28 Day Exchange of Contracts

Cowster

Hi,

We have just paid a reservation fee of £500 to Miller Homes where there is a 28 day deadline to exchange contracts.

Our solicitor seems to think that this 28 days starts when he recieves the required documentation from Miller Homes to start the process, while Miller Homes (sales adviser) says the 28 days starts from when we signed the contract and keeps stressing the importance of this date.

The 28 days runs out on the 2 July and we arranged our Mortgage through a Broker yesterday - he seemed to think we would not meet this deadline to recieve our offer. Our solicitor has still not recieved any documentation from Miller Homes who was very abrupt with us today when we wanted to raise our concern about this deadline (we had mentioned it before).

We are now worried as the price of the property next door to ours went up by 8k in the first week due to the demand of the site and we also have incentives of carpets and a shower included in our reservation (no other incentives are being given on other plots). It clearly states that the property can go back on the market if we fail to meet this deadline on the reservation form and that incentives can be reviewed.

Does anyone know of when the 28 days does start? The solicitor says were worrying unduly yet Miller Homes are telling us something else.

Thanks for any replies.

mightymouse

Hi

You would need to look at the small print in the paperwork you signed with Miller homes with whom you made the contract.

The date you signed the agreement is the date that counts and clearly what the agreement says will be final.

I would be inclined to tell your mortgage broker what the situation is and see what alternatives there are if you need to make them

AlexUK_3

I've purchased homes from WE Black and Bellway over the last five years and both did the 28 day exchange. I had the exact same response from both solicitors (different used for each) that the 28 days start when they get their papers! Builder said different.

In the end both exchanged after about 35 days, as soloicitor said they aren't going to scrap deal if we are only a couple of days off exchanging on 28th day luckily they were right both times.

I did inform the builder both times that my solicitor hadn't received anything yet and we were a week down the line in both cases!

brock-cruse

Currently buying a repo with the same said 28 day time constraint and my sol said it went from when he received papers. Seems a bit unfair if your sol has not yet received the paperwork. PLus my mortgage broker knew of the time constraint and was able to recommend a mortgage company that had a competitive deal but also that she knew would act quickly...get your broker to be chasing it all the time.

Cowster

There is no small print in the reservation - it just says clearly that it is only reserved for that length of time. I did tell my broker the time contraints so I will be chasing this for sure. I just hope it works out like AlexUK in that its not far from completion nearer the time, I wouldn't be as concerned if there was not such demand and they could get more than we paid if it went back on the market. It seems strange there is not a clear rule about the 28 days starting period - I agree you would think it would go off when we sighned the reservation but then how can the Sol start any proceedings without the paperwork!

silvercar

The 28 days runs out on the 2 July and we arranged our Mortgage through a Broker yesterday - he seemed to think we would not meet this deadline to recieve our offer

I would have thought your broker should be looking at deals from lenders he knows work quickly.

mightymouse

Hi

Its PROBABLE that Solicitors are right after all if the paperwork never arrived then would the vendor be in breach, I would still do everything possible to bring everything together asap.

brock-cruse

Hi
My sol told me that he was uanble to start the local search (the one that takes forever!) until he had received all the paperwork with all the plans etc so that could be a major hold up to Mind you not sure this applies to a new build???!!

Cowster

Yea my broker did recommended one that he thought might be a bit quicker but still thought there was not much chance. We'll just have to keep pressing - not much more we can do I guess. I think they still have to do a local seacrch on a new build.

mightymouse

brock-cruse wrote: »

Hi
My sol told me that he was uanble to start the local search (the one that takes forever!) until he had received all the paperwork with all the plans etc so that could be a major hold up to Mind you not sure this applies to a new build???!!

It is worth asking if he can forego search and use insurance or can they be done online, just a thought.