Should I stuck with the developer's solictors or change him

Sassii

I'm a first time buyer and we are currently in the middle of exchange contract at new build purchases with Taylor wimpy We used the developer's recommended solicitor to do the conveyancing because of the incentives that seller offered if I did that.

After I sent my comments on the contract to solicitor and got reply, I'm not happy with that reply as I have the feeling the solicitor working only on behalf of seller and push me to accept the contract as it is .

Can I change the solicitor at this stage as I have only 14 days to meet exchange contract dead line.

Below is my comments and reply from recommended conveyancer (not from seller / seller solicitor) for any one has time to read and advice.

Thanks very much for all of you





Could you please ask Taylor Wimpy to confirm exactly when they issue the contract? Also could you please ask them to extend the contract exchange dead line as I got the contract on 17/01/2014? – we will ask the Developer’s Solicitors if they will agree to a slight extension.



Below is my notes for documents I got ( Please fill free to add any)



Contract:



1-Item 1.3: As during reservation: Integrated Kitchen £2998, Shower over path £609 & Flooring £2000 so total is £5,607 not £5, 499 (as written in the contract) – we will ask the Developer’s Solicitors

2-Could you please ask Taylor wimpy to fix the date of legal completion ( not completion window) and the date of hand over of the home (as per the Consumer Code for Home Builder Clause 3.2) . – completion will be on 10 working days’ notice

3-Could you please clarify how my deposit is protected?. – if the Developer were to become insolvent, the NHBC would protect your deposit and complete the build.

4-Item 8: Could you please ask Taylor wimpy to add compensation for myself with the terms of item 8 if Taylor wimpy failed to meet the completion date. That to meet the Code Clause 3.1 for contract must be clear and fair. – the Developers will not agree to make compensation payments.

5-Item 11: if the provisions of the Party Wall etc. Act 1996 shall not apply, how this will affect my rights. – this gives the seller the right to build

6-As I see from Plan 1 drive way is part of free hold of the house, Is that right? – your property is outlined in red.

7-What will happen if the seller breaches the contract? – the seller will not put themselves in a position where they are in breach of contract.

8-Why there no Actual house area mentioned in the contract? Could you please ask Taylor wimpy to add to the contract? – your property is defined on the front of the contract as a freehold property known as plot 911

9-Why there is no floors plan drawing or rooms dimension with the contract? Could you please ask Taylor wimpy to add to the contract? – we are not provided with any floor plans or room dimensions, please contact the site in this regard

10-Could you please advice what will happened for my deposit if I died before completion date? How my family get the deposit back? Is there any insurance protect that?. – once you have exchanged contracts, the deposit remains with the developer. If you were to die, prior to completion, the law currently states that you would be in breach of contract. if this is a concern, we would suggest you take out life insurance.

11-Could you please advise is the contract complies with Unfair Terms in Consumer Contracts Regulations 1999 or any other law can be related to this transaction?. – the contract is CML compliant and therefore is judged to be a fair and reasonable contract.



If Seller reject to add any items I mentioned or any advise from you please I need written confirmation for that from The seller / Seller solicitor.



Your letter dated

Title:
– Exchange Dead line



1-Front sheet: point 4 not received up to now. Could you please send by e-mail? – this has been sent to you

2-A contract rate: I believe it’s unfair in the contract to save the seller right of compensation for delay from buyer and there is no the same right for buyer. Could you please add another item to save the buyer right as mention in point 4 above? – the Developers will not agree to any amendments in the contract

3-There is no item in the contract talking about forfeit the deposit, Is this by law and which law?. – the Developers will not agree to any amendments in the contract.



Your letter dated

Title: Re:



1-Is there possibility to get tax return? – we will submit your stamp duty payments to the Inland Revenue and will receive a certificate from them to allow us to register your property



Your Notes & General Report To Client



1- Completion date: I’m confused about that, is that meaning there is no completion date and depending only on seller notice? You are correct. You will exchange without a fixed completion date.
What is the completion window for? – the completion window is a guideline of when your completion is estimated for

2-Please ask Taylor wimpy to add item clarify that Minor Works don’t affect occupation, moving in & normal living in the house or it will be consider as Major works. – you will have to complete your purchase whether or not there are minor works outstanding

3-Freehold Information: As I understand from your notes we rely on the contract only? Is the transfer set is part of contract / lawful? Which one of them has more powerful? – the contract is a legal document which binds both the purchaser and the seller to the contract. The Transfer transfers the property into your name and sets out rights and restrictions which you have to comply with.



Also I want to ask about:



1-Is the seller will compensate me, give me discount & pay full stamp duty if completion date / Extended Completion date not met? – the seller will not provide you with any compensation

2-Could you please ask the seller for list price of all fixtures / fittings that could help to reduce the stamp duty? – The seller will not agree to this

3-Can I fix Electricity Solar Cells? – please speak to the site office





Could you please get feedback from seller for the above mentioned points as dead line is very soon?



