Completion date on new build

dosh1

I am buying a house new build and whilst the developers told me (at the start) that the expected move in would be Oct/Nov this year, now that I am close to exchanging they are stating that they cannot give me an exact completion date and that when they do they expect me to move in within 10 days!

This seems very harsh as there is a lot to arrange including removals.  But the biggest issue is that what happens if they miss their timelines and potentially the build is delayed by weeks or months, this has a huge impact on the chain?

Can they do this?  Are we able to force them to provide a completion date?

user1977

They can't promise a completion date just now, unless you're happy to buy a house they might not have finished building. This is all completely normal when you're buying off-plan, and why it's a big hassle for somebody doing this to be in a chain.

How long ago did your solicitor get the draft contract? It would all have been clear from that.

eddddy

What you describe is normal for a newbuild - but it's bad that the developers didn't make it clear to you from the outset.

(You could even argue that the developer has broken consumer protection laws by omitting material information that is likely to impact your decision to purchase. For example, you shouldn't have to pay a solicitor before you find this out.)

But anyway, just to add, you'd normally add a 'longstop date' to the contract - to prevent you having to wait 'forever' for the house to be built. If the house isn't ready by the longstop date, you can walk away without penalty.

(In reality, you would typically align the longstop date with the expiry of your mortgage offer - so maybe 6 months away.)


As you say, this is a challenge if you have a chain below you. Either the whole chain has to accept the same exchange / completion / longstop terms as you, or you have to break the chain by moving into temporary accommodation.


 

theartfullodger

You've not been talking to a trustworthy representative but salesmen, only interested in targets and commission.  Don't believe them.  Plus shortages of staff and materials due to br+xsh+t's great success.

Assume quite a delay.  Explain you are considering walking away and that social media is so powerful.  

Good luck.

comeandgo

I don’t think they expect you to move in within 10 days, only to have completed by that time.  You can still be staying where you are.

user1977

comeandgo said:

I don’t think they expect you to move in within 10 days, only to have completed by that time.  You can still be staying where you are.

It sounds like they're selling, so that's unlikely to be feasible.

saajan_12

This is fairly standard for new builds, where the normal process is:
* completion on notice, ie 10 days after they serve notice
* long stop date so if they haven't completed by that date, you can walk away (note this doesn't mean they have to complete by then)
* either everyone in the chain agrees to the same completion on notice terms, or you break the chain ie sell, move into rented and then buy. 

You can ask but unlikely they'll be able or willing to change for you - they won't know when the build will be ready as there can be delays, and if you refuse then other buyers will be willing ot work on that basis because that's just how new builds work. 

Re consumer protection laws - very unlikely., this is a transaction typically underpinned by expert representation (solicitors) so the onus is more on you to figure out how it works with their help. Also this is very standard procedure, so perhaps reasonable that the builder assumes you know that (they also don't tell you that you pay on the same day you get keys, but its assumed you know that). 

housebuyer143

To add, the new build could be delayed many months. My sister was due to move in, in Feb. Now it's September and there is still no completion date and they can't advise when. 
You probably will need to break the chain or you risk losing your buyer.