Early Exchange Concerns

saajan_12

FinallyStoppedLurking said:

Isn't it possible to negotiate down your exchange deposit? Would this be an option?

sb82 said:

FinallyStoppedLurking said:

Isn't it possible to negotiate down your exchange deposit? Would this be an option?

Great idea! I have emailed our solicitor to see if they would take a much lower deposit I've gone for 5000 instead of the 20 000 they want. It would be so.much less stressful if we could exchange with a smaller amount.  I really hope they will go for it. Thank you I'd not thought of asking that! 

No, exchanging doesn't JUST mean your deposit is at risk. You're also agreeing that you will purchase that property, so if you subsequently don't (eg if mortgage withdrawn, job lost, lockdown issues change the local market etc) then you're liable for the seller & house builder's losses as a result. This could be the seller's deposit paid to the house builder, the house builder's loss if they can't resell at a the same price, legal costs, etc. Its not limited to your deposit amount. 

Thrugelmir

The vendor can still pursue the balance of a 10% deposit. Not limited to the amount actually paid at exchange. 

Markneath

Don’t exchange and don’t feel bad for the seller they are looking for you to exchange now to cover their risks with buying a new build.

The agent is representing the seller who pays them not you, of course they want you to exchange so your tied to the deal.

Personally I wouldn’t exchange without an agreed completion date of 2-3 weeks in the future at the most. 

Don’t be bullied by estate agents and don’t take what they tell you as a must do.

Sistergold

Why would you exchange now? They are the ones with a problem not you! In this long wait a better property could come up at a lower price and you should be free to make a decision. Also if nothing else happens you just wait while they get ready and exchange nearer the time. If they want to secure this sale they need to complete with you and move into rental if their new build encounters problems it then does not affect you. This early exchange is them covering their backs while yours is fully exposed! If I were you with the uncertainties I would go ahead and find another property but if their time frame suits you then wait without exchange. 

GDB2222

sb82 said:

 we made an over asking price offer. 

I was thinking that the vendors must have given you 10-20% off the price as an inducement to enter into this pretty suicidal arrangement. 

Look, I'm sorry but whatever money you've sunk into this deal in fees is lost money. Just go and find a different property that's actually for sale, with realistic vendors. 

OldMusicGuy

Whatever you do, you must NOT exchange. We have just bought a new build and I can tell you that there are likely to be all kinds of delays (we experienced them), especially with lockdowns still likely. This is your vendor's problem like everyone else says. They should either go into rented or accept they cannot buy a new build (or they should be trying to part ex their house).

FWIW we went into rental after selling our house. We ended up moving in six months later than originally intended.