Pulling out of purchasing a new build in Scotland

Rubypup1

We were in the process of getting a new build built by a construction company.as it had to stop due to the corona we are supposed to move out our house on the 28th May. As that is the entry date for the guy who purchased  our house. We will have to rent temporary accommodation which means there is added costs that could go on for some time. I am honestly considering if we could pull out of the new build. We did however sign our missives at the end of February. But the disposition hasn’t been concluded yet.  What would be the penalties if we decided to pull out of the purchase. 

Steve_KCS

I think you need proper legal advise at this stage. Unless there are property lawyers on here I wouldn't take too much for gospel. 

That being said you'll get some good rental options right now. I'd suggest you haggle the cost of your rental off the purchase price come transfer of monies to the new build. 

Who is the developer? 

ProDave

You would need to discuss that with your solicitor.

Do you still want the house?  If so I would tell the vendor you expect them to cover your costs of renting until completion.

With the present situation, impending recession and what that might do to the housing market and prices I would not want to stop the sale, and then being a chain free buyer in rented would put you in a strong position in a buyers market.

davidmcn

Do the missives include a longstop date i.e. entitling you to withdraw after a certain date? There'll be a clause detailing your liability for failing to pay the price when you're meant to, which usually means all of the seller's costs for reselling the property and any drop in value between the price you agreed and the price they eventually achieve, so could be very expensive. Hopefully your solicitor explained all that to you before you concluded.

Anticipated timescales for building are unreliable enough at the best of times, you should really have planned for staying somewhere else in between anyway.

[Deleted User]

As above, this is really something you need to discuss with your solicitor. 

Joyful

My Solicitor will not let me sign the new build missives until I have a buyer, as there is a 5% per day penalty if I do not pass the money over on the date they want! I am in Scotland.