deposit and contract exchange

JESSICA_KARINA

Hello, we need advice because I feel that our solicitor is not helping us.
This is the situation:
We are buying a old house 1920s, our sellers are buying a new house from a building company and the house is not ready. A long time ago (in July) When they offered the house they said that the new build home will be ready between Oct. and Dec. 2017.

Last Friday the developer said that the house is ready and they needed the deposit and the exchange contract now!!!
It was a little strange because we will waiting to be notified.

Yesterday, I called one of our solicitor, he said that the house was not ready.

We are really confuse.

Our solicitors and the building company are chasing us to give the deposit and exchange contract but they can not give us a day to move, our solicitor said that it can be from December to June 2018, and this is long time and our mortgage is valid only until December 2017.

The developer company continue sending messages because they want us to send the deposit to our solicitors. I have sent an email to our solicitors for clarification but they haven't answer yet.


Is this normal?


Note: Our solicitor was recommended for the building company.

eddddy

When buying a new build house, it is usual to exchange contracts with no definite completion date - just a 'long stop date'.

The 'long stop date' is the latest possible date - I guess that's June 2018 here. If the house isn't finished by then, the buyer can get their deposit back and look for another house.

The builder gives the buyer 10 days notice when the house is ready. i.e. When the builder says "go", you have to move 10 days later.


It seems that your seller is passing on all these terms to you. So are you happy...

• To maybe wait until June 2018 to move?
• Not move at all if your seller's house isn't ready by June 2018?
• Move with 10 days notice?

And I would say that you should definitely not agree to exchange contracts, unless you have a mortgage offer that is valid until June 2018.

You wouldn't have these problems if your seller wasn't buying a new build house. So you could consider forgetting this house and finding another.

Or you could say that you won't accept these terms - you want a fixed completion date, and your seller has to go into rented accommodation, stay with family etc.

JESSICA_KARINA wrote: »

Note: Our solicitor was recommended for the building company.

That's probably a bad thing. They may be more worried about keeping the builder happy than looking after your best interests.

m0bov

Get the seller to move into rented. They are the ones buying new build so the delay should be for them to resolve. Unless you REALLY want this house, I'd walk, who is to say when its completed there are snagging issues? Suggest they rent and you do the usual Exchange with a 3-4 week completion.

JESSICA_KARINA

Hi Eddddy,

Thank you very much for your advice. It is very helpful. It is a shame because we really like the house. But our mortgage is valid only until December 2017 and we were very clear about that with our solicitors. I'm very disappointed. The solicitors has asked us to extend the deposit to June or April.
Also, we are renting and we need 1 month notice.

This is not all the problem. This house didn't have building regulations for the new bathroom and loft conversion. Our Lender, indicate that they wont let us the money if the house doesn't have all the regulations. So, our solicitor need to speak with our lender about this too.

Thank you for your advice.

Karina

JESSICA_KARINA

Hi m0bov,
Thank you for your advice.
I've spoken with our solicitor a few minutes ago and the problem is that the building company is selling the house and our solicitor has said that they wont be agree with a fix moving day. They want a long stop day.

Really, never buy a house of someone who is moving to a new build home!!!

Kind Regards,
Karina

mrschaucer

Your sellers appear to have signed up to a new house part exchange scheme. That is the worst of all possible worlds for you as YOU are now the ones taking on all the problems with the dates. Add that to the lack of paperwork on the house and you need to think how much you really want this particular house or whether it would be easier all round to walk away.

JESSICA_KARINA

Is this legal? is there a place where we can complaint about this?

m0bov

As above, ask for your seller to move into short term rented. They are causing the problem, they need to fix it. Speak to the EA, they should pass on your feelings. Consider walking away.

JESSICA_KARINA

The problem is that our sellers have signed up to a new house part exchange scheme. I'm not sure if we can ask them to move into short term rented. What is EA?

giraffe69

EA=estate agent

mrschaucer

Not sure of the legals, but when "sellers" do one of these part exchanges to move into a new build, it's the BUILDER who is actually selling their old house, so trying to get the "sellers" to move into rented accomm is a non starter. And EA is Estate Agent, by the way.
Think you need to sit down with the solicitor and get him to explain the situation very clearly. (Bear in mind he might just be wanting what's best for the builder rather than best for you.) Next time, choose your own totally independent solicitor.