Developer threatening to withdraw contract unless I switch to their solicitors.

AbujaBlue

The developers of a new-build flat I am buying called me today at 16:45 saying that the 'head office' has decided to stop dealing and not respond to my conveyancing solicitors, and will only proceed the sale with me if I switch to their chosen solicitors. As I went through a conveyancing service, I decided to call them first in the few minutes I had before closing time, and they were adamant that this is not allowed. They tried contracting the solicitors, but could not get through. So I have to wait until tomorrow morning

Some important points to consider - I reserved the flat in late July, so we are well passed the 42 day reservation period. The completion date has also been delayed by two months. I am also a first time buyer, so consider myself a bit naive on these matters, but I have been very quick to respond to emails, requests, and have rapidly sent any required information. I am worried now that my blind faith in my solicitor, chosen by the conveyancing service, hasn't helped. I'm also quietly angry with the developers for a lack of advanced warning over this letter.

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A quick background (skip to further down if you wish)

The conveyance service I chose has excellent reviews on Google and elsewhere, so I had no problem selecting them after the initial incentives offered by the developer to use their solicitor were withdrawn as part of my counter-offer. Fine, I thought, everywhere I turn online the advice is don't developer solicitors with a barge pole. Right?

The solicitor was chosen, and it got off to a quick start, promptly submitting everything required. The property searches etc. were also ordered quite quickly. A good start, I thought.

But a couple of weeks after this point, alarm bells started to sound. Firstly, my solicitor had not been responding to questions raised by my conveyance service (who have been really supportive throughout). Questions like, in mid-September, asking the solicitor to please keep me updated on the raising of enquiries, but there were no updates.

Now in late september the developers were asking me if I have heard back from my solicitors. I tell them I haven't but my mind is put to ease when myh solicitor sends me the mortgage report in early October But for the whole of October, I hear nothing about raised enquiries, other that 'they are being done'.

In late October my developers then ask if I have received the report, which I hadn't. From this period I start to call the solicitor, with no luck. The conveyance service were also trying (and failing) to get an update from the solicitor.

And then we come to the crunch. The developers tell me last week that they have set an exchange deadline for the Friday. I try to contact the solicitors with no luck, and I am told by the conveyance service that these are common 'scare tactics', and am given a new timeline which I pass on to the solicitors.

I was inclined to believe them about the scare tactics, but the developers ruin my Sunday by calling and again issuing the threat, saying it is 'up to the head office' on Monday morning to decide what happens. I'm polite but I point out that giving a deadline to draw up a contract, send it to me, and for me to then send it back with the exchange money, all within 3 working days, is quite ridiculous. He says a letter has been sent to my solicitors, and I say that I have not seen said letter. He basically scoffs that that speaks for itself with these solictor. He also says this is to give the solicitor a wake up call, so my mind is eased a little bit, and besides, surely they must be insane to pull out when we are finally so close to getting there?

So, we reach today (Monday). I call the solicitors every hour until finally I get through (around 2-3pm). 15 minutes later, I am sent a number of enquiries that have been raised concerning the contract, which all look very reasonable amendments to the contact (e.g. adding help to buy references, removing a certain point from the contract etc). Great, right? A little late, but I begin to compose an email to the developers updating them on the progress, only while writing that email (and during a busy work day) I get the phone call saying the head office has decided to withdraw the contract from my solicitors.

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They say I must use their solicitors to continue with the purchase. Are they allowed to do this? Apparently, another buyer did the same last week with them (although my BS radar is working overtime at this point so I don't know what to believe).

What should I do? This is a dream new build flat close to my work place so I do not want to lose it. If I did switch over, what are my rights over refunds from the conveyancing service over poor service (I have only paid a deposit and for the property searches so far - the property searches I am fine with)

ps. I don't want to name any of the firms yet for obvious reasons, but I should point out that the developers are not one of 'big ones' with a bad reputation, they are joined with a mid-sized firm with good trustpilot reviews.

Any help would be very much appreciated. This whole thing has been a massive stress and I just want it to be sorted,

Slithery

Until exchange of contracts the developers can withdraw for whatever reason they wish.

canaldumidi

Not sure why you have a 'conveyancer service' and a solicitor. Seems like an dded complication and no idea what their respective roles are. However, if the developer is insisting on using their solicitor, alarm bells would ring for me and I'd refuse.

Of course, as Slithery says, they could withdraw from the sale (for this or any other reason), so it depends if they are bluffing, and how committed you are etc.

But when people back me into a corner, I tend to fight my way out, and with a multi-hundred-thousand pound purchase there's no way I'd compromise on 100% impartial, independant, legal support.

michael1234

It looks to me like the developer hasn't been getting very far with the transaction. Several months have passed and it would seem there is no draft contract and no sign of an exchange date. The sellers (the developer) will obviously be keen to sell so it would point to your solicitor that has been slow.

Also we are or have been in a rising market so the price you were given is probably lower than what folk are being offered the flats for now. That means they might be happier than you think about aborting the transaction.

You do know flats and leaseholds are a hot topic right now? Make sure you understand all the issues before you buy. (Google them).