Stop Clause for Exchange on Notice

LGib

Hi I’m buying a new build property off plan that is due for completion in November. My solicitor is pretty much ready to exchange but they have requested the developers solicitors to put in a stop clause because we are exchanging on notice and our mortgage offer will officially expire before the completion date (although we can get an automatic 6 month extension). 

As I’m new to all this I didn’t really register what a stop clause was and feel a little dumb asking because I should have asked on the phone with my solicitor but could anyone give me a run down if what it means exactly? 

user1977

It just means you have the right to pull out if completion hasn't happened by a particular date.

Irishpearce26

As above, its a safeguard to stop the developer delaying completion. Example November completion with a stop clause by end of November, developer can give you anything between 7-14 days notice of completion but this cant go past the end of November. They just wont give a definite date but a stop clause will mean they have to by a certain end date.

eddddy

It's more often called a 'long-stop date'. The 'long-stop date' will normally be a few days before your mortgage offer expires.

Just to be clear - it's not a guarantee that the house will be ready by the 'long-stop date'. 

It means that if the house isn't ready by the 'long-stop date', you can walk away if you want (because your mortgage offer will have expired).  But if you manage to get your mortgage offer extended, or you manage to get another mortgage, you can still go ahead with the purchase, after the 'long-stop date'.

GDB2222

LGib said:

Hi I’m buying a new build property off plan that is due for completion in November. My solicitor is pretty much ready to exchange but they have requested the developers solicitors to put in a stop clause because we are exchanging on notice and our mortgage offer will officially expire before the completion date (although we can get an automatic 6 month extension). 

As I’m new to all this I didn’t really register what a stop clause was and feel a little dumb asking because I should have asked on the phone with my solicitor but could anyone give me a run down if what it means exactly? 

Are you saying that the long stop date is November, but your mortgage offer expires before then? It either does, or it doesn't. There's no officially about it. Is the automatic extension guaranteed? Or are there strings attached?