Long Date Vs Completion Date

YoungDebtFreeWannabe

Hello all,

firstly just want to say a massive thank you to all of those who have been helping with my recent posts, your help has been more valuable than you will ever know.

I have another question for you. I'm currently purchasing a new build flat and asked my solicitor to include a long date within the contracts, she has just come back to me with the following:

'I have been advised by the Developers Solicitors that they will agree to a completion date of the 30th November but this is strictly subject to when the flat will be handed over. If you require further information on this please contact the Sales Office direct. If the Developers agree a fixed completion date then you will not need a longstop date in the contract.'

So Completion date and Long Date are the same thing? Is she right? I'm a clueless first time buyer just trying to make sure I do not make any huge mistakes and one piee of advice a fellow MSE forum contributor mentioned to me was that I must have a long date agreed.

Thanks!

moneysavinghero

They are saying that the completion date is due to be 30th November. But if the house has not finished being built by then, then you obviously you will not be able to complete.. Longstop would be a date that if the house is not ready by then you will be able to walk away.

Think the solicitor is saying that if the developer states a fixed completion date in the contract then you would be able to walk away anyway if they don't complete by that date.

YoungDebtFreeWannabe

moneysavinghero said:

They are saying that the completion date is due to be 30th November. But if the house has not finished being built by then, then you obviously you will not be able to complete.. Longstop would be a date that if the house is not ready by then you will be able to walk away.

Thank you! Would you advise that I push to have a long date? Thanks

eddddy

YoungDebtFreeWannabe said:

So Completion date and Long Date are the same thing?

No.

At exchange of contracts, you will either get:

1. A fixed completion date - like 30th November. So you can be certain that's the date you will get the keys, or...
2. No fixed completion date (it's called completion on notice) - and a longstop date. e.g. 30th Jan 2021.

With option 2, completion could be anytime between now and 31st Jan, If the property isn't ready by 31st Jan, you can walk away if you want.

So as your solicitor says, you don't need a longstop date if you have a fixed completion date of 30th November  (i.e. option 1)

AdrianC

Longstop is the date after which you are released from the contract if they can't complete. If the flat isn't built by <longstop> for whatever reason, you get your deposit back and are free to go elsewhere.

Completion is the date you actually buy and get the keys. Obvs, that has to be after the flat is fully built and signed-off.

So that quote is saying that the developer are agreeing to a 30/11 completion, but that's subject to the flat actually being signed off. Because it's a fixed date, there's no need for a longstop.

I would presume that the flat is pretty much ready to go, and there's just a bit of final i-dotting-and-t-crossing to go. Probably around things like the common areas being signed off. If they weren't very certain 30/11 was achievable, they'd not be going for it.

YoungDebtFreeWannabe

eddddy said:

YoungDebtFreeWannabe said:

So Completion date and Long Date are the same thing?

No.

At exchange of contracts, you will either get:

1. A fixed completion date - like 30th November. So you can be certain that's the date you will get the keys.
2. No fixed completion date (it's called completion on notice) - and a longstop date. e.g. 30th Jan 2021.

With option 2, completion could be anytime between now and 31st Jan, If the property isn't ready by 31st Jan, you can walk away if you want.

So as your solicitor says, you don't need a longstop date if you have a fixed completion date of 30th November  (i.e. option 1)

Thans Edddy! What I'm confused about is how she says subject to when the flat will be handed over, so that means they can keep moving the goal posts right? Sorry, my solicitor has been really hard to work with through this process and I also recently found out that they are the developers preferred local partner so they tend to push the agenda of the developer. So I'm constantly second guessing everything she says to me. Thank you! 

YoungDebtFreeWannabe

AdrianC said:

Longstop is the date after which you are released from the contract if they can't complete. If the flat isn't built by <longstop> for whatever reason, you get your deposit back and are free to go elsewhere.

Completion is the date you actually buy and get the keys. Obvs, that has to be after the flat is fully built and signed-off.

So that quote is saying that the developer are agreeing to a 30/11 completion, but that's subject to the flat actually being signed off. Because it's a fixed date, there's no need for a longstop.

I would presume that the flat is pretty much ready to go, and there's just a bit of final i-dotting-and-t-crossing to go. Probably around things like the common areas being signed off. If they weren't very certain 30/11 was achievable, they'd not be going for it.

Thank you so much for responding to me adrian, i really do appreciate your helpful explanation! My worry is when she says subject to flat being ready, if it's not ready then they could keep pushing back right? Atleast with a long stop I have a get out clause, right? Thanks again!

eddddy

YoungDebtFreeWannabe said:

Thans Edddy! What I'm confused about is how she says subject to when the flat will be handed over, so that means they can keep moving the goal posts right? Sorry, my solicitor has been really hard to work with through this process and I also recently found out that they are the developers preferred local partner so they tend to push the agenda of the developer. So I'm constantly second guessing everything she says to me. Thank you! 

They can only move the goal posts before you exchange contracts.  If you exchange contracts with a fixed completion date of 30th November, it cannot be changed.

But they can still change their minds before exchange of contracts, for example, they might decide to go for a fixed date of 14th December.

But I agree that the letter from the solicitor is not clearly worded.

tim_london

Just need ask solicitor how the contract is written and that you want to ensure there is a get out clause for the deposit post exchange if the completion date changes.  

You don’t want to be in a position where if developer delay by 10years you are still liable for 10% deposit if you pull out.