I’m still reading all documents you sent hopefully there is no more issue

anselld

It is a bad idea to use the developer's solicitor for obvious reasons, but it is probably too late to change now.
Having said that, the replies seem reasonable and I doubt any solicitor would have much joy in getting a big developer to reword their standard contract.

kingstreet

The solicitors our builders use are all good firms and none of them actually do any work for the builder itself. The builder's firm is a different solicitor completely.

Normally, builders have a panel of solicitors they offer because these firms deal with the builder and the builder's solicitor on a regular basis.

They don't accept anything untoward from the builder or their solicitor. They are bound by their own ethics and regulation and are normally acting for a mortgage lender and the purchaser.

As a newbuild broker, we are the same. I've never once told the builder something which would disadvantage our client. Plenty of clients pull out of builder purchases for one reason or another. Sometimes, it's for property reasons, sometimes it isn't. I've never had someone pull out because of us or the solicitor they used being on a builder panel.

chanz4

Your not going to win, either accept the contract or pull out

ethank

I bought a house from Taylor Wimpey. I would say if you want a guarenteed completion date buying a new build offplan is not the way to go.

I've given some comments to everything you said. I would think carefully before going to another lawyer, and you have not mentioned one thing that I consider weird.

Sassii wrote: »

As during reservation: Integrated Kitchen £2998, Shower over path £609 & Flooring £2000 so total is £5,607 not £5, 499 (as written in the contract) – we will ask the Developer’s Solicitors

Have you not obtained the items cheaper? What is the issue here?

Sassii wrote: »

Could you please ask Taylor wimpy to fix the date of legal completion ( not completion window) and the date of hand over of the home (as per the Consumer Code for Home Builder Clause 3.2) . – completion will be on 10 working days’ notice

Has your house been built yet? It is unlikely that any builder can fix this until a couple of weeks before the house is ready because the developer cannot guarantee when the property will be finished. Hence them completing on notice. This is because the build timetable can change dependent on weather, availability of materials etc.

Sassii wrote: »

Could you please clarify how my deposit is protected?. – if the Developer were to become insolvent, the NHBC would protect your deposit and complete the build.

This is correct.

Sassii wrote: »

Could you please ask Taylor wimpy to add compensation for myself with the terms of item 8 if Taylor wimpy failed to meet the completion date. That to meet the Code Clause 3.1 for contract must be clear and fair. – the Developers will not agree to make compensation payments.

TW will definitely not agree to this. However, if you suffer a loss because you have to get a new mortgage deal as you have not completed in time, they may cover this.

Sassii wrote: »

if the provisions of the Party Wall etc. Act 1996 shall not apply, how this will affect my rights. – this gives the seller the right to build

They can't build next door without this.

Sassii wrote: »

As I see from Plan 1 drive way is part of free hold of the house, Is that right? – your property is outlined in red.

This is normal

Sassii wrote: »

What will happen if the seller breaches the contract? – the seller will not put themselves in a position where they are in breach of contract.

They are unlikely to, but as with any breach of contract - you could litigate with them.

Sassii wrote: »

Why there no Actual house area mentioned in the contract? Could you please ask Taylor wimpy to add to the contract? – your property is defined on the front of the contract as a freehold property known as plot 911

This is normal - sometimes the house is sold before the council agrees the address. Areas are also not required by Royal Mail.

Sassii wrote: »

Why there is no floors plan drawing or rooms dimension with the contract? Could you please ask Taylor wimpy to add to the contract? – we are not provided with any floor plans or room dimensions, please contact the site in this regard

Again this is usual, and if the floorplan is slightly smaller or bigger, then they cover themselves in the contract. There is a margin for error allowed. You can also download the floorplan for your house on www.TaylorWimpey.com

Sassii wrote: »

Could you please advice what will happened for my deposit if I died before completion date? How my family get the deposit back? Is there any insurance protect that?. – once you have exchanged contracts, the deposit remains with the developer. If you were to die, prior to completion, the law currently states that you would be in breach of contract. if this is a concern, we would suggest you take out life insurance.

If you die your estate can complete and immediately sell the house (although unlikely to get the full price) alternatively if your life is assured, then this would repay the debt, and the house could be passed to a beneficiary.

Sassii wrote: »

Could you please advise is the contract complies with Unfair Terms in Consumer Contracts Regulations 1999 or any other law can be related to this transaction?. – the contract is CML compliant and therefore is judged to be a fair and reasonable contract.

TW are unlikely to issue you with a contract which would be legally unenforceable.

