Unusual off plan purchase

Ybe

Has anyone ever heard of such a case before?  

I came across a new build where construction is complete. However, for some reason, on 1 of the plots, they have a window where there should be a door out to a private terrace. The developer says it’s as originally the plot wasn’t meant to have a private terrace. In order to put this door in, there is a retaining wall holding up the terrace which needs to be strengthened which is reliant on a legal agreement from a neighbouring block of flats. They then bring in a new contractor to install the door and fencing. This is likely to take a year by the developers estimate but they want to sell the plot now. Are there risks to this? 

Ramouth

Can you clarify the question?  Do you mean is there a risk that the terrace will never be sorted out and you won’t have access to it?  

AdrianC

Don't buy that plot, if the window instead of a door is an issue for you.

eddddy

Ybe said:

 Are there risks to this? 

What will your contract with the the developers say about this?

• Will the contract guarantee that a legal agreement will be signed with the neighbour and a terrace is constructed with a year? (It seems very unlikely that they can guarantee that.)

• Or will it say something like "best endeavours" will be made to get a legal agreement and terrace constructed,

• Or something else?

Is there some kind of agreement that you will pay less for the flat, if it doesn't end up having a terrace? 


TBH, if the developers haven't managed to get an agreement from the neighbours so far, I think it's unlikely they'll get it in the near future.  And once the flat is sold, they won't care so much about the terrace anyway.

Ybe

eddddy said:

Ybe said:

 Are there risks to this? 

What will your contract with the the developers say about this?

• Will the contract guarantee that a legal agreement will be signed with the neighbour and a terrace is constructed with a year? (It seems very unlikely that they can guarantee that.)

• Or will it say something like "best endeavours" will be made to get a legal agreement and terrace constructed,

• Or something else?

Is there some kind of agreement that you will pay less for the flat, if it doesn't end up having a terrace? 


TBH, if the developers haven't managed to get an agreement from the neighbours so far, I think it's unlikely they'll get it in the near future.  And once the flat is sold, they won't care so much about the terrace anyway.

This is my concern. The developer originally didn’t plan to put this plot on the market until the issue is resolved. They only said they’ll sell it to me as I enquired about the plot. They did not tell me about the issue until I met them on site. They claim the neighbours seem fine with it but there’s no legal agreement in place. They’ve said they can put in a long stop date 9 months away but as others have said, once the plot is sold, what incentive is there for the developer to complete the work properly or at all.  And what happens if they never get that legal agreement.

user1977

Ybe said:

eddddy said:

Ybe said:

 Are there risks to this? 

What will your contract with the the developers say about this?

• Will the contract guarantee that a legal agreement will be signed with the neighbour and a terrace is constructed with a year? (It seems very unlikely that they can guarantee that.)

• Or will it say something like "best endeavours" will be made to get a legal agreement and terrace constructed,

• Or something else?

Is there some kind of agreement that you will pay less for the flat, if it doesn't end up having a terrace? 


TBH, if the developers haven't managed to get an agreement from the neighbours so far, I think it's unlikely they'll get it in the near future.  And once the flat is sold, they won't care so much about the terrace anyway.

They’ve said they can put in a long stop date 9 months away but as others have said, once the plot is sold, what incentive is there for the developer to complete the work properly or at all.  And what happens if they never get that legal agreement.

The incentive is to stop you walking away if nothing has happened by the longstop date. So in that sense you can be protected, by not completing your purchase until the work is done and the legal agreement is in place, but if this is all completely at the discretion of the neighbour then you could be wasting your time and then have to start looking again next year.

Ybe

The long stop date means that if it’s not delivered by that date, I can walk away with no penalties.  But it’s still a lot of money to gamble and could be effort to get money back once paid. 

user1977

Ybe said:

The long stop date means that if it’s not delivered by that date, I can walk away with no penalties.  But it’s still a lot of money to gamble and could be effort to get money back once paid. 

Then don't offer them a big deposit. And/or make sure it isn't them who are holding it

Ybe

user1977 said:

Ybe said:

eddddy said:

Ybe said:

 Are there risks to this? 

What will your contract with the the developers say about this?

• Will the contract guarantee that a legal agreement will be signed with the neighbour and a terrace is constructed with a year? (It seems very unlikely that they can guarantee that.)

• Or will it say something like "best endeavours" will be made to get a legal agreement and terrace constructed,

• Or something else?

Is there some kind of agreement that you will pay less for the flat, if it doesn't end up having a terrace? 


TBH, if the developers haven't managed to get an agreement from the neighbours so far, I think it's unlikely they'll get it in the near future.  And once the flat is sold, they won't care so much about the terrace anyway.

They’ve said they can put in a long stop date 9 months away but as others have said, once the plot is sold, what incentive is there for the developer to complete the work properly or at all.  And what happens if they never get that legal agreement.

The incentive is to stop you walking away if nothing has happened by the longstop date. So in that sense you can be protected, by not completing your purchase until the work is done and the legal agreement is in place, but if this is all completely at the discretion of the neighbour then you could be wasting your time and then have to start looking again next year.

It is 100% at the discretion of the neighbour. The developer can offer as many words as he wants with regards to having a good relationship with the neighbours etc. He still has no control over it especially as the neighbouring block is a share of freehold and requires the signature of every freeholder. All it takes is 1 person to derail things. 

Ybe

The other risk for me is that I can’t physically view the plot in question for a month (when viewings start and their show room is ready). If I reserve, they want me to get to the point of exchange before that point. 

getmore4less

I would be going through the planning to see what they were supposed to have built.