Developer forcing us to complete

xthrash

Hi guys

The developer of our new build is trying to force us to complete next week, despite the current circumstances. In theory, it is possible as we are moving into a vacant house and have confirmed a removal company will do our move. However, there are some issues we identified and haven’t been resolved as no one is working on the site at the minute. The issues aren’t deemed major, they are only minor and would probably only take a few days to resolve in total but they’ve said they can’t resolve them and because we’ve now agreed a completion date, we can’t go back on it - even though we haven’t even exchanged yet. Technically our buyer shouldn’t be moving into our property either as it is not currently vacant but it seems their solicitor is willing to go ahead.

I was wondering if anyone could provide some advice please? I haven’t spoke to our solicitor yet but our contract does state we can’t delay completion for minor issues but obviously our concern is once we move in, these issues won’t get resolved. Also, it would be a lot easier to resolve them with no one living in the property.

Many thanks 

dimbo61

Now you will have to forgive me if the worldwide Covid 19 Pandemic turns out to be more than a Minor issue.
As a frontline worker for the NHS for the last 34 years we have Never seen anything like this deadly virus.
Do you want to move ?
Can your buyers move into your property ( or best to wait 2 weeks ) before they enter the house ! 
Will your solicitor allow you to exchange and complete this week ?
Talk to your solicitor

bucksbloke

You've bought a new build and I'm guessing you have exchanged contracts and are contractually committed to complete on the day stated (or after they've given you notice to complete). Unless you can get agreement from all of the people in the chain to vary the completion date, then legally you have to complete.

Your developer also does not have to fix every issue before you move in. You are still entitled to have them fixed. On my last new build they were still fixing issues - 18 months after we moved in. You do have to chase the builders, our builder uses an online tracking system so we can see when stuff is going to be completed etc.  The builder will be used to fixing issues around you, they do it on virtually every site. 

davidmcn

If you haven't exchanged then nobody can "force" anybody to do anything. Why not just wait? It doesn't seem likely that they'll sell to anybody else in the meantime.

xthrash

bucksbloke said:

You've bought a new build and I'm guessing you have exchanged contracts and are contractually committed to complete on the day stated (or after they've given you notice to complete). Unless you can get agreement from all of the people in the chain to vary the completion date, then legally you have to complete.

Your developer also does not have to fix every issue before you move in. You are still entitled to have them fixed. On my last new build they were still fixing issues - 18 months after we moved in. You do have to chase the builders, our builder uses an online tracking system so we can see when stuff is going to be completed etc.  The builder will be used to fixing issues around you, they do it on virtually every site. 

Thanks for the reply. We haven’t exchanged yet and so the completion date isn’t fixed, or at least hasn’t been agreed with our solicitor. I’m struggling to recall how we arrived at this completion date in all honesty because it’s very optimistic given the current covid-19 situation as anything could change between now and then.

Its not our first new build so we know there will be issues but they are more than a bit of cracked plaster or the wrong fittings. It’s more missing appliances and damaged windows. I’m not sure how it got the CML certificate because from what I’ve seen, it shouldn’t have.

xthrash

davidmcn said:

If you haven't exchanged then nobody can "force" anybody to do anything. Why not just wait? It doesn't seem likely that they'll sell to anybody else in the meantime.

This is what we were trying to do - wait. But they said we can’t because the incentives offered were based on a completion date of xyz and our contract says we have to exchange and complete within so many days. I’m not sure what happens if we just refuse, like you say, they won’t be selling it to anyone else in the meantime.

eddddy

xthrash said:

....we’ve now agreed a completion date, we can’t go back on it - even though we haven’t even exchanged yet. 

If you haven't exchanged contracts, why can't you go back on the date?

I'd be pretty sure you have the developer over a barrel. People are not viewing houses at the moment, banks are withdrawing mortgage products from the market, people are losing their incomes, everyone is fearing a property price crash, etc.

If you decided not to buy, I suspect that the developer wouldn't find a buyer for many months, and might take a very big hit on the price.

I think you may be in a very strong position to dictate terms to the developer - when you want to exchange, when you want to complete, what extras you want etc. (TBH, in your position I think I might even wait a few weeks to see what happens to the property market, before deciding.)

Thrugelmir

xthrash said:

davidmcn said:

If you haven't exchanged then nobody can "force" anybody to do anything. Why not just wait? It doesn't seem likely that they'll sell to anybody else in the meantime.

 I’m not sure what happens if we just refuse, like you say, they won’t be selling it to anyone else in the meantime.

You'll lose any money expended and your chain will collapse. If you are unhappy with the build quality cancel the move. The house will still be there in a few months time. 

onthemend88

What are the issues that are holding you back, just out of interest?

xthrash

onthemend88 said:

What are the issues that are holding you back, just out of interest?

Most are the kinda usual snags - scuffed walls, cracked plaster, missing options, etc. Which we could live with. The more important issues are cracked and damaged windows, missing extractor fan in the kitchen, damaged flooring in the bathroom, etc. These aren’t deemed “major” by the developer, which I understand they’re not major but I know they won’t get fixed properly once we’ve moved in.

davidmcn

xthrash said:

davidmcn said:

If you haven't exchanged then nobody can "force" anybody to do anything. Why not just wait? It doesn't seem likely that they'll sell to anybody else in the meantime.

they said we can’t because the incentives offered were based on a completion date of xyz and our contract says we have to exchange and complete within so many days

If you haven't exchanged then there is no contract. There's a draft contract in which everything is (in theory) still up for negotiation.

I wouldn't be chatting directly to the developers, they'll be all too happy to pull the wool over the eyes of (possibly) naive buyers. Put the discussions via your solicitor.