Off plan purchase screwed up by me

Hoploz

If you agree to a purchase without having funds in place to complete then yes it is a high risk and sounds strange to me.

I kind of get it, but can't see at what point this would happen. If you're not obligated to buy then surely they are not obligated to sell to you either? So you would just cancel, lose your reservation fee, and the builder would sell to someone else.

I can't see a solicitor allowing you to get as far as exchange of contracts without having all the ducks in line for completion.

davidmcn

Hoploz wrote: »

I can't see a solicitor allowing you to get as far as exchange of contracts without having all the ducks in line for completion.

If it's not due for completion for another two years then it's more a question of counting your ducks before they've hatched. Nobody's going to have e.g. a mortgage offer with that sort of lifespan. Your solicitor will allow you once they've explained the risks involved.

steampowered

Hoploz wrote: »

If you agree to a purchase without having funds in place to complete then yes it is a high risk and sounds strange to me.

I kind of get it, but can't see at what point this would happen. If you're not obligated to buy then surely they are not obligated to sell to you either? So you would just cancel, lose your reservation fee, and the builder would sell to someone else.

I can't see a solicitor allowing you to get as far as exchange of contracts without having all the ducks in line for completion.

My understanding is that, with an off-plan purchase, you are required to buy and they are required to sell.

You put down a deposit of something like 10-30% at the point of exchange and pay the rest when the property is built.

If you don't have the finance to complete, you lose your deposit and the builder can sue you for further losses if the price of the property has dropped.

eddddy

everyday7 wrote: »

Most developers allow you to reassign, so I can buy a off plan property, pay the deposit and if something happens and I don't want to complete I can reassign I.e sell the property to someone else. It's fairly common. I am not looking to do this but it's a good option to have if for some reason like job loss If I am unable to get a mortgage to buy. I am starting to think the risk outweighs the benefits but maybe if I had the balls I could make a killing.

You sound like you're quoting the words of an off-plan salesman!

I doubt that a reassignment sale would be as painless as you suggest.

Mortgage lenders generally don't accept them - so you'd probably have to find an investor with a big lump of cash. As you probably know, unmortgageable properties sell for much less than mortgageable ones.

And any investors would guess that it's a distressed sale, so they would try to screw you into the ground on price.