do builders ever pull out of sales?

tuftyclub

As a ftb I got an offer of about 18% discount accepted by a very small (<200 houses a year) builder to (best endeavors) complete by Christmas. Offer was accepted around 4 weeks ago and it is the last house on a site of 8 already sold. So they are keen to get off the site. They have no help to buy etc available.

I had all finances etc sorted already so paid my 1k deposit to them and then instructed a solicitor(not internet based - local company) who has proven to be a real dissapointment. Slow to the extent that I am told there is no way we can even consider exchanging until mid january

I am getting a lot of pressure from the developers, although next to badgering my solicitor there isn't much I can do. I made my offer in good faith - and I see now a little naivity , though with no chain, an empty house and finance agreed. I truely believed we could do it in time

I am very concerned that when it becomes obvious to the developer that I cannot even exchange in December, never mind complete, that they will remarket the house, hoping for another higher offer. . But they could probably get another 10-15k , though it could take time

Anyone had experience of this sort of thing? Are they likely to pull out, as if so I need to start looking at other houses soon as I only have 6 months to get something else sorted or I will lost my mortgage fee etc

Am I worrying unneccessarlily

thanks

Old_Git

so what have you signed to date .

If you have paid a deposit the developer could sue the @rse off you if you dont complete .
http://news.bbc.co.uk/1/hi/northern_ireland/8452370.stm

If its mid January so be it . The legal work can take six weeks or more if you are lucky ,a developer will know that .Has the survey been done yet .Feel free pressurise the solicitor ,but the solicitor will probably be closed for a week at christmas .

Gwhiz

OP, why are you disappointed with your solicitor?

If it's speed, then I would certainly be putting pressure on.

The squeaky wheel get's the oil!

tuftyclub

I haven't signed anything at all,just paid deposit. I am very keen to complete. I certainly won't pull out. Just worried they might try and get more money by re-marketing it when it becomes obvious that I can't complete by end of year . Though I agree it is probably clear to them now!

I am disappointed as:

She (verbally said) it was possible, (though obviously no one can guarantee) to complete by Christmas . Then after I signed up I couldn't get a hold of her as she had annual leave - fair enough, but hadn't actually mentioned this during our initial conversation.

Had I known this I would have gone elsewhere. So nothing happened for a week, when searches could have been requested. Even when she was back, It took a good few days to apply for searches even though the money had been with them for a considerable time. I constantly stressed the need for speed.

Also didn't mention that their office closed from 20th of December onwards. Maybe this is standard in the legal industry. But I was didn't know and wasn't told

So 90% timing - but then last week she told the developers solicitor I was a cash buyer when I wasn't, which caused great consternation.

Gwhiz

Cash Buyer - that old chestnut!

It should mean cash in the bank ready to go.

It can mean a person with mortgage in place and no chain.

If you ever hear the term, ask what they actually mean.

OP - when did you pay the £1000 deposit? If it was 4 weeks ago then it really was pretty unrealistic to exchange in 4 weeks. It CAN be done but it needs the wind behind you.

tuftyclub

Gwhiz wrote: »

Cash Buyer - that old chestnut!

It should mean cash in the bank ready to go.

It can mean a person with mortgage in place and no chain.

If you ever hear the term, ask what they actually mean.

OP - when did you pay the £1000 deposit? If it was 4 weeks ago then it really was pretty unrealistic to exchange in 4 weeks. It CAN be done but it needs the wind behind you.

Paid 19th November. Perhaps it was ambitious, but I don't feel anything has moved since. A month on and I haven't even seen a draft contract.

Interesting info about the description of a cash buyer. I can see the logic of that.

caeler

I don't want to worry you but it isn't unheard of. Builders want the best deal and to get their money quickly. In my experience if they know you are good for it they will hold on but apply plenty of pressure. Where as if they suspect you don't have finance in place, etc they will be a lot stricter with the deadline for exchange and completion.

I completed this time last year and it was incredibly stresful because my conveyancer was much better at a snails pace rather than moving as quickly as the developer demanded. Exchange in 28 days is pretty tough under the best conditions. Anyway I had to go totally loopy with my conveyancer before they took the developers threat seriously. If I didn't complete by Christmas then my sale wouldn't count against their year end and I got such a good deal they would never have honoured the discounts into the new year.

I suppose what I am saying is rock up at your local solicitors firm and let them know what you expect from them. You are paying them a fortune after all!

tuftyclub

thanks for your honesty. I'm pleased to know that I'm not over-reacting.

I'll send another rocket their way. Very frustrating. I am 100% Ok for the money and always was, it is purely the solicitors fault that things are going slowly

Do you think it would be possibly to at least exchange on 31st Dec. Would that count for their year end.?

Leo2020

We had everything in place for the purchase of a new build in regards to surveys on the new house/mortgage offer. We were given two weeks notice to complete, the house hadn't been signed off at that point. We were originally given one week but they generously extended to two weeks. Our buyer's solicitors could not complete by the two week deadline. We tried explaining the situation but to no avail. They re-marketed the property and sold it to someone else. The irony is the house builder was selling out house via a scheme they run - they delayed getting the house on the market by 3 weeks.

Even with the delay they caused they was no flexibility on their part. Our solicitors, estate agent and mortgage advisor all said they just thought that the house builder wanted the sale to go through quicker but wouldn't really pull out. They all said when it's that close to completion they wouldn't do it (we were taking a few weeks delay about 3 weeks funnily enough)- but they pulled out anyway.

tuftyclub

Have just sent an email detailing my fears, as I want it in writing why I am so concerned.

Mobeer

There's probably a difference between being slow and not being able to proceed. As long as the builders think you are just slow I doubt they will pull out. If they start to doubt whether you can proceed then they have to look to sell the property to someone else. I know of one case where the builder pulled out of a deal with a buyer who couldn't get a mortgage, and sold for less to a (genuine) cash buyer.