New Build : Loss of incentives if we dont exchange on a specific date

samjackson1402

Hi.

We are buying a new build with Ashberry Homes, they told us that we need to do the exchange of contracts by Friday the 17th of December or we loose our incentives. We have spoken to our solicitors who said we are not ready to do this by Friday but the builders always say you will loose the incentives.

Has anyone else had this where the builder has said they will loose the incentives but still received them when the contracts have been exchanged later than the deadline? Our solictors are convinced we wont loose them and the builders always say it.

Thanks

user1977

Usual negotiation nonsense, whether you're talking about houses or anything else - what happens if you're ready to exchange on Monday and tell them you still want the incentives? Are they really going to flounce off and try finding a different buyer from scratch?

samjackson1402

user1977 said:

Usual negotiation nonsense, whether you're talking about houses or anything else - what happens if you're ready to exchange on Monday and tell them you still want the incentives? Are they really going to flounce off and try finding a different buyer from scratch?

This is what I thought, why would they risk us pulling out and having to find a new person to buy the house.

TripleH

It's also the question of why there is a perceived delay from the builders.

It's a bit rich suggesting to withdraw incentives if their solicitors are slow answering queries etc. Also if they keep extending the expected finish date why should you hurry to exchange.

Whether the finish date is down to materials being delayed by covid / brevit / difficult cat is to some extent not your problem but theirs. It should also be factored in their calculations for client management.

It maybe nearly year end so pushing for exchange for their bonuses but again, that's not your problem.

samjackson1402

TripleH said:

It's also the question of why there is a perceived delay from the builders.

It's a bit rich suggesting to withdraw incentives if their solicitors are slow answering queries etc. Also if they keep extending the expected finish date why should you hurry to exchange.

Whether the finish date is down to materials being delayed by covid / brevit / difficult cat is to some extent not your problem but theirs. It should also be factored in their calculations for client management.

It maybe nearly year end so pushing for exchange for their bonuses but again, that's not your problem.

Our solicitors are apprently not ready as they have some more stuff to do, I'm not sure if the builder is delaying anything

ciderboy2009

The simple option is to tell the developers that, if the incentives are removed, then your offer will be reduced by the value of those incentives (they're always massively overvalued).

Obviously this doesn't work if there's a large demand for properties on the estate being built and they will be able to easilly re-sell your plot.

TripleH

It might be that your solicitors are delayed because the developer's solicitors took their time responding. We had a purchase where the developer's solicitor would take weeks to respond but yet we were being pushed to exchange 2 days after our solicitor received a response (even if it didn't answer the question ours asked). That tactic didn't work on us.

If it is something like the searches, tell the developer. This is outside your control and as long as that is the reason, the developer will know it is not you causing the delay.

Willis75

I’m in the same position. Should have exchanged by the end of October and completed today. Completion pushed back till 22nd December BUT we still have not exchanged OWING to builders solicitors. 

They are so bad at responding my solicitor is tearing her hair out. Even mortgage solicitor is still waiting for a response so they can release funds.

At one point I was harassed daily by sales manager to exchange till I not too politely said ‘ before you ring me again, please ring your legal team to see if they are ready to exchange and if not, don’t ring me again’. Harassment stopped.

tinytiddles

I would do exactly what someone else has already suggested, tell them if the incentives go then the price needs to be reduced accordingly. It sounds like the usual sales office nonsense trying to pressurise you into preceding. We had similar - “we’ve had a higher offer in via head office so we need a decision from you about reserving”. I told them to fill their boots then and take the higher offer, they soon changed their tune!! 

Developers legal departments are a pain in the backside and don’t keep their on-site sales people up to date either. I had to fire a rocket up their proverbials after their constant ridiculous enquiries and delays (we were part ex-ing as well) and it soon stopped.

So in a nutshell, don’t take any nonsense from them and stand your ground, don’t forget these people are professional property sales people not someone just selling their home to move on so they know every trick in the book. Good luck!