New build con artists?

Newbie19719802

Hi all,

I would appreciate some advice/opinions on a situation I currently find myself in.

Just had an offer accepted on our dream home, first time buyers chain free so we're in a decent position.

The vendor is buying a new build property in which they are part-exchanging 'our' property for.

So far so good , until we receive a call from a company on behalf of the building company. They state that as part of their terms and conditions we have to use not only use their broker for a mortgage, but also their recommended solicitor. We've already got a mortgage organised, they would accept our offer if we didn't. Seems ridiculous.

Baring in mind we've already used a broker and solicitor for a previous property (which fell through) do you think they are trying a cheap tactic to get commission from other firms? Surely it would be a conflict of interest for us to have the same solicitor as them. I'm sure they would jump in aid of the building company over us if something went wrong, as they are giving them thousands of pounds worth of work.


Any thoughts would be much appreciated

:money:

Newbie19719802

I tried to add a link for the part exchange scheme but as a new user it wouldn't let me.

The building company is linden homes and they have a part-exchange page with more information.

NobodysChild

Newbie19719802 wrote: »

Hi all,

I would appreciate some advice/opinions on a situation I currently find myself in.

Just had an offer accepted on our dream home, first time buyers chain free so we're in a decent position.

The vendor is buying a new build property in which they are part-exchanging 'our' property for.

So far so good , until we receive a call from a company on behalf of the building company. They state that as part of their terms and conditions we have to use not only use their broker for a mortgage, but also their recommended solicitor. We've already got a mortgage organised, they would accept our offer if we didn't. Seems ridiculous.

Baring in mind we've already used a broker and solicitor for a previous property (which fell through) do you think they are trying a cheap tactic to get commission from other firms? Surely it would be a conflict of interest for us to have the same solicitor as them. I'm sure they would jump in aid of the building company over us if something went wrong, as they are giving them thousands of pounds worth of work.

Any thoughts would be much appreciated

:money:

I have heard about this dirty little trick being pulled by a number of companies. However, I am not sure whether they are breaking any laws by refusing to let you buy unless you use their 'services.'

Maybe ask Trading Standards? CAB? Even your own mortgage lender and solicitor may be able to tell you if they are breaking the law by refusing to let you buy the house unless you use their services.

However, it is absolute hogwash that it's 'law' that you must use their mortgage company and solicitor.

I reckon a few years down the line, these kind of companies and their shady tactics will be called into question for mis-selling, along with the banks for mis-selling PPI and other insurances that people didn't want or need. They are even starting on banks getting people to switch to accounts that cost £7-15 a month with special privileges that they could not use. (eg: holiday insurance that only covered up to 55 y.o when the customer was 58 and so on...)

On my local radio station the other day, some local solicitor put out an ad saying 'have you been sold windows, doors, or a conservatory, or a porch that you did not need or want?...Call 0898 *******.'

So they are all at it now! And I reckon that companies like this - who bully people into using their solicitor and mortgage lender will eventually be in the firing line for the same kind of butt kicking as the PPI bullies and so on!

I think you may have dodged a bullet: this company sound awful. Do you WANT to buy a house from blackmailing bullies?

jc808

So a third party compleltely unrelated to you, who represent a company your vendor are buying a house from, want to dictate your mortgage terms and who you use as a solicitor?

Cant believe youre even entertaining this - id tell them to go poke it.

Id start looking elsewhere - doesnt sound like your vendor is serious.

silvercar

So far so good , until we receive a call from a company on behalf of the building company. They state that as part of their terms and conditions we have to use not only use their broker for a mortgage, but also their recommended solicitor. We've already got a mortgage organised, they would accept our offer if we didn't. Seems ridiculous.

And what would they do if you didn't need a mortgage and were a solicitor yourself?

jc808 wrote:

So a third party compleltely unrelated to you, who represent a company your vendor are buying a house from, want to dictate your mortgage terms and who you use as a solicitor?

I'd tell them exactly that ^^^. You are not bound by their terms. You have no contractual relationship with them. Would you allow any other buyer of your home to dictate who you get a mortgage with? The idea of your buyer choosing your solicitor is beyond a joke.

Just tell them you have everything arranged, chances are they will sulk and agree.

DRP

As others have posted - they're trying it on. I wouldn't be happy with this for all sorts of reasons.

If they persist it sounds like you're going to have to pull the plug.

PS. surely if your vendor is part-exing for a new build then the builders are buying the property, not you? (which means you are buying off the builder, not the 'vendor')

moneyistooshorttomention

Can you get the vendor (ie the home-owner - not the builder) onto this and tell them "Your building company is trying to pull a stunt on us and its making us wonder whether we can proceed with buying your house from you").

Point out to the vendor that this building company is likely to try and pull the same stunt with any subsequent buyers of their home and they could find themselves losing several buyers in a row and losing their own home they want (ie the new build).

I would have thought the home-owner would have some leverage if OP doesn't.

davidmcn

moneyistooshorttomention wrote: »

Can you get the vendor (ie the home-owner - not the builder) onto this and tell them "Your building company is trying to pull a stunt on us and its making us wonder whether we can proceed with buying your house from you").

Possibly, but they may well already be in a contract with the builders.

theEnd

Newbie19719802 wrote: »

The vendor is buying a new build property in which they are part-exchanging 'our' property for.

Does this make it more complex? Is the vendor selling their house to the building company, who are then selling to you?

Still don't think you should use who they recommend.

pinkteapot

I'm confused... So the vendor is part-exchanging their house to the building company, and you're buying from the building company?

Why doesn't the vendor just sell to you in the normal way? They'd probably get a better price!

Who exactly are you buying from? If you're buying from the vendor, they're not part-exchanging...

pinkteapot

Oh, here's the Linden part-exchange page mentioned earlier:

http://www.lindenhomes.co.uk/offers-incentives/part-exchange

To speed the process up, we recommend you use our preferred solicitor and mortgage broker to proceed with the purchase of your new home.

1. This information is for the vendor, not the buyer of the part-exchanged house.

2. It's recommended, not "you must". Because they know they're not allowed to say that.

Tell them a polite but firm no. You've got your broker and solicitor lined up and will be using them. If they insist there are T&Cs, ask to see them and post the wording here. I can't believe it's enforceable.