Reserved a new build but the property is still being advertised as for sale?

Higher

Hi all,

I reserved a new build plot/property and paid £500 to do so. The reservation expiry is stated as 30/12/19 yet I went by the property today and the for sale sign is back in the window.

When I first reserved the plot I went to see the property again a few days later and found that the for sale sign was still in the window, I let the developer know, they apologised and took it down, although they never put a sold sign in the window which I have seen them do for other properties that have been reserved.

The paperwork etc is in the process of being completed, the developer was pushing hard to exchange before 30/12/19 but this is now not going to happen as there simply isn't enough time and the Solicitors office pretty much closes down from 20/12/19 for Christmas. The solicitor has let the developer know we cannot exchange until January now.

The property was reserved on 25/11/19, my mortgage was accepted on 18/12/19 and the developer expected us to exchange by 30/12/19 despite Christmas.

Now it seems since they have had the news that we won't exchange until January they have put the for sale sign back up. Despite the property being reserved until 30/12/19.

Are they legally allowed to do this? Where do I stand? I've attempted to get everything done as quickly as possibly, it is a specialist lender due to bad credit so they took a while to issue the mortgage offer but still, I only reserved the property on 25/11/19 and was very close to getting everything completed but it's not going to be completed to due to Christmas.

Are they allowed to advertise the property like this and possibly find a buyer to replace me despite my reservation still being valid?

Any advice would be greatly appreciated.

katkatmachine

Maybe the one that you’re buying is a show room? And they’re selling the same design but in another plot? I think it’s already reserved to you regardless if they put up a for sale sign or not.

k3lvc

Given you're clearly not going to exchange/complete by 30/12 and therefore aren't upholding your end of the agreement then they're at liberty to try sell. Clearly they're unlikely to get someone to exchange/complete before then but if you want the house it's up to you to move things along

Even if things were moving as planned it makes no justifiable difference - the house is not committed to you until you've exchanged

Personally I'd be concentrating on progressing the sale rather than picking fights with the sellers

eddddy

Higher wrote: »

Are they legally allowed to do this?

Your reservation agreement should explain what each party can and can't do.

(But TBH, I doubt there's anything about removing a 'For Sale' sign in the agreement.)

But you can still ask them to remove the sign.

Are there other properties like the one you want that are still for sale? If so, it would be daft for the developer to try to sell your property to somebody else. They're more likely to push other similar properties.

But if yours is the last property of its type, they might be starting to worry about your proceedability.

Higher

katkatmachine wrote: »

Maybe the one that you’re buying is a show room? And they’re selling the same design but in another plot? I think it’s already reserved to you regardless if they put up a for sale sign or not.

Thanks for the reply. No the one I'm buying isn't a show room. It is the only one left of it's kind in the development and it the one I'll be moving in to. There's no reason for them to have a for sale sign up other than trying to find another buyer which surely they shouldn't be able to do while its reserved to me.

They are probably wanting to advertise it as they know my reservation expires on 30/12/19 and despite everything being done other than exchanging contracts they will happily sell to somebody else it seems.

Higher

eddddy wrote: »

Your reservation agreement should explain what each party can and can't do.

(But TBH, I doubt there's anything about removing a 'For Sale' sign in the agreement.)

But you can still ask them to remove the sign.

Are there other properties like the one you want that are still for sale? If so, it would be daft for the developer to try to sell your property to somebody else. They're more likely to push other similar properties.

But if yours is the last property of its type, they might be starting to worry about your proceedability.

It is the last one of it's type and yes they may be concerned about my ability to proceed. But I thought maybe legally they shouldn't be able to advertise the property as for sale until my reservation expires.

AdrianC

Higher wrote: »

But I thought maybe legally they shouldn't be able to advertise the property as for sale until my reservation expires.

They can advertise, absolutely. But they're just contractually tied to proceeding with your sale for another week and a snidge. Most of which nobody will be working.

If you're concerned, get a friend to ring up and enquire.

katkatmachine

May i know who’s your developer? I’m also buying a new build house. Developer is Bellway, we were suppoused to exchange last Friday but got delayed. My solicitor said not to worry about it since it’s their fault why everything got delayed. In your case, you have a paper/evidence that the property is reserved to you so that’s proof enough it’s yours. Do you know if your solictor updates the developer about your progress in processing the papers regarding the sale?

Higher

k3lvc wrote: »

Given you're clearly not going to exchange/complete by 30/12 and therefore aren't upholding your end of the agreement then they're at liberty to try sell. Clearly they're unlikely to get someone to exchange/complete before then but if you want the house it's up to you to move things along

Even if things were moving as planned it makes no justifiable difference - the house is not committed to you until you've exchanged

Personally I'd be concentrating on progressing the sale rather than picking fights with the sellers

I'm not upholding my end of the agreement due to delays from the lender and Christmas etc rather than me causing a delay. Is it typical for a developer to give 1 month to complete? They seem in a rush to get it done by the end of the December.

I agree, I am focused on progressing the sale, I just didn't think the seller would be able to advertise the property as for sale during my reservation. That's the whole point of reserving the property is it not, so it's taken off the market while the paperwork and legalities are completed.

k3lvc

Higher wrote: »

I'm not upholding my end of the agreement due to delays from the lender and Christmas etc rather than me causing a delay. Is it typical for a developer to give 1 month to complete? They seem in a rush to get it done by the end of the December.

None of which is any concern of theirs - there was a date in the agreement and it's up to you to make sure your part of it is met

Higher wrote: »

I agree, I am focused on progressing the sale, I just didn't think the seller would be able to advertise the property as for sale during my reservation. That's the whole point of reserving the property is it not, so it's taken off the market while the paperwork and legalities are completed.

The only risk of them advertising it is that someone comes along with a cash offer and can exchange sooner after 30/12 than you can - all the more reason for you to progress quickly

TBH irrespective of For Sale sign if someone walks in through the door of sales office and is proceedable then they're likely to get it assuming they can exchange before you

jackomdj

Some property developers year ends are the end of Dec, we had friends who got a great deal so long as they completed before 31/12.

I would start pushing your lender and solicitor as soon as they are open again. I know you said it is your mortgage co and solicitors fault, in the eyes of the builder they are part of your team, so technically still your fault.