HELP - Miller Pulling Incentives

Confused_Chris

Hi Guys

I'm really hoping an expert can shed some light on this for me as its very worrying.

My wife and I placed an offer and reserved a plot at a Miller Homes site in mid November. We are part of a chain who are all proceed-able consisting of:

First time buyer > Our buyer > Miller Homes

The house has lots of incentives including a gifted deposit which brings it into our budget.

The issue is that the purchase of our house has been delayed and will not complete in December as agreed, and is now looking to complete on the 12th Jan.

Miller have sent a letter to advise they are withdrawing the incentives, putting the house back on general sale and keeping the reservation money for their fees.

Is their anything we can do? Do we have a leg to stand on? What approach should we take?

Any help would be greatly appreciated.

Thanks
Confused_Chris

Lunchbox

Sounds strange. Who is withdrawing? Are they pulling out of the sale, or are you due to the change of date and incentives? What does the reservation document that you signed say about the reservation fee and the incentives?

Confused_Chris

Hi Lunchbox

Thank you for replying.

So Millers are the ones withdrawing.

So Our buyer has set the completion date of the 12th Jan and has informed our solicitors that it will complete on that date.

However we agreed with Miller Homes that we would complete much sooner. The date was initially the beginning of December which was delayed to the 22nd December as our buyers buyer was delayed.

When our buyer was advised of this new date (22nd Dec) he advised that he couldn't do it and it was set at the 12th Jan (which has been confirmed in writing)

That is when we informed Miller Homes who told us if it couldn't complete on the 22nd December, they would be withdrawing all incentives and re marketing the property as of Jan.

The document we signed effectively tells us we have reserved the property for 28 days (I dont have it to hand but I can check after work if this helps)

Thanks

eddddy

Confused_Chris wrote: »

The issue is that the purchase of our house has been delayed and will not complete in December as agreed, and is now looking to complete on the 12th Jan.

Miller have sent a letter to advise they are withdrawing the incentives, putting the house back on general sale and keeping the reservation money for their fees.

Do you really mean 'complete' - as in hand over the money, get the keys and move in?

Based on this...

Confused_Chris wrote: »

The document we signed effectively tells us we have reserved the property for 28 days

... I suspect you mean you want to exchange contracts on 12th Jan.

You probably need to clarify this, in order to get helpful advice.

Lunchbox

Ok, so you’ve fallen foul of the 28 Day exchange rule. I’m not sure there’s anything you can do I’m afraid The 28 day exchange period is pretty standard for new builds, but most developers are a bit flexible as long as you’re making good progress with the purchase.

The property may now have gone up in value, they think they can sell it without incentives, or they’ve had enough of the repeated delay in completion dates, so they’re within their rights to withdraw from the sale and keep your fee as you haven’t exchanged within the 28 day period.

(Given that the OP says the completion was originally anticipated for beginning of December I’m assuming they reserved a lot more than 28 days ago).

Confused_Chris

Thanks edddy

So the date of the 12th Jan is where we would be looking to Complete.
Our buyer is looking to Exchange as soon as possible

The signed document was agreement to exchange within 28 days

Hope this clears it up a bit. I'll be honest, I'm so new to this that I am struggling to get my head around things, so I apologise in advance if I miss anything.

Thanks

kingstreet

Did you reserve the property on the basis you would complete the purchase before 31/12/2017?

If you did, the package is based on you completing before the year-end which you are unable to do due to your buyer's insistence on a January completion.

Confused_Chris

@Lunchbox

Yeah that's pretty much it, we are outside the 28 days and they have said, the reason they offered incentives was to sell the house in time to hit the half year figures.

Doesn't look good but thanks for your help!

Confused_Chris

@Kingstreet

Yes, we agreed to complete on the 22nd December and it isnt possible for our buyer until 12th Jan.

Thanks

kingstreet

Confused_Chris wrote: »

@Kingstreet

Yes, we agreed to complete on the 22nd December and it isnt possible for our buyer until 12th Jan.

Thanks

Their financial year ends on 31 December, so a few bonuses were probably affected by your inability to complete.

Now the urgency is over, they are going to re-market and try to achieve a higher price and more profitable sale.

PersianCatLady

Confused_Chris wrote: »

Thanks edddy

So the date of the 12th Jan is where we would be looking to Complete.
Our buyer is looking to Exchange as soon as possible

The signed document was agreement to exchange within 28 days

Hope this clears it up a bit. I'll be honest, I'm so new to this that I am struggling to get my head around things, so I apologise in advance if I miss anything.

Thanks

I think it is as simple as you didn't meet the 28 day deadline.

My experience of buying a Miller Home was that if we hadn't have pushed and pushed them for a move in date then we would never have moved in because they never would have finished the house.

(Slight exaggeration there but when you have given notice on your rental home, it is a bit difficult)