Buying a house that is being used as part exchange.

Kerryval85

Hi I'm new to this forum and if anyone has had any experience in relation to my question I would be very grateful to hear from you. My parents put their house up for sale last Saturday and on the same day viewed a house they are interested in buying. Tuesday they accepted an offer on their house and put an offer on the house they viewed on Saturday which was also accepted.
The current owners of the house they are intending to purchase are buying a new build and using their house as a part exchange. This evening my mum received an email to say that the developers require her to exchange contracts within 28 days of receiving the draft contracts.
Once my parents house is sold they will be cash buyers and a first time buyer is buying their house so things should move fairly quickly but there is no way they will be ready to exchange within 28 days. My parents buyer will require a survey and searches to be done and of course my parents will require the same on their purchase.
They were also told that they can't be given a completion date but it will be between April and June. This isn't an issue because if my parents sale goes through before their purchase is ready to complete they can come to live with me and my Husband.
My question I suppose, is how likely is it that the developers will insist on this 28 day exchange when it just doesn't seem a reasonable amount of time. My parents will not be able to pay a deposit before there house has sold and the developers are aware that they had a property to sell.
I apologise for such a long post but I am really hoping someone will be able to help as it is now the weekend they won't be able to get any answers until at least Monday from the solicitor/developer. TIA

alumende27

Shouldn't be an issue as long as the developers see progress on the sale.

Note that they are saying they want contracts to be exchanged within 28 days of receiving draft contracts. That in itself can take a few weeks to get the draft contracts ready.

Kerryval85

Thank you for your reply.

Flugelhorn

There are occasions when people say "28 day exchange" but I think the usual thing is "we'll exchange when everyone is ready" .. I suppose that the developers could put it back on the market if there is no exchange in 28 days but that seems a pretty unlikely thing to do - they wold look at the current chain, see that things are happening and wait a bit

marilynhayat

Im in process of buying a home that is owned by a developer who took it in part exchange for a new build. after my solicitor did searches the developers cannot answer all the questions as they didnt occupy. my solicito says i shouldnt purchase as there is too much risk. anything i can do to get this sale closed?

davidmcn

marilynhayat wrote: »

my solicito says i shouldnt purchase as there is too much risk. anything i can do to get this sale closed?

Ignore your solicitor and take a risk on the stuff which isn't answered (perhaps after making your own enquiries). Is there anything in particular you (or your solicitor) is concerned about? It's a pretty normal approach when it's a part-exchange (or relocation, or repossession).

marilynhayat

thanjs for your reply
the list of questions is extensive 47 to be exact
im not in the UK i work abroad
i dont have the level of access to even check the subject range from title to search to protocols and more
i just thought this cant be the first time this happens and hoped there was a way between both solicitors to get it done
but developers not willing to try harder
i really am at a loss
its taken months and mobey to get this far

davidmcn

marilynhayat wrote: »

thanjs for your reply
the list of questions is extensive 47 to be exact
im not in the UK i work abroad
i dont have the level of access to even check the subject range from title to search to protocols and more
i just thought this cant be the first time this happens and hoped there was a way between both solicitors to get it done
but developers not willing to try harder
i really am at a loss
its taken months and mobey to get this far

Then go through the questions with your solicitor and figure out which ones are actually important (or give us some examples). Obviously the part-exchange company can't give useful answers to questions like "have there been any disputes with the neighbours", because they've never lived there.

The important stuff in the due diligence doesn't rely on answers from the vendor (as you don't really want to trust their answers anyway) - so the title, searches, and the results of your survey should all be things your solicitor can comment on without further input from the seller.