Pulled out before exchange - invoiced for costs!!

smem18

I think you received some really harsh replies at the start of this thread.

I really think it is the developers fault if they install bespoke options (whether standard/free options or optional extras) before you have exchanged. That is a risk they took before you became legally obliged to purchase the property. I really don't think they have a leg to stand on, particularly because they did not ask you to sign anything stating you accepted liability for the costs should you pull out before exchange.

I'm not an expert, but I think the only possible way they could reclaim the cost in court would be to prove they have suffered a financial loss as a result of your actions. So they would have to prove that other potential buyers have refused the property because of the options you chose or that they had to change all/some of the options. But even then, I really can't see them being able to charge you because of my previous point about them taking a risk on installing these extras.

I agree that it would be interesting to send a friend in as a "mole" to express interest in that property and just see what they say about it!

But my opinion is definitely don't pay! If it goes to court, fine. At least you know an impartial judge has then made the call regarding who is right/wrong.

jtm8866

hammy1988 wrote: »

Are you with Linden Homes? We were definitely told that if we paid for extras, then charges would occur if we pulled out and they had been installed. We also were shown the Architect plans a week or so after putting down our £500 reservation fee.

Maybe we were lucky and had a sales rep who made it clear, and I scrutinised all my paperwork, you really should have clarified if you were unsure.

Sounds like you really did pull out last minute, one of the benefits of having a new build is that you can choose your styles and fixtures and fittings. The developer only has the choice now of selling the house you were interested in with everything you chose at a reduced price for a potential buyer, or rip it all out and start over.

Both ways they have lost money.

*readding something I just remembered. You only were given leaveway on the fees incurred if your help to buy or mortgage fell through.

The point is that I wasn't asked to pay for extras until after contract exchange. I asked this question specifically and the answer from estate agent was that I can include in the house price (which means I have to amend mortgage which was not an option for me) or pay on or after contract exchange. Obviously I did not know or plan for pulling out at that stage, so assumed no more questions on this matter necessary.

Moreover, their invoice also cover the cost for standard/free items as well just because I chose one particular colour for that item (kitchen worktop).

jtm8866

smem18 wrote: »

I think you received some really harsh replies at the start of this thread.

I really think it is the developers fault if they install bespoke options (whether standard/free options or optional extras) before you have exchanged. That is a risk they took before you became legally obliged to purchase the property. I really don't think they have a leg to stand on, particularly because they did not ask you to sign anything stating you accepted liability for the costs should you pull out before exchange.

I'm not an expert, but I think the only possible way they could reclaim the cost in court would be to prove they have suffered a financial loss as a result of your actions. So they would have to prove that other potential buyers have refused the property because of the options you chose or that they had to change all/some of the options. But even then, I really can't see them being able to charge you because of my previous point about them taking a risk on installing these extras.

I agree that it would be interesting to send a friend in as a "mole" to express interest in that property and just see what they say about it!

But my opinion is definitely don't pay! If it goes to court, fine. At least you know an impartial judge has then made the call regarding who is right/wrong.

Thanks.
That's the plan. Happy to face this in small claims court, if it gets there.

jtm8866

hammy1988 wrote: »

*readding something I just remembered. You only were given leaveway on the fees incurred if your help to buy or mortgage fell through.

I am Help to buy applicant, so what does this mean?

Nicola83

I'm no expert but I'd agree with the majority on here that you don't owe them anything. The speel they're spinning you about having to rip it all out for a different buyer is rubbish.
We're in the process of buying a new build, we're due to exchange in the next few days and we only got to pick our flooring. Our tiles and kitchen worktop/cupboards had already been picked by their interior designer. There's 2 plots either side of us that haven't been sold yet and they are due for completion the same time as ours. They are fully tiled with a fully fitted kitchen. I don't know how high in demand the development is where you were planning to buy, but I'm pretty sure they'll be able to sell it with the fixtures and fittings you picked. If anything, they could put the price up for the new buyers because of the additional fittings.
Stick to your instincts and do nothing.

steampowered

hammy1988 wrote: »

Are you with Linden Homes? We were definitely told that if we paid for extras, then charges would occur if we pulled out and they had been installed.

Fair enough, but if Linden Homes want to be able to charge for things, then that should be explained in the contract the Op would have been asked to sign. I don't think they can validly charge for things if that is not agreed in the contract.

gettingtheresometime

jtm8866 wrote: »

At this point I received feedback from both estate agent and the developer that they both were surprised about the driveway positioning. They were not aware of this change as well.

So effectively I, my wife, the estate agent and the developer were all under the impression that the driveway is being built in the front of the house as originally planned. As I heard from the estate agent, the architect choose to change this plan without advising anybody. This is the email extract from the estate agent: "Evidently the architect changed the plan slightly recently and nobody was informed."

.

This is complete BS.

Working in a consulting engineers I know that architects won’t change layouts willy nilly as this has major implications for others in the design team.

What I don’t understand though is if you were unsure as to whether you wanted to proceed, why resend the extra list when asked. Why not simply say that you need to think whether the purchase was going to proceed or not?

jtm8866

gettingtheresometime wrote: »

This is complete BS.

What I don’t understand though is if you were unsure as to whether you wanted to proceed, why resend the extra list when asked. Why not simply say that you need to think whether the purchase was going to proceed or not?

Firstly, I thought they never received it in the first place, so I resent it as an admin task.

Secondly, we didn't make the decision of pulling out at that time since I haven't consulted with my wife and haven't visited the site together yet. She just came back from her vacation and only after later that week when we visited the site together, we realised how much the side garden has been cut short because of the driveway. It disappointed her more that it did me. The decision was then made with heavy heart of knowing that we are going to lose £1.5k which we have already paid as legal and other fees at that time.

So effectively, when I resent the extra list I was not convinced that we were going to pull out. It was a big hard decision which took a while and mostly a firm rejection from my wife.

Megadebtor

Actually they can and they do. Depends on the size of the development obviously to weigh up any 'repercussions ' but it's quite common for architects/developers to submit non material, minor material or material amendments.

Mahsroh

gettingtheresometime wrote: »

Working in a consulting engineers I know that architects won’t change layouts willy nilly

This actually made me laugh out loud! I work for a contractor - can you pass on the details of these architects of which you speak!? They sound amazing, and totally unlike most architects I've ever worked with!