Unconditional contract

catprofit

The seller of the house I'm buying wants me to sign an unconditional contract as she is buying a new build. My purchase is not contingent on her buying her new build I've been ready to exchange for ages and she is refusing to move until her house is ready. If l sign the contract I will be legally obliged to wait however long it takes her to move into her new home. This has been under discussion for 3 months and I am living in hotels as I was expecting a completion date. She has simply not taken my position into consideration. I am now sick of all the stress this has caused and I am now prepared to walk away and find another house. I know this will cost me but I am prepared to take the hit. Any advice

El_Torro

To me it sounds like this unconditional contract only benefits the seller, not you at all. Therefore I wouldn't sign it. After all she's strung you along for this long, why would she ditch you now and find another buyer?

You pulling out and finding somewhere else to buy is another story. Sure, you can do it. How long will it take for you to find somewhere suitable and complete on that though?

MaryNB

Do not sign a one sided contract.

There's no obligation on her to move out until her new home is ready. Did she previously say she would move out even if there were delays with the new build? I'm not sure what your previous living situation was but you should never rely on a completion date until you have exchanged. Especially with a new build involved, months of delays are common with new builds.

canaldurhone

As a minimum, only Exchange contracts if you have a long stop date ie if Completion does not happen by (say 3 months) then you can withdraw without penalty. If the seller's house is ready within the agreed period then Completion can be earlier.
But personally I wouldn't Exchange at all. Nor would I walk away. But I would start looking at other properties.
If you find somewhere else, switch. You've not Exchanged so your only costs are legal/surveys etc you might have paid out.
If this property goes ahead before you find somewhere else, great.

eddddy

canaldurhone said:

But personally I wouldn't Exchange at all. Nor would I walk away. But I would start looking at other properties.
If you find somewhere else, switch. You've not Exchanged so your only costs are legal/surveys etc you might have paid out.
If this property goes ahead before you find somewhere else, great.

I'm not sure it's that easy. The OP's seller wants to buy a new build.

New build developers often expect buyers to exchange contracts within 28 days of reservation, with completion on 10 days notice - hopefully with a long-stop date. Expected completion might be many months in the future.

If the OP doesn't exchange contracts within 28 days (or soon after), their seller probably can't exchange contracts with the new build developer either - so the chain will fall apart. The developer and/or the OP's seller will look for a new buyer.



In reality, I think the OP probably has 2 main choices.

• 1) Agree to a contract that mirrors their sellers contract terms with the developer:  i.e. Probably something like: exchange contracts within about 28 days, completion on 10 days notice, and long stop date, or...

• 2) Insist on an early specific completion date - meaning that their seller has to move into temporary accommodation until their new build is ready.

TripleH

If she wants a 1 contract giving no defined end date, you want a deduction in the cost of the house which reduces the cost for each extra month delay.

If you've nor exchanged  you are in a stronger position than she realises as she will struggle to walk away / get a new buyer in a timely fashion if you pull out. She needs you a lot more than you need to be strung along.

Why are you living in hotels? Better to find somewhere to lodge if you can.

catprofit

Thanks for your responses.
The seller seems to be saying nothing to resolve the situation.
I think she feels if she keeps a low profile the completion date will be close and I will sign.
When I offered to buy the house it was a cash purchase with no chain. She hadn't yet found anything at that time,but I do know she has been looking to rent because my part of the process has now finished. She appears to have decided to stay put till her new build is ready. At a cost to me.
I sold my house and moved out as my buyers would have lost their mortgage. 
I was only expecting a couple of weeks because I knew my conveyancing was complete.
I will not be signing any contract because she will have all the advantage. I have already insisted on a completion date we are two weeks into the time and there are two weeks left. I feel I have given opportunities to come to some arrangement as this has been going on for 3 months now and I seem to be paying for accommodation while she should vacate the property.
I have come to the point where I am happy to walk away and pay the cost.
This is quite a stressful situation but I will learn from it
Other houses are available. I know this will take longer but I would expect the seller to suggest something to resolve the situation. 

GixerKate

So right now you are already inbetween homes and living in hotels?  And there isn't a chain?

I would give an ultimatum to exchange and complete on your house purchase (NOT on her onward purchase) by sometime like the end of next week otherwise your purchase is cancelled, and stick to it.  Start looking in the meantime and possibly arrange some viewings and make sure your seller knows that you are doing this.

Good luck with getting this sorted.

TripleH

I suspect your seller lied when they said they'd move into rented soas to not loose you.

You are in a very strong position as a cash buyer (assuming no mortgage is needed) and I'd give an ultimatum with deadline and stick to it.

If this falls through it will be easier to look to rent a room. Not ideal but a lot cheaper than your current living arrangements.

catprofit

I was trying to post a comment for my original post but my computer wasn't playing so I have just done a new one.
For those of you who have contributed to my problem thanks so much.
The seller agreed to the original deadline I gave her. I've been assured by my solicitors that if she doesn't complete on the date she will be in breach of contract and have to pay costs.
Obviously she was dragging her feet and probably thought I wasn't serious about pulling out, but when I didn't sign the contract she must have panicked and changed her tactics.
Her exchange date was yesterday and I got a call at 3pm saying she would agree to the completion date for the house I am buying and vacate by the given date. I have given instruction to complete on this house and have not agreed to anything to do with her new build not signed the contract she wanted.
The reason I have been in hotels and Airbnb is because I was told it would be a couple of weeks and minimal rental was six months. It is more expensive short term but cheaper than a six month rental that I don't need. Of course if it falls through I will rent a house.
I knew I was in a strong position and the reassurance given from this forum was extremely helpful.
Thanks for all your support.
Life would be so much less stressful if people were just upfront and honest

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