Land registry/BDW trading

ChrisStaples

Hello All,

We are going through a house purchase - the house we are moving into is part of a part exchange as the current owners have bought a David Wilson/BDW trading new build. Problem is that BDW want to complete for their financial year end (28th June), but the house is not in BDW's name yet with the land registry so technically they are not legally able to sell - they want the current owners to move out on 27th June and for completion from both parties to take place on 28th June! Their solicitors take 3 weeks to reply to anything and are little help when they do reply so it is a nightmare just trying to find out anything. Our solicitors say it will take 10-12 weeks from the 28th June, when they want it completed the same day or the house will go back on the market.

What are your thoughts on this - ever encountered this practice before?

Cheers,

A worried househunter

eddddy

ChrisStaples wrote: »

when they want it completed the same day or the house will go back on the market.

That's very likely to be a bluff.

If they put it back on the market, they're not going to find a buyer and complete by 28th June - so it's pointless for them to put it back on the market for that reason.

The "10-12 weeks" comment from your solicitor just sounds like the standard timescale that they quote to anyone and everyone that asks them.


In your position, I would just say to the developer something like "I've instructed my solicitor to proceed with the purchase as quickly as possible. I'm happy for it to complete by 28th June, if the solicitors can achieve that."

(Which really means "I'm 99% sure that the solicitors can't achieve that date, but it's fine with me if they can.")

da_rule

There’s nothing wrong with back to back transfers, in theory. Essentially there would be two transfer deeds, one transferring ownership from current owner to BDW and one transferring ownership from BDW to you. Standard practice would then be for you (as the end of the chain) to register the whole thing (doesn’t cost any extra from a fees point of view).

However problems can arise when there are last minute amendments to the first transfer or when indemnities may be required by the second buyer but not the first (i.e. if you are buying with a mortgage then your lender may require an indemnity for something whereas BDW, who will be a cash buyer, may not).

ChrisStaples

Thanks da rule - my solicitor has never raised the possibility that I can register everything at the end of the process and simply is repeatedly stating that before a completion date can be discussed things must be done stepwise over the course of weeks with the registry, though I presume there is nothing illegal about the process you describe. However, I can just hear my solicitor now saying that she will want to be in sight of the physical documents before she can proceed, which will mean their couriering from Nottingham to North Wales on the same day for completion to take place in time for the 28th June deadline. I neglected to mention that we got a good deal and that this is conditional on completion before their financial year-end.

da_rule

That is where things can get complicated, in that you would want a contractual clause whereby not only is the transfer deed between you and BDW in an agreed form, but so is the earlier transfer. That way, the deeds are all agreed and there can’t be any variation (without all parties agreeing).

I’ve done back to backs on a few occasions but it’s generally commercial property and is a bit of a headache, especially if you’re at the end of the chain as the buck somewhat stop with you.

ChrisStaples

Yes, I am hoping that this email from my solicitor is their stock response to uncertainty (they sent it on Friday then went home unfortunately). I assume it is doable given that BDW are attempting the strategy, it can't be the first time they have done it. Would be helpful if sellers solicitors responded promptly, they have an average response time of 3 weeks it seems.

ChrisStaples

I am bewildered at this point - my solicitor talked to someone from MoveWithUs who are mediating on behalf of BDW and later in the day (before the email I got from my solicitor), I had a call from MoveWithUs about whether my solicitor was OK with things proceeding, Were they just having a nice chat about the weather?