New build reservation

pjw1592

Hi all!

I reserved a new build property in July 2020 which was due for completion in September 2020. It has been delayed over and over again, and is now due for completion in July 2021.

When the completion date was pushed back again, the builder agreed to a price reduction to allow me to still go with the help to buy scheme. To do this I had to sign another reservation form agreeing to the new terms.

Since that date, the sales rep has been difficult in that she hasn’t sent over the necessary documents for my mortgage offer to be changed, and for the Help to Buy application to be restarted. 

My mortgage advisor has suggested that he is concerned they may be wanting to go back on their word, and sell the property from under my feet for the original asking price, despite the property being reserved. Is this possible? If so, would I be able to take legal action against them for doing so?

Many thanks for your wisdom!

teachfast

What do the terms of the reservation say? If there's a time limit and you go beyond it, then they can withdraw from it. They may be stalling for this.  I don't think you have much come-back. You can't force them to sell to you and you're unlikely to be successful in trying to reclaim any costs you may feel you have incurred. Courts won't pay for annoyance factor. It's underhand but most of the industry is - they all just assume it's ok. 

AdrianC

Have you exchanged?
If so, what's the long-stop date?

pjw1592

AdrianC said:

Have you exchanged?
If so, what's the long-stop date?

Not yet! In order to get the mortgage offer changed, we need the reservation form to be signed by the builder and an updated CMI form to be produced.

It’s really all turned out to be such a nightmare!

pjw1592

teachfast said:

What do the terms of the reservation say? If there's a time limit and you go beyond it, then they can withdraw from it. They may be stalling for this.  I don't think you have much come-back. You can't force them to sell to you and you're unlikely to be successful in trying to reclaim any costs you may feel you have incurred. Courts won't pay for annoyance factor. It's underhand but most of the industry is - they all just assume it's ok. 

I’m still waiting for a copy of this to be sent to me! I believe my mortgage adviser has a copy, and it states that the deadline is 28 days after reservation. Surely if there’s evidence that we have been following up on this persistently, they cannot come back and say that the 28 days reservation is up?! Or am I being naive to what goes on in the property world?

teachfast

Sadly they can. Most give flexibility on this, sometimes quite a lot. But they have the fallback position if they need it.