New Build 28 Day Exchange

kkqd1337

hi guys

i;m thinking of putting an offer on my first flat on a new build property

they want a £500 non-refundable deposit and exchange in 28 days

is this normal?

my problem is that i change jobs the end of this month which i am sure will cause some sort of mortgage problem

are they strict with these 28 day rules?

am in london - these flats will all sell by the end of the week and i dont want to miss the opportunity but also don't want to loose £500

kingstreet

Yes, a 28 day exchange is usual. A few days longer won't be a problem. A few weeks and they will start to get twitchy.

The reservation fee (not a deposit) is refundable, if you are unable to proceed. They cannot make it non-refundable. They may be able to retain some of the fee for certain expenses.

Changing jobs will not be an issue for some lenders. For others it will be a deal-breaker. You need to establish in which camp your's sits.

kingstreet

This may be of help to you;-

http://www.consumercodeforhomebuilders.com/homeowners.php

kkqd1337

The Reservation Agreement is a legal agreement. The builder is committed to holding that property for the Home Buyer at a defined price and period of time and not to market it to any other potential buyers during the period of the Reservation Agreement. The Home Buyer is therefore protected from ‘gazumping’ or being placed in a ‘contract race’ The Home Buyer has an exclusive period in which, with the advice of their solicitor they are able to satisfy themselves in all respects that it is the property they wish to buy, that it is suitable for them, and that they have the finance available to buy it, on the terms proposed in the Contract of Sale.

If the Home Buyer does not proceed to exchange of contracts, then the Home Builder may have incurred costs in instructing solicitors, providing the detailed contract documentation, dealing with the customer’s enquiries, and other administration costs in processing the sale. They may have incurred costs in delaying the eventual sale and in remarketing of the property.

The Home Builder is allowed to deduct from the Reservation fee those costs actually incurred in holding and processing that sale.

that's brilliant - i just read the above

but sounds like they might magically state their costs as £500 and doesnt sound like there is anything to stop them from doing this

guess i need to speak this through with a broker properly

we'll see....

chanz4

This Barratt, if so they keep £50