Completion date set for 31/3/20 - what happens now.

Jimmycello

Afternoon all,
I hope youre all keeping safe during these worrying times.
We are due to complete 31/3 on a new build. i had a call off the developer 30 minutes or so ago stating they are now closing the sales office/show home and will only be available by phone - fine and understandable. 
When i asked if this meant completion would still happen on the agreed date she seemed unsure and mentioned her colleague was currently on site and would hopefully have more information later.
My question(s) is this:

- If persimmon do not meet the agreed date they will be in breach of contract, what does this mean for me? What could I technically claim back from them if anything?
- Will i be able to claim back all costs from Persimmon?

I appreciate these are very unusual times and any response/help would be great!

davidmcn

When you say "agreed date", are you sure they are contractually required to complete on that date? Have you checked with your solicitor in case you've misinterpreted the contract? Was this a fixed date in the contract or did you exchange while they were still building and were to give you notice of when the house would be ready?

Jimmycello

davidmcn said:

When you say "agreed date", are you sure they are contractually required to complete on that date? Have you checked with your solicitor in case you've misinterpreted the contract? Was this a fixed date in the contract or did you exchange while they were still building and were to give you notice of when the house would be ready?

I was under the impression, yes, but its a good questions. I spoke to the solicitor on Monday and she said we would complete "unless the banks collapse" - im just slightly concerned by Persimmon's stance. 
Heres a snippet from the latest email from the solicitor:

I tried to contact you this afternoon to advice that Persimmon Legal have served with notice to complete for 31st March 2020.

We will continue to set your file up for completion for this date and will soon send you a completion statement and bill of costs for your kind attention.

If you have any queries please do not hesitate to contact me.

Have a lovely week.

 

pinkteapot

This means you exchanged contracts with an open-ended completion (not a fixed date), and Persimmon have now issued the Notice to Complete, which normally lets them set a completion date with 10 days' notice. 

You need to tell your solicitor that Persimmon seem unsure whether they can complete. Ask your solicitor what happens if Persimmon fail to complete. With a normal exchange of contracts, you could claim costs from them if they subsequently fail to complete. I'm not sure if a Notice to Complete gives you the same legal protections as exchange of contracts... 

Once you tell your solicitor, they're likely to get onto Persimmon's solicitors pretty sharpish and put a rocket up them!

pinkteapot

Just found this which should give you some info before you speak to your solicitor

https://www.samconveyancing.co.uk/news/conveyancing/new-build-completion-on-notice-8642#sign

"What if the developer itself doesn't finish your property by the end of the 10-day Completion on Notice period?
This is more of a hypothetical illustration - it's not likely to happen! - however you would then yourself be able to serve a Notice to Complete on your developer as above (interest charged daily) and also rescind contracts after 10 days have elapsed without finishing the building.

You can also sue the developer for various damages and out-of-pocket expenses where these can be clearly proven, and these are also discussed in the article above, however you should note that the law doesn't favour you as a buyer - the developer, as the seller, or indeed any property seller, gets betterment, i.e. they can automatically claim 10% of the purchase price from you without having to prove any further point."

(It's not very well written - don't panic about that last point. That refers to the fact the builder can claim 10% from you if YOU fail to complete, but you don't have the same right in reverse.)

Jimmycello

pinkteapot said:

Just found this which should give you some info before you speak to your solicitor


"What if the developer itself doesn't finish your property by the end of the 10-day Completion on Notice period?
This is more of a hypothetical illustration - it's not likely to happen! - however you would then yourself be able to serve a Notice to Complete on your developer as above (interest charged daily) and also rescind contracts after 10 days have elapsed without finishing the building.

You can also sue the developer for various damages and out-of-pocket expenses where these can be clearly proven, and these are also discussed in the article above, however you should note that the law doesn't favour you as a buyer - the developer, as the seller, or indeed any property seller, gets betterment, i.e. they can automatically claim 10% of the purchase price from you without having to prove any further point."

(It's not very well written - don't panic about that last point. That refers to the fact the builder can claim 10% from you if YOU fail to complete, but you don't have the same right in reverse.)

Thanks so much for your reply, i really appreciate you taking the time to assist. 
I spoke to my solicitor an hour ago and pushed similar point, she said she will come back to me.
Wait and see for now I suppose!