New Build Purchase - 28 Day exchange - being pushed to use builder's recommended solicitors

info_maniac

I reserved a new build a couple of days ago and I am now being pushed by the builder to use a solicitor firm on their 'panel'. There is also a push to do a "28 day exchange". This is a house which is nearly ready, someone else was buying it, but I am told that the sale has fallen through as the buyer's downward chain broke. I am a first time buyer so they called me and asked if I wanted to reserve this house and I went ahead. 

From my side, I am okay to get as quick as possible, but am not sure I should skip the searches.
Also, when I told the builder's sales office that I would like to exchange and complete on the same day, they have denied this and have said that they only do completion on the last day of the month.


I am not sure if I should use the solicitors recommended by the builders as these solicitors say that they will not conduct searches but instead will go for "search indemnity insurance" for £50+VAT.
Even if I go for the searches, the solicitor told me that we can exchange contracts even if search results are pending. It appears that there is a rush to do the exchange of contracts even if the legal work or searches are not complete.

The builders are after my life to use this solicitors firm, I have called a couple of local solicitors firms and all of them insist to do searches.

I am not sure if:
a) I should go for the search indemnity insurance
b) I should exchange contracts even if search results are pending

This is a greenfield site.

Any suggestions will be helpful.

Thank you!

Thrugelmir

Are you buying with a mortgage? 

info_maniac

Thrugelmir said:

Are you buying with a mortgage? 

Yes, with a FTB mortgage.

I was even being pushed to use a mortgage advisor on their panel, but as I had spoken to another advisor already I told them I will use mine.

TBG01

info_maniac said:

Thrugelmir said:

Are you buying with a mortgage? 

Yes, with a FTB mortgage.

I was even being pushed to use a mortgage advisor on their panel, but as I had spoken to another advisor already I told them I will use mine.

Then you require searches.

Thrugelmir

Then there'll be no shortcuts. Keep the process moving along and the 28 day period will be extended. 

info_maniac

I reserved on Thursday evening and I have been given a 48 hour deadline to instruct the solicitors and apply for mortgage,

There is a stamp duty contribution incentive involved and also this house had some upgrades installed which do not come as standard (the previous buyer chose them as part of his option upgrades). I am told that these incentives are valid only when keep the 48 hour deadlines and exchange between 28 days.

When I insisted that I will use my own solicitors, I was told that I will have to exchange within 28 days even if search results are not back by then

74jax

From someone in new build for the last decade, 28 day exchange is normal. 
They are pushing for their solicitors because those solicitors will understand the new build process and be able to work to those deadlines. 
However. 
Phone round your own sols, ask prices and their deadlines. Make sure they know its new build. Some solicitors may decline knowing they can't meet the deadlines, but phone round and go with who you want. Do not be pushed into using their solicitors.

Edited to add - is it a large builder? I can't imagine every house completion is on the same day. Sales advisors will be running around from one plot to the other and sales managers will have a hell of a lot of calls if there's issues on plots in the area.  My area's around 100 miles long, with about 25 sites on it and over 1k plots. I guess if its a small builder maybe, but are you sure you have this bit correct? 

info_maniac

74jax said:

From someone in new build for the last decade, 28 day exchange is normal. 
They are pushing for their solicitors because those solicitors will understand the new build process and be able to work to those deadlines. 
However. 
Phone round your own sols, ask prices and their deadlines. Make sure they know its new build. Some solicitors may decline knowing they can't meet the deadlines, but phone round and go with who you want. Do not be pushed into using their solicitors.

Edited to add - is it a large builder? I can't imagine every house completion is on the same day. Sales advisors will be running around from one plot to the other and sales managers will have a hell of a lot of calls if there's issues on plots in the area.  My area's around 100 miles long, with about 25 sites on it and over 1k plots. I guess if its a small builder maybe, but are you sure you have this bit correct? 

So, should I skip the searches (and buy indemnity insurance) OR should I exchange even if the search results are pending?

This is a large builder with initials BH. They have done 2 other new build sites in my area. This site is 240 houses in total split between two developers. The other developer has 70% houses on the estate with three social housing block of flats and shared ownership and affordable housing (nearly 40% of the estate).

TBG01

You're getting a mortgage. You can't skip searches. Your lender requires them.

Chumy

1. Get Your own solicitor who will act solely in your own interests(and banks)
2. Ignore their pushing, as long as things are progressing with Your solicitor and mortgage - They will ignore the 28days

***Don't believe anything they tell you - Triple check it.

Thrugelmir

74jax said:

From someone in new build for the last decade, 28 day exchange is normal. 

Same applied when I purchased a new build in 1991.