New Build Developer Threatening To Pull Out Due To Impatience

farmergiles65

Something really nasty has come up with my house purchase of a new build from a reputable developer. I'm selling my flat to pay for the new one and all mortgage applications, etc have been successful, however.............

To put it in short terms, the leaseholder management company took forever to get a simple management pack to the solicitors. It seems also that the buyer's solicitors did nothing productive while they waited for this one pack. Due to this the exchange date has over run and it was meant to take place in May. Now things are progressing except the upper management of the developer have pulled this belter on me first saying that if the exchange date overruns too much they will pull the plug DESPITE the fact that I've paid a reservation fee and paid a ton of money on extras doing up the house. They informed me of this about a week ago saying it as a warning then around the same time about a day later they came back to me saying that if it didn't exchange by the end of today I would lose the house. So literally they have given me less than 4 working days notice. As you can imagine this has sent my anxiety attacks to maximum.

The stress I've had this week in hurrying up the solicitors (note it's the buyer's solicitors, not mine that are causing the hold up) has been too much. I can't take it.

But what puzzles me and everyone else is how the developers think they can do this. It's not even the small site office doing it, it's the upper management in the head office. Where in legal precedent can it possibly say that if a small delay occurs we can simply go "nope sorry we're bored, tough !!!!" even when I myself have done everything on time, to the letter, paid all fees and have literally been ready to exchange in full for 2 months solid. Is this an empty threat, can they really do this? Do I have the ability if things go south to go to war them over this decision?

I can only hope things improve today, but everything is out of my control and I hate that feeling. Literally it's minor nitpicks that are left, in fact it's all on their side, all my stuff is done, the purchase is ready to go, it's solely the buyer's solicitors taking forever with a simple management pack. There isn't even anything dodgy with my place. It's a new build itself, no repair issues, no service charge arrears, etc.

Any advice you have on the subject would be greatly appreciated!

arbrighton

But you are NOT ready to exchange as your purchase is contingent on sale of your flat.

It is common practice for a reservation to state 28 days to exchange for new build.

farmergiles65

But it is purely a delay issue from my leaseholders taking too long to submit a document. That's it. I mean house sales/purchases run into delays all the time, it's completely unrealistic to specify that you HAVE to do it within 28 days. and to be honest I didn't even get asked about the management pack payment until the time in May when I expected to be exchanging. So it's all 3rd parties - the ones WHO ARE SUPPOSED TO WANT THIS TO PROCEED TO GET MONEY, who have delayed it. How is it ethically justified to simply get impatient and ruin people's lives for doing nothing wrong. They want to take their ball and go home, why don't they simply just reduce any commission or similar to the solicitors helping out, same goes for the estate agents?

If I had personally delayed matters, then fine I wouldn't be bothered, my fault. But for this to threaten my future because of others incompetence is just plain wrong.

hazyjo

Arrange a face to face meeting (and cry!).


Maybe say you'll email them daily saying what you have done (chased again?) and what you are waiting for (I did this with the last EAs I bought through and it seemed to keep them off my back). They just want to know you are committed and doing all you can. They're failing to meet a target so will get peed off. Unfortunately, what they fail to acknowledge is that the average sale/purchase takes 12 weeks.


Good luck.


Jx

eddddy

They almost certainly have the right to pull out of the sale to you.

However, they just want the property sold and the money in the bank as quick as possible. So, essentially, you need to reassure them that sticking with you will result in an earlier exchange than finding a new buyer.

Do you have any hard evidence (e.g. solicitor's letters) that show that your buyer is almost ready to exchange? If so, you could try sending copies to the head office team, along with a proposed new deadline for exchange.

Try to reassure them with facts, dates etc, rather than any emotional stuff.

Also, tell your EA to inform your buyers that unless they exchange within days the chain is likely to fall apart.

farmergiles65

Every party is aware of the severity, even the solicitors - although how seriously they are taking this is down to guesswork. There are a ton of emails showing my committment both emotionally and financially. There is no way they can possibly sell this property to another party and get the money in quicker than this exchange will as we're literally on the final stage. I'm all set and ready, it's purely the buyer's solicitors getting their "nitpick" queries resolved, even the buyer herself is ready. I even offered to personally drive myself AND the buyer to any office required to sign documents etc if need be as I have the flexibility to do so.

There is no question that the commitment is there and that we're 99% ready to go. But it's the ultimate !!!! move for them to do this and with barely any notice. If they said at the end of May, you need to sort this out we're pulling out at the end of June, that's fine, thats a good acceptable notice period. But 4 working days??? FOUR?!?! Clearly they've haven't dealt with many property sales before if they think sales turn around in 4 days.

Proof that money means more than ethics to a head office.

Freecall

farmergiles65 wrote: »

Proof that money means more than ethics to a head office.

Although I understand your frustration the fact is that their suppliers and employees want paying in money not ethics.

I would move away from any kind of moral argument and get back to reality. If you persuade them that you can exchange more quickly than anybody else then they will be happy to proceed as planned.

eddddy

farmergiles65,

TBH, if you're saying this sort of stuff to the developers, you're probably scaring them, rather than reassuring them.

I expect they have a quarter-end at the end of June and they simply want exchange before then.

You should be concentrating on convincing them that exchange will happen, with evidence.

Just saying "it's not my fault" and telling them they're immoral probably won't help.

alice_kate_2

Which developer is this? We had similar and I spoke to them and they were okay...

richard2511

I do not want to scare you more but you should read the story on the following forum of what happened to us:

https://forums.moneysavingexpert.com/discussion/comment/70839827#Comment_70839827

The power that new builders have over genuine customers is horrible.

Fingers crossed for you!!

farmergiles65

alice_kate wrote: »

Which developer is this? We had similar and I spoke to them and they were okay...

The developer is Redrow - and I say reputable given that my brother used them and had no issues whatsoever with his purchase.