deposit and contract exchange

JESSICA_KARINA

Hi Surrey_EA and chappers,

Thank you very much for your advice. Yes, we are seriously thinking to walk away, there are many things accumulating.

davidmcn

Surrey_EA wrote: »

A long stop completion date is the latest possible date completion can take place. Typically a developer rarely agrees to a long stop date without being extremely confident their product will be completed well in advance of that date, as they would be in breach of contract if the completion date arrives and the brand new property has not been finished..

It's not normally expressed as the developer being in breach of contract, merely that the buyer is entitled to walk away after the long stop date arrives ie the developer isn't penalised, they just lose the sale.

chappers

Surrey_EA wrote: »

A long stop completion date is the latest possible date completion can take place. Typically a developer rarely agrees to a long stop date without being extremely confident their product will be completed well in advance of that date, as they would be in breach of contract if the completion date arrives and the brand new property has not been finished.

If you exchange contracts with a long stop date, and then the other party gets fed up, they can't simply pull out if they feel like it, not without significant financial penalties.

Hi I understand the theory, but the practice is another matter.
I know of at least two people who pulled out of deals after the long stop date was missed, back in the 80's my Dad pulled out of a deal after the longstop date was exceeded twice, we ended up buying a house on the same development that was one of the first to be built and came onto the market, the house he was going to buy new, was not completed for another 6 months after the date it was meant to be finished.
I don't know how anyone can go through the stress of buying a house off plan or getting into a chain with someone who is.
Be interested to know if there are any stats. regarding the percentage of new build/off plan deals that complete on target.

JESSICA_KARINA

Thank you everyone for your comments. That help me a lot. Now, I can feel that I'm not crazy to be disappointed with all this process.
Now, our solicitor has answered my email saying that the house is build. That confuse us more. This was after I chase them to answer and confirm by email.
All of this is so strange because before that, when I spoke by phone with her, she said that the house is not build.
We don't understand why they change their version many times.
If the house is build, why they are asking for an long stop day in June 2018?
If the house is build, I think it is ok to ask for a completion day.

If someone is thinking to buy a house in this situation, be carful!!!

I would like to give company's names to alert everybody, but I don't know if can have legal problem for that.

Doozergirl

There's no need to give us the company name.

This is completely usual behaviour from them. No one is moving until their house is built and signed off. The options that any potential buyers have are:
a) to like it
b) to lump it

JESSICA_KARINA

Hi Doozergirl,
Did you read my previous comments?
Is it normal that the new house build company say something and them our solicitor other?
And then they ask to pay deposit and exchange contract to long stop day in june 2018 all the same day, like they need money desperately?
We are buying a old house!!!!

hazyjo

They will all stretch the truth to suit themselves. Take everything with a pinch of salt and trust your own research!


I'm buying and am being lied to by everyone other than the person I'm buying from. The EA has told her we'll all be completing the week beginning 23 October - but nobody has said anything to me! We're nowhere near ready due to our useless buyers holding things up!


You need to realise you hold all the cards. If you pull out, your vendor will risk losing the new build - and it sounds like they have exchanged which will cause them loads of grief! They NEED a buyer. If you pull out, they may well decide to go into rented or stay elsewhere. In fact, they may not have much of a choice!


Jx

Surrey_EA

hazyjo wrote: »

You need to realise you hold all the cards. If you pull out, your vendor will risk losing the new build - and it sounds like they have exchanged which will cause them loads of grief! They NEED a buyer. If you pull out, they may well decide to go into rented or stay elsewhere. In fact, they may not have much of a choice!


Jx

The developers have taken the property the op is hoping to buy in part exchange, so the vendor are the developers building the brand new property, and the current occupants are the people wishing to move to the brand new property.

JESSICA_KARINA

Well, now we find out that the vendors are the people living there, not the build company as they want us to think.
So, now they agree for a long stop day 30th Nov. I don't know if this means that if the new build is not ready, they will go to rent so we can move in. They are agree to write long stop day 30th Nov.

Thank you everyone for your time.