New Build - thought i'd secured plot

gregsayer

Hi all,
I visited a development by ben bailey homes, (with my brother, as he was completing the paperwork on his purchase of his house)
as I was also looking to move I asked the sale lady about further plot releases, as all the current ones had sold, she told me I was in luck, as someone had pulled out of a nearly completed plot, next to the show home.
After looking at the show home, I pretty much fell for the house, and told her I was really interested, this was at closing time on a Friday.
I then came back at opening time the next day, for further info, and was given the details of the house, the company's recommended mortgage broker etc.
I went home and phoned the mortgage broker, who went through everything and asked my permission to tell ben bailey I was interested etc.
I then went back the following day at 11am (their opening time) and waited for 30 mins for the lady to turn up.
I asked to see what choices had been made already, and what could be changed, she agreed she would get the gas hob changed for me.
I had also told her from the start that I'd like to use there home sell service, and she arranged for 3 valuations to be done on my house (even though I already had a estate agents valuation letter from previous).
meanwhile I'd received a agreement in principle from the mortgage broker and I didn't follow up another house I'd spoken to bovis about nearby, which then sold.
the following week, 3 agents turned up to value the house (Thurs & Sat). I then didn't hear anything till Monday, when I chased the company ben bailey use to manage the estate agents.
they told me that ben bailey had the report and would contact me.
I tried calling ben bailey on Monday, Tuesday and Wednesday, with no luck
on the Thursday, I called their head office, who said they sales office had phone issues, but somehow they still transferred me (????)
and then I was told.......THEY HAD SOLD IT TO SOMEONE ELSE!!!!
totally guttered, apparently they other buyers had come in on the Saturday and bought it on the spot, and as someone in rented accommodation, they were a priority as it was a quicker sale then mine.
(in fact I had told her I would not have any trouble with selling mine anyway, but she wasn't interested, I've then put my house on the market (this Friday, and a week later) but to prove the fact, that within 36hrs of being on the market, I've had 5 viewings already!)


is this normal, do I have any recourse? I thought I'd done enough for them to realise I am serious about buying the house? that included 5 trips to the sales office in 2 weeks, at least 8 phone calls, and the interaction from the mortgage broker....

kingstreet

I don't know any vendor, builder or private seller who would favour someone not in a position to proceed over someone who is, regardless of the amount of interest the person was showing.

It's usual for sites to close mid-week when it's quieter as they are open at weekends.

Their treatment has been a bit shoddy, but they have done exactly what most sellers would do.

WeAreGhosts

If you don't have any paperwork to show you've reserved the plot, then they're free to sell it to whoever they want

nidO

If you hadn't yet paid any reservation fee for it all they had so far was you being interested in the possibility of maybe buying the house, if you could get a mortgage together, if the value they offered for your house was acceptable to you, etc.

Someone just being interested loses out to someone willing to sign, unfortunately for you.
Until you've paid the reservation fee to commit, they're going to treat it as first-come, first-served.

gregsayer

I offered to pay a deposit, but she wouldn't take it until my house was on the market with them, which was literally 2 days away.

ethank

They generally will not take a reservation from anyone even just on the market. You need to be in a proceedable position - Sold Subject to Contract.

lessonlearned

gregsayer wrote: »

I offered to pay a deposit, but she wouldn't take it until my house was on the market with them, which was literally 2 days away.

No they wouldn't be able to accept a reservation fee until all the valuations had been received and a marketing stragey agreed with you.

The standard proceedure on new builds is that the negotiator will put the property "on hold" for you whilst the home selling package is put together. However, being "on hold" is not legally binding so if someone comes along who is able to proceed then they take precedence.

This should have been explained to you.

Mickygg

gregsayer wrote: »

I offered to pay a deposit, but she wouldn't take it until my house was on the market with them, which was literally 2 days away.

This therefore means you had not reserved the plot as you were not in a proceedable position.

Unless you pay a deposit and have the proof receipt the house is not reserved.

gregsayer

just had a voice mail from ben bailey (now avant),


the women said she's been told that they will be released this week (as if she's doing me a favour for telling me), but the price has gone up £11,000! with a single garage, instead of a double, half size rear garden and a less desirable plot!!


they want me to reserve asap as they have lots and lots of interest in the plots (but they haven't been released yet???)


also, these plots aren't even past the foundations yet, so wont be ready till late spring /early Easter!!
where as the plot I describe in the 1st post, is ready in a few weeks.




as the £11k tips me over my budget and the LTV ratio by £10k, I certainly wont entertain!

Humphrey2012

Hi Gregsayer - I think the other posters are correct in that builders won't reserve a house or take a reservation fee until you are under offer, however it seems like they didn't explain themselves well at all.

I understand that the new plots seem bad in comparison, but could you speak to them about any incentives they might offer you? Would they pay stamp duty or include carpets?

It's just a thought as clearly prices are going to keep climbing and if you fancy a new build this might still be the best option.

Good luck - the whole thing with moving is so stressful.

kellaree

gregsayer wrote: »

as the £11k tips me over my budget and the LTV ratio by £10k, I certainly wont entertain!

Find somewhere else. They are taking the mick.