Developer threatening to re market

kizzy1926

Hi

i am a 1st time buyer due to buy a new build using HTB. 

This morning I received a text stating the developer is going to re market as he wants to exchange this week with the view to complete the following week. 

My solicitor was not responding to emails/calls last week as apparently she was ill. 

Having spoken to her today, she advised they are waiting for one final search relating to planning permission, once she gets these they will raise enquiries. 

The dev has said they will provide a similar search for another flat in the same build if I agree to exchange this week. 

Solicitors started the searches on the 7th September. 

Part of me wants to tell the dev to just go ahead and re market as I don’t see how they expect to get anywhere quicker with a new buyer. 

I know they can legally pull out but he is telling the estate agent that this is in my best interest as HTB is coming to an end, when off course I know nothing is in my interest here. 

Because they have not raised enquired due to the final search not come back as yet would I be stupid to agree to exchange? 

Ps, I am not in a rush to move but I  have chased the solicitors whenever I have been asked to. 

jj_43

If you pulled out I think in a year or two you will be very glad you did.

eddddy

kizzy1926 said:

Having spoken to her today, she advised they are waiting for one final search relating to planning permission, once she gets these they will raise enquiries. 

The dev has said they will provide a similar search for another flat in the same build if I agree to exchange this week. 

Raising enquiries and getting replies is likely to take a week or two (or more), so it seems extremely unlikely that you'll be ready to exchange this week.

If you want, you can suggest to the developer that they can ask their solicitor to offer the searches to your solicitor - then your solicitor can decide if that's acceptable.

(But if the developer means they'll give you the search results in the form of a pile of papers for you to give your solicitor - that won't be acceptable.)

What's the status of your mortgage application? (Assuming you need one.)

anselld

It is not even in your gift to agree to exchange.  The solicitor also acts for the Mortgage Co and they will not allow corners to be cut by missing out on any important searches or enquiries.  You can only keep chasing the Solicitor, keep the Developer informed and hope for the best.

user1977

anselld said:

It is not even in your gift to agree to exchange.  The solicitor also acts for the Mortgage Co and they will not allow corners to be cut by missing out on any important searches or enquiries.

It's a judgement call by the solicitor, the lender won't get involved in the detail.

In general, getting searches for newbuilds is fairly pointless, as the developer's planning process flushes out anything relevant.

And the search results for a nearby plot of mud in Farmer GIles' field are hardly likely to be different from your own plot of mud.

(and strictly speaking, it is in the OP's gift to exchange - though they will of course care about whether they'll get a mortgage at completion!)

GDB2222

user1977 said:

anselld said:

It is not even in your gift to agree to exchange.  The solicitor also acts for the Mortgage Co and they will not allow corners to be cut by missing out on any important searches or enquiries.

It's a judgement call by the solicitor, the lender won't get involved in the detail.

In general, getting searches for newbuilds is fairly pointless, as the developer's planning process flushes out anything relevant.

And the search results for a nearby plot of mud in Farmer GIles' field are hardly likely to be different from your own plot of mud.

(and strictly speaking, it is in the OP's gift to exchange - though they will of course care about whether they'll get a mortgage at completion!)

That last paragraph, whilst strictly speaking correct, is rather confusing. 

Assuming the OP needs a mortgage, he has no practical option except to hang on while the solicitor works through things. The developers know that, and they are just trying to urge things along. I expect that they have seen a really large drop in proceedable buyers, as mortgage rates have gone up a lot. Let’s face it, mortgages at 1-2% interest were practically free money. 

kizzy1926

eddddy said:

kizzy1926 said:

Having spoken to her today, she advised they are waiting for one final search relating to planning permission, once she gets these they will raise enquiries. 

The dev has said they will provide a similar search for another flat in the same build if I agree to exchange this week. 

What's the status of your mortgage application? (Assuming you need one.)

It has been approved.

kizzy1926

user1977 said:

anselld said:

It is not even in your gift to agree to exchange.  The solicitor also acts for the Mortgage Co and they will not allow corners to be cut by missing out on any important searches or enquiries.

(and strictly speaking, it is in the OP's gift to exchange - though they will of course care about whether they'll get a mortgage at completion!)

The mortgage is approved. Thanks

user1977

kizzy1926 said:

user1977 said:

anselld said:

It is not even in your gift to agree to exchange.  The solicitor also acts for the Mortgage Co and they will not allow corners to be cut by missing out on any important searches or enquiries.

(and strictly speaking, it is in the OP's gift to exchange - though they will of course care about whether they'll get a mortgage at completion!)

The mortgage is approved. Thanks

It's approved subject to the solicitor signing off on all the stuff they need to do on behalf of the lender. The lender issues an offer (usually) knowing nothing about the title, searches etc.

SMR710

You can’t exchange until the enquiries are raised and satisfied. It also takes the solicitor time to raise and send the enquiries, then time for the developer to reply, then your solicitor to review the replies. If there are further enquiries from the replies, the process goes again. 

Unfortunately, all your ducks need to be in a line before you can even set an exchange date. 

GDB2222

kizzy1926 said:

user1977 said:

anselld said:

It is not even in your gift to agree to exchange.  The solicitor also acts for the Mortgage Co and they will not allow corners to be cut by missing out on any important searches or enquiries.

(and strictly speaking, it is in the OP's gift to exchange - though they will of course care about whether they'll get a mortgage at completion!)

The mortgage is approved. Thanks

As others have said, the solicitor acts for you AND your lender. The mortgage is not really approved until the solicitor is satisfied with the property and says that to the lender.