Sassii wrote: »

A contract rate: I believe it’s unfair in the contract to save the seller right of compensation for delay from buyer and there is no the same right for buyer. Could you please add another item to save the buyer right as mention in point 4 above? – the Developers will not agree to any amendments in the contract

This is actually normal and would be in any sales contract. It protects the seller from you failing to complete.

Sassii wrote: »

There is no item in the contract talking about forfeit the deposit, Is this by law and which law?. – the Developers will not agree to any amendments in the contract.

You will forfeit your deposit if you do not complete. This is normal.

Sassii wrote: »

Is there possibility to get tax return? – we will submit your stamp duty payments to the Inland Revenue and will receive a certificate from them to allow us to register your property

You can pay it yourself within 30days but it will delay the registration with the Land Registry. You cannot pay it on a tax return at some point of the future.

Sassii wrote: »

Completion date: I’m confused about that, is that meaning there is no completion date and depending only on seller notice? You are correct. You will exchange without a fixed completion date.
What is the completion window for? – the completion window is a guideline of when your completion is estimated for

TW will give you two weeks notice that you can move in.

Sassii wrote: »

Please ask Taylor wimpy to add item clarify that Minor Works don’t affect occupation, moving in & normal living in the house or it will be consider as Major works. – you will have to complete your purchase whether or not there are minor works outstanding

All newbuilds will have 'snagging' and they will have a period of time to fix these minor issues.

Sassii wrote: »

Freehold Information: As I understand from your notes we rely on the contract only? Is the transfer set is part of contract / lawful? Which one of them has more powerful? – the contract is a legal document which binds both the purchaser and the seller to the contract. The Transfer transfers the property into your name and sets out rights and restrictions which you have to comply with.

One is a contract of sale and the other relates the transfer and any covenants you have on taking the transfer. They do different things, and both are legally binding.

Sassii wrote: »

Is the seller will compensate me, give me discount & pay full stamp duty if completion date / Extended Completion date not met? – the seller will not provide you with any compensation

No chance unless they have caused you to have a loss.

Sassii wrote: »

Could you please ask the seller for list price of all fixtures / fittings that could help to reduce the stamp duty? – The seller will not agree to this

Illegal under HMRC tax law

Sassii wrote: »

Can I fix Electricity Solar Cells? – please speak to the site office

In most cases you have to issue a lease of your roofspace - could make it difficult for you to sell your property.

Sassii

Thanks very very much for your time to explain each point to me. Only my concern is without fixed completion date / window how can I get my deposit back if they didin't complete the house for a years ?.

kingstreet

FWIW if you need a mortgage, stamp duty has to be paid to the solicitor with the other funds, in advance of completion. You can only take the 30 days and pay it yourself if you are a cash purchaser.

CML Handbook rule 10.4.

RDG

Taylor Wimpey want to complete the house as soon as they can as they dont get anything until they do, have other properties been finished and completed on the site? Are there more to do after yours? If yes to either then they are going to finish and complete as soon as they can, bear in mind that this time of year can be unpredictable for build programmes due to the weather, cold snaps can stop concreting works for weeks.

kingstreet

Sassii wrote: »

Thanks very very much for your time to explain each point to me. Only my concern is without fixed completion date / window how can I get my deposit back if they didin't complete the house for a years ?.

It's normal to complete "on notice" on a newbuild.

You may be able to have a long-stop clause inserted in the contract, which would give the builder a certain amount of time to finalise the build.

Ask your solicitor for their thoughts. I've only seen it mentioned once on here in the last few years.

AnnieO1234

OP do you know or find out from the original planning permissions, how long the development has been going? If you don't have the documents or don't know how to access them PM me.

How large is the planned development? How close are they to where your plot is? Has building even commenced?

Certainly back in 2008, plenty of people we're in your position had exchanged even but then builders quit building. I'm sure that your solicitor, or a colleague of theirs, will have come across this before. I'm pretty certain there will be guidance somewhere for what is reasonable to expect in relation to how soon after exchange a build must be complete.

Do you have the whole deposit or are you using the Help to Buy scheme or similar? This will put a slightly different complexion on matters.

How much do you want this house? If you don't, and can afford to, walk away now.

I echo what others have said, you probably shouldn't have used the recommended solicitor, but at the same time there is nothing unusual in their responses and as is the case with most developments, the builders solicitor simply will not budge. The difficulty they have is that, particularly in relation to covenants, all contracts must be the same (within reason).

Axxx

Sassii

AnnieO1234 wrote: »

OP do you know or find out from the original planning permissions, how long the development has been going? If you don't have the documents or don't know how to access them PM me.


Axxx

Thanks All of you.

It's the last stage in the development. the closest finished building is about 75-100 meters. the development contains 1000 units ( Building & Houses) in 7 satages.

I have the whole deposit.