Bovis homes pulling out of contract

sslondon

Hello all
Thank you for all your replies and then link to consumer code for home builders, i will go through that in detail -

Bovis sales manager called me this morning, he was apologetic and had the points -

• there was an error on Bovis internal spreadsheets, which meant that the "Carpets, garden turfing and kitchen tiling" that they agreed to, would be more expensive than they had anticipated
• every reservation goes to director for approval, when this one did, the directors were not happy with the price
• going forward, (a) both parties can pull out, we get full refund or (b) we can pay them "several thousand" more for flooring/tiling and garden turfing

My concerns are -

• their contract does not state that the price is subject to approval. The exact wording are "Bovis homes agrees to maintain the price until the date of exchange of contract". There is nothing else on Bovis pulling out, nothing on subject to any approval what so ever.
• the reservation contract clearly states "Carpets, garden turfing and kitchen tiling". We asked for a lot more but they said this is ALL they can do, and we agreed to it.
• my mortgage broker has already done credit checks on us, and filed the help to buy application. The credit check shows on mine and my wifes experian report as Halifax and Royal bank of Scotland. I do not know what the implications of credit check and help to buy application will have if this falls apart. Although full mortgage application has not been filed yet.
• i had requested my solicitor to start preparing paperwork, i am hoping he will understand and put this on hold and not charge me.

Going forward, i asked Bovis sales manager to put their reasons and the two solutions down in an email to me, he said he will get it done later today. I will wait to see what they write.

hazyjo

I would definitely speak with my solicitor to see what your legal rights are. He can go through the contract in depth. Bovis may change their minds if you go in with actual facts and have things to quote from your solicitor. Or take your solicitor along to a meeting. Could be money well spent (presuming you still want the same house/deal).

Jx

jamesml

If you want the house then fight it. The whole point of that reservation is to secure it. I would personally be telling them its not good enough, they signed to agree and if they screwed up then that is not your fault, and they should be honouring their mistake.

dotdash79

I think if they said they would charge you £21,000 rather than £230,000 then I could see there point and they might have a way out however the price difference is less than 10%.

Road_Hog

sslondon wrote: »

Hello all
Thank you for all your replies and then link to consumer code for home builders, i will go through that in detail -

Okay, from many years in sales management, here is my advice.

Somebody needed to hit their sales target and you went in on the last day of August (Saturday 31st).

That is probably one reason you are where you are, the other is it is the hook and bait sales tactic. Sell you the house, give you the weekend to chat with your other half about 'your' new home and fall in love with it.

Then comes the call on Monday (or whenever), oh, we've made a mistake, we dropped a testicle, my boss has told me off. I can guarantee you that the directors do not approve every sale. Think about it for a moment. How does a very senior member of a company have time to look at each individual property sale, know the market, know the market value without visiting the property?

It's complete twollocks. Now, I advise against the use of lawyers, be they solicitors or barristers, they're expensive, will tell you what you want to hear and generally the only person that benefits from their use, is them. And I'm talking from experience, I do use them, I've used them this week, but I'm very careful in instructing them. Plus, I should imagine that Bovis have put so many cop out clauses in the contract that it is leakier that a bucket with no bottom.

My best advice is, sit back and have a think. How much did you want the house and would you be prepared to pay more? I know, you're being held to ransom here, but don't let it eat you out, it doesn't do your health any good. So, you either let the house go (any money being returned in full) and move on or pay more.

rpc

sslondon wrote: »

There is nothing that says what happens if they pull out, all the conditions are geared around what happens if we pull out.

What terms are they? As a consumer contract, the courts would probably determine that the builder was on the same (or worse) terms than you are. The builder cannot put themselves in a better position that you (it would be an unfair contract).

Turn them on the builder and tell them to abide by them.

[Deleted User]

You should ask for a complete list of what they are saying they under-estimated the cost of, and what they are willing to provide at the agreed price. If it boils down to not turfing the garden or doing some kitchen tiles you could just get it done yourself for a fraction of the cost.

The best thing to do is probably stall for as long as possible. Once the house is finished and the work done they won't want to sit on it, and have a buyer waiting, so will be under pressure to agree to your original price. Maybe you could mention, causally just like they did with the "several thousand more", that if you cancelled there would be "several thousand" in fees for out-of-pocket expenses like solicitors and arranging a mortgage.

At this stage it sounds like they are hoping you just pay up, not seriously negotiating. If you present a strong front and make it clear you are not a push-over some kind of reasonable compromise may be possible.

martinsurrey

rpc wrote: »

What terms are they? As a consumer contract, the courts would probably determine that the builder was on the same (or worse) terms than you are. The builder cannot put themselves in a better position that you (it would be an unfair contract).

Turn them on the builder and tell them to abide by them.

standard terms are that the buyer can pull out and get the reservation fee paid back less a charge for work already done.

so very easy for the buyer to get out, not too hard for the builder to get out either.

dont forget that this is NOT an exchange contract so the OP is not 10's of thousands of pounds out of pocket.

The OP is at BEST looking for hundresds of pounds not thousands, and even then, since it was less than 2 working days before the OP became aware of the issue even this will be limited, what costs can you actually identify and quantify?

Road_Hog

martinsurrey wrote: »

The OP is at BEST looking for hundresds of pounds not thousands, and even then, since it was less than 2 working days before the OP became aware of the issue even this will be limited, what costs can you actually identify and quantify?

This is the bit that people don't understand, they're all quick to say, get a lawyer, but don't understand how the law works. Yes, there is heartache here, but the courts don't judge on heartache, they judge on costs/loss of earnings etc.

rpc

If all the contract stipulates is that costs for work done are retainable, then I agree that OP is on a hiding to nothing. Had they instructed a solicitor, they could perhaps reclaim those costs. If their MA charges them, they could probably reclaim those costs if they can't reuse the work.

OP says

all the conditions are geared around what happens if we pull out

Which makes it sound a bit more grandiose. If the contract goes further than "costs for work done" then there might be opportunities to push for more. There was consideration, this is a contract and the determination clauses within that contract will (if fair) be binding.

OP could argue that their losses are the few extra thousand they are being asked to pay. OP could argue that Bovis are estopped from changing the price although they are at a bit of an early stage for this. OP could also end up with nothing but a few weeks of their life they won't get back.