New build reserved, now selling to others

AnotherJoe

Karenlouisee wrote: »

Any insight or advice appreciated.

We reserved a new build property, paid £500 fee, was told reserved for 12 weeks, but not to worry as “we are flexible even if you don’t sell it in the 12 weeks”. Only 4 weeks on we have had an offer on our house, put in our mortgage application, paid for valuation, developer called us today saying “sorry, someone has been to the MD and made an offer that’s been accepted, so you can no longer have the house”
Have reservation paperwork, only states date of reservation, no time length time of reservation etc. No t&c or disclaimers etc.
So, we will lose sale of our home, lose £250 valuation fee, £200 mortgage advisor fees, and more importantly our dream home.

Do we have a leg to stand on here?

Seems to me you have a clear case to get your expenses like those back.
Write a very short note to them saying that as they have reneged on your contract*, you want back not just your deposit (goes without saying but you shoudl say it) but also those expenses as well and if not forthcoming within 14 days you will begin small claims action.
And if they dont, then make that small claims action via MCOL.

* just because its not written down doesn't mean it isnt valid, they accepted your money and made a verbal contract which is backed up by the receipt.

mjs0510

It sounds like the house would almost be ready to move into so they will want it sold asap.

I'd find it strange that a builder would take a firm reservation from somebody that hadn't already sold. 12 weeks is a long time to give you to sell + another 12 weeks or so that it would most likely take for completion. Lots of buyers, even private would think twice if somebody in a proceedable position came along and made an offer against an unproceedable buyer.

Did you go back and let them know you had an offer?

I'm not sure theres a lot you can do re your fees as until exchange there is no legal obligation on either side.

hammy1988

Coming from someone who reserved a new build house when selling our own, it IS stressful as the developers do pile the pressure on. The sales rep from our development wouldn't leave my solicitor who was dealing with our house sale alone. We were told in no uncertain terms that we had to complete by a certain date, otherwise, they could pull out, and this was threatened often (I still have the grey hairs from it all).

Personally, I'm not sure why you were advised to even reserve a property when you hadn't even had an offer on your own house? The new build developers wouldn't touch us until we had had an offer on ours. Very strange.

AnotherJoe

mjs0510 wrote: »

I'm not sure theres a lot you can do re your fees as until exchange there is no legal obligation on either side.

Thats true in general but if you agreed a contract with someone (and to boot, sealed it by paying money) seems to me (IANAL) its a very different matter.

davidmcn

AnotherJoe wrote: »

Thats true in general but if you agreed a contract with someone (and to boot, sealed it by paying money) seems to me (IANAL) its a very different matter.

If it's as sketchy as the OP says, I'm not sure what the terms of the "contract" actually are.

mjs0510

AnotherJoe wrote: »

Thats true in general but if you agreed a contract with someone (and to boot, sealed it by paying money) seems to me (IANAL) its a very different matter.

I would be surprised if the reservation contract is as open as that - of course there is always a possibility that the builder has left themselves wide open.