Delayed completion but vendor seeking exchange without long-stop date

MeAndMrG

For the past few months I have been attempting to purchase a house, but it now looks as though the sale will fall through. The vendor is a house builder, purchasing it from the current owner as part exchange for a new build property and then selling it on to me. 

The sticking point is that whilst the completion date for the new build has now slipped by five months, the vendor is pushing me to exchange swiftly, whilst refusing to put a long stop date in the contract.  Whilst they have included a rider which would give me time to obtain a new mortgage offer if my existing one expires between exchange and completion, I understand that the lack of a long stop date would prevent me from ending the contract without losing 10% of the purchase price regardless of how long it takes them to complete on the new build, or even if the vendor went into administration in the meantime. My solicitor is clear that I shouldn't exchange on this basis - a position which has infuriated the vendor to the extent that they suggested I should move to a Conveyancing firm of their choosing! They have now given me an ultimatum, either to agree to exchange on the current conditions or have the property put back on the market.

I am pretty resolved now to losing the property and starting again, but I did want to check whether anybody on this forum had any ideas on anything else we could try to keep the purchase alive, and whether I am right to be concerned about the risks of exchanging on this basis. The Estate Agent and vendor both suggest this approach is par for the course when purchasing from house builders, inferring I'm the one being unreasonable., but it feels really unfair to transfer the vendor's risk from the new build delay on to me in this way, and it would seem extraordinary if buyers usually accept this.

Any thoughts would be appreciated.   

user1977

Your solicitor is correct. 

Doozergirl

I agree with your solicitor too.  There should be a long stop date.  

pinkteapot

100% agree with your solicitor and I absolutely would not exchange on this house. Vendor obviously isn't a large or experienced housebuilder! And the EA works for the vendor and will just support their (unreasonable) line. 

And I say all that being a fairly pragmatic person who has, occasionally, told a solicitor "thanks for your advice but I'm going to choose to ignore it".

There was a thread on here earlier this year, I think, with someone who had exchanged on a new-build flat three or four years ago and was still stuck in the contract. 

Willis75

Par for the course for Estate Agents to bully the offending party. 

Let the vendor put the house back on the market. They are sure to come up against the same issue with another prospective buyer. The reason that the vendor wants you to use their conveyancer is that the conveyancer will work in the best interest of the vendor and not you.

Stick to your guns.

You could also suggest that that the occupants of the vendors property rent meanwhile and give you an early completion date.

SpiderLegs

Absolutely not.

Flugelhorn

your solicitor is right - this is very unfair on you, the vendor is wanting it all their way 

MoneySavingNovice

As others have already said your solicitor is correct, under no circumstances should you agree with the vendors,  and stick with your solicitor they are giving you good advice on this aspect so it's more than likely they are on your side,  unlike the proposed conveyancing firm suggested by the vendor.

They are playing 'hard-ball so I suggest that if you are truly reconciled to walk away,  give the vendors an ultimatum which is, of course, beneficial to you.....something like agreeing on a target completion date of 5 months,  but for every additional month up to a year a 5% discount on the purchase price applies if completion is not completed within one year they will relieve you of all obligations and refund all you costs,  and if you are unable to secure a mortgage you can walkaway with a full refund.

Marvel1

There is only one party looking after your interests and you are paying them.

GDB2222

The developers must know they are being unreasonable.  I guess they are just trying to bully you. 

rexmedorum

Your solicitor is correct, it would be utter madness to agree to this.