wrong time of the year. I have packed and stored and was expecting to move in the next week when this all went bad. If there is a good legal recourse, I would be grateful to hear. My solicitor is not an expert when things go awry.

Fire_Fox

Welcome! You paid £11K and you have nothing in writing at all? Did you solicitor know about this? Have the bespoke additions been completed? No you cannot claim damages for distress, house sales fall though all the time.

littlesparkles

My new build extras terms & conditions states that I would lose the money spent on extras if the purchase fell through. However I thought that part ex meant that the builder actually bought your current property from you and then sold it on. It doesn't sound like this has happened for you. I am on a scheme that is similar to what you describe but it is not part exchange. The builder has helped me to find a buyer (by paying estate agent fees and pushing the marketing and ensuring the sale progresses) but if anything had changed (e.g. the buyer lowering their offer) then I would have lost out. This isn't the same as part exchange.

littlesparkles

Should have added... if I had part exchanged then myself and the builder would have exchanged contracts for both the sale and purchase within 28 days and they the builder could not have changed either price. With assisted move I had to wait until the buyer was ready to exchange with me and, as with all house sales, this buyer could have backed out or changed their offer right up until the point of exchange.

G_M

What are the terms you signed up to of the 'part exchange'?

Does it state an agreed price?

Does it say 'subject to valuation' or similar?

Without seeing all your paperwork it is impossible to advise, but presumably your solicitor has seen your paperwork, so knows what you agreed to and what the developer agreed to, if anything.

bellwayblues

It is with Bellway.

Reservation was with p/x.

Moving Made Easy took this and said on paperwork part exchange was subject to independent valuation.

After a few weeks they tried to knock me down - despite valuation by a couple of local agents and their own survey.

After a few months the buyer got a survey - not independent - and asked for a lot of money off. They then decided to say no deal with them - you must deal with the buyer of your house.

All the additions I paid for have been receipted etc but feel if the seller dropped out or the reduction was too big for them I had no deal, and I wasted my money.

If anyone has similar experience grateful. Not exchanged, still hoping, but feel its david v goliath. How can they pull the plug, and feel if price was too low, I would lose what I paid out. I did think they would have been honourable.

Thrugelmir

Why haven't you exchanged? Yet spent money on bespoke extras.

Did you consult your solicitor regarding this?

G_M

said on paperwork part exchange was subject to independent valuation.

On the face of it then there was no fixed price for the p/x, and therefore if you backed out because you didn't like the final price offerred I doubt you can claim back.

But I'm still mystified by the exact form of agreement you signed, and whether it was with Bellway (the developers?) or Moving Made Easy (agents?)...

You'll really have to look closely at the paperwork (as previously advised) and/or discuss with your solicitor - though since you've ignored previous Qs about this, I suspect you signed/paid without involving a solicitor.......

littlesparkles

It sounds to me that it wasn't part exchange. I am buying from Taylor Wimpey on their Easy Move scheme which a company called Move with Us deal with. This sounds more like what the OP signed up for. For this I agreed a price to market my property at with the builder but it still meant nothing was set in stone until a buyer had made an offer and then exchanged contracts with me. I also had to pay for any extras before exchange (but not £10k). I would have lost this money if my buyer had backed out or reduced their offer before exchange.

I doubt there is anything the OP can do to get this money back. The options will be to reject the buyer's lower offer and re-market the property and risk losing the new house (and 10k paid for extras) or accept the lower offer to secure the sale and new build purchase.

DiscoCat54

Moving made easy are the company that are co-ordinating my part-ex. With my developer the deal was that if you arranged your upgrades prior to exchange you paid 50% up front (not protected in case of a no sale) but if it was after exchange you paid on completion. I refused point blank to pay for anything until exchange even though I submitted my options a week before.

It was my understanding that Moving Made Easy were only the facilitator and it is the developer who decides on the figures based on their margins.

bellwayblues

I suppose there is a lesson for us all.

Reservation form says if purchaser cancels she/he must pay an admin fee... £750.

It was supposed to be exchange in a month it was not. Looking closely Bellway could end themselves and return the fee less the admin costs. I wonder if that happens as would appear grossly unfair. Winkworths were handling this for Bellway and they are very slow so one reason the legal exchange is taking so long.

Special condition on the form state p/x offer of £x subject to 28 day exchange. Verbally they said it continued over.

The Bellway Guide to part exchange, written with Moving Made Easy states....
Select your new home and complete the application forms with the sales consultant
2/3 local estate agents will be instructed to complete valuations on your existing home at a convenient time with you
Once you have accepted the p/x offer and you have completed your reservation form, an EPC and Survey will be ordered for your existing property
Estate Agents will be instructed to market the p/x property immediately and a for sale sign will be erected
Once the survey has been completed and a satisfactory report has been received, subject to legal advisers and financial arrangements, you will be in a position to exchange contracts on the purchase of your new home
You will stay in your existing property until your new home is ready to move in to
Whether your existing home has sold or not, you will move into your brand new home as soon as it is ready.

All went well for four months, thinking the delay was because the house was being completed, but a late survey from the purchasers of the px asked for a price reduction and I suppose the margins were too low. The home appears ready, the px may not have sold, but Bellway / MME pulled the plug effectively.

Moving Made Easy sent correspondence, and valued, and agreed afterwards to the valuation on the form. It is however more a letter. I will look to see if I have more, though assumed it was all standard.