First time buyer advice needed please.

Mike17

Hi all just wondering if you can help a first time buyer out here.

I’ve currently reserved a new Taylor Wimpey property. I’ve paid the reservation fee and paid the search fees for a mortgage too, all of which has been approved as well as the help to buy being approved too. I’ve also selected my options, but not paid anything towards these yet. They said if I exchange contracts in the next week I can pay them on completion.

Due to some things in the TP1 as well as other reasons I’m debating if to pull out of the sale. My question is at this point what will I lose in money terms? Is it just the reservation and search fees? I could live with this I’m just unsure if the developer will try to make me pay for the options as well as they are quite a lot. I want to buy the house for the right reason and I’m feeling a bit trapped not knowing the above at the minute.

I’d rather not ask the developer these questions in case they say yes that’s the case and push you more towards the sale of the house.

Your advice will be greatly appreciated.

Mike.

hazyjo

What does your contract say?


Are you sure it's not just FTB nerves?

Mike17

It not nerves I have concerns about a number of things regarding the house and land where it is. I reserved the property around 5 weeks ago.

I spoke to the sales office this week and went through the options before finding this information out.

At the minute I've not paid my deposit only my "Reservation fee, search fees and a fee to my solicitor" all in total of about £800.00

My solicitor said I may need to pay them a fee if I pull out, this is for the paper work they have done. I have already paid them £150.00 to start the process off.. Is this correct?

The options are made up of a £5,000.00 incentive but the total is £6,00.00 the other other £1,000.00 paid by myself. I'm worried if I pull out reading the T&C's as listed below they will try and make me pay for all the options.

T&C's attached to options list ;

1. The placing an order for options by you forms a separate contract, this is independent of the purchase of the dwelling.

2. In the event you notify us or out conveyancer that you do not wish to proceed with the purchase of the dwelling you have reserved or act in a manner which in our opinion is inconsistent with taking all the steps necessary in a timely manner to purchase the dwelling and the dwelling is re marketed then we may treat this contract for the purchase as being terminated by you.

Advice would be greatly appreciated. I don't want to have to pay all of the options and lose my reservation fee and search fee's too.

Mike

Mike17

Hi,

Anyone able to advise on the above?

Thanks.

RedFraggle

How far on is the build? Have any of your options changed anything yet?
If the options are on a separate contract what does that say?

Smodlet

Does the contract for the options state any cooling off period and, if so, has that expired?

Mike17

It's just above the foundation level hence me selecting some options. In the contract for the options It only seems to say the below ;

1. The placing an order for options by you forms a separate contract, this is independent of the purchase of the dwelling.

2. In the event you notify us or out conveyancer that you do not wish to proceed with the purchase of the dwelling you have reserved or act in a manner which in our opinion is inconsistent with taking all the steps necessary in a timely manner to purchase the dwelling and the dwelling is re marketed then we may treat this contract for the purchase as being terminated by you.

I haven't exchanged contracts so am I right in thinking I may just lose my reservation fee if I pull out as well as mortgage search fees? As far as I'm aware as I haven't exchanged contracts I'm not yet under any legal obligation to buy the house am I?

Would I just need to tell my solicitor that I don't plan to go ahead with the sale and they will let the developer know? The developer is Taylor Wimpey.

Thanks

Smodlet

You really need legal advice on this but I think the key phrase is "separate contract" for the options. If you have not exchanged then you are under no obligation whatsoever to buy the house but may (again, take advice from someone properly trained to give it) still be liable for the options, from what I have read on other threads. I believe it is possible to end up paying for someone else's fancy tiles/floors/whatever.

I would assume worst case scenario and go from there to mitigate my losses, beginning by telling the developer I wish to pull out myself unless I were to receive written confirmation the solicitor had already informed them within a very few days.

Good luck with it all.

Mike17

Quick update :

Today I let the developer know I won't be proceeding with the sale. I was told I'd get my reservation fee back, we will see if this happens. They said I had to do what was best for myself given my situation and was very understanding.

My thoughts this evening is will the solicitor be as understanding when I tell them I'm pulling out of the sale tomorrow? Will they charge me for work currently done? If so any idea how much? I'm expecting to lose my search fee's which I've paid so far which I can accept.

Any advice is again much appreciated and thanks for everything so far.

Smodlet

How can anyone else know what your solicitor charges? Suggest you ask them. It is usual for them to charge for work already done. You would not expect a builder who had done part of the work on an extension not to require payment even if you decided not to complete the work, would you?

DCFC79

Whatwas wrong with the house and where it is ?