Exchange of Contracts - New Build

reeceg353

Hi All,

I recently had an offer accepted on a new build, currently going through the mortgage application (have an AIP etc).

I just wondered how lenient Developers are with exchange dates and the payment of deposits? The developer said that from Reservation fee payment to exchange is 28 days.

My solicitor says that 28 days is quite a short amount of time to get all the paperwork done and completed, for a new build & HTB especially. He said that it might take between a week or two more than 28 days, he can't say for certain. Obviously the paperwork and mortgage could be finished before then too.

I will call the developer up after work for certain but just wanted to ask the forum prior to that to ease my mind.

Would I need to pay another reservation fee do you think or if I show that progress is being made, they will be fine to wait another week?

R

Alter_ego

Let your solicitor handle it, that's what you're paying for.

lisyloo

It really does depend.
If it's then end of their financial year they might be desperate to stick to the date, but then again they might not.

ThePants999

Usually, as long as they can see that you're making forwards progress and not the cause of a hold-up, they're flexible.

rijack

Double check with the team as well, as we were told 28 days but then when they put the date on paper you actually get about 2 weeks extra.

Ours gave us a week to appoint a solicitor and another week to get a mortgage application in before the 28 day clock started..

reeceg353

OK, I'll read the small print again prior to me calling them.

I can't see any major reason for them to re-market the property if its just a week later. This is all just hypothetical at the moment because there isn't actually any delay right now, just thinking ahead if the mortgage/HTB paperwork does take a little longer than a month.

rijack

It's good to plan.
I know on ours it says if we dont exchange by the set day we risk losing the incentives, but their team said if we just keep in regular communication they dont think there will be any issue.

whatdoyouthink...

My developers also said 28 days...4 months later we exchanged contracts with no issues.

Paul91

My developer has stated 6 weeks. But I’ve spoken to a few people on the same development who have said they went well over. As I’m selling a house and buying 6 weeks is a little optimistic. The sales rep pretty much said as long as we can see you’re progressing it you’ll be fine.
Wouldn’t make sense for us to get say 8 weeks in with searches and what not already on going, just to tell us we can’t have the house anymore, as they’d have to readvertise the property and then wait for another buyer.

Mcgough221

We’re coming up to 3 months and still not exchanged. As long as your moving forwards and going as fast as you can not much they can do. If they sell it to someone else they start back at square one.

Plus if it’s like us, can’t do anything until the solicitor is ready and willing.

MrSaver96

We reserved ours on the 8th Jan. Told strict 28 days for exchange.. 3 weeks later and we’ve only just instructed solicitors. They’re fine with it all and had no issues.