new build - optional extras liability?

smoothound54

Hi folks - I tried to search for these topics without success - please point me if this has been discussed already - thanks

I am about to sign off the optional extras for a new-build property still 2-3 months form completion. It has reached joists/start of second floor build stage. The options will be a considerable commitment up front and before exchange of contracts etc - I feel exposed to risk.   There is still uncertainty for my own house sale - it could conceivably fall through - and after I have specified the extras and committed to them - This would leave me without the means to buy the house and with a considerable investment in options etc in a house I will never own.

They tell me I don't need to commit to carpets etc yet (they are actually competitive on carpets I have checked) - but want commitment for electrical and tiling optional extras now.

I can understand the need to commit to the electrical options (downstairs stud walls are going in now upstairs soon) - but I would have thought tiling does not come until much later on - i.e. after plaster has been fitted and before skirting (for floor tiles)  - the house has not got a second floor yet let alone a roof.

Questions......   

• Does it seems reasonable to ask me to commit to tiling options before the roof is on (or even before there are second floor walls)??
• Will I be liable to pay for the extras if I am forced to drop out of the purchase - even if they some have not been fitted yet?  i.e. Have I protection under Section 75 of the Consumer Credit Act? and can I get my money returned if I pull out of the purchase?

Many thanks in advance folks

theartfullodger

What does the contract (or terms & conditions you have agreed) state on the matter.  Can't read it from here: Should cover the matter, if not start worrying even more than before...

GDB2222

Good heavens! You don't even know whether you can buy this house, as the purchase depends on your selling your own house. How can you possibly even be considering paying for extras at this stage? You have spotted the problem, and now you need to make the obvious decision not to pay a penny extra at this stage.

You really need to think about whether you would still want the house without the extras. Faced with the possibility of the sale falling through, it's entirely possible that the developer will build in at least some of the extras you want at his own risk. Obviously, the risk depends on what extras you have chosen. A few extra power points would not be a problem, but very individual tiling probably would be.

smoothound54

My original completion date was a month ago..... the buyers have kept delaying and stringing me along - not their fault - but to re-list on the market would set me back 3 months at least. .- my whole purchase would die.

It looks like (in past couple of days) finally all issues on my sale are more or less resolved  (allegedly) - but it could take a week or so to complete - so perhaps next week.   I have about 80% confidence in that  - so a 20% chance it will fall through or be further delayed.  Just a series of bad luck events.

I can afford all the options outright - but it would still be a considerable pain if I lose the money.

I have to decide and commit to the options this weekend. I am prepared to choose no options - or to walk away  - or perhaps take the risk on a reduced set of options - to reduce my cash exposure....

But the ideal solution would be if I can commit to all options and be protected under Section 75 and could claim my cash back of it falls through (unlikely but possible)

hence my 2 questions.......    

Isn't it too early to be forced to choose tiling?  (a building question) 

can I force the builder to repay my options money if I am forced to walk away under section 75 (a finance/regulation question).

It's a mess - but not of my making.

eddddy

smoothound54 said:

• Will I be liable to pay for the extras if I am forced to drop out of the purchase - even if they some have not been fitted yet?  i.e. Have I protection under Section 75 of the Consumer Credit Act? and can I get my money returned if I pull out of the purchase?

Section 75 of the consumer credit act would make the credit card company jointly liable for any breach of contract (or misrepresentation) by the developer.

If you decide to pull out, that isn't a breach of contract by the developer.

So section 75 wouldn't help you.

GDB2222

I agree. S75 is a red herring.

You need to agree something sensible with the developer that works for you. Personally, I would not pay anything for extras at this stage. 

smoothound54

Thanks guys - that is what I needed to know -

FYI not to pay for extras this weekend means I won't get any - and will have to rip walls apart to retrofit - but thanks for answers - they help a lot.

Section62

smoothound54 said:

hence my 2 questions.......    

Isn't it too early to be forced to choose tiling?  (a building question) 

The builder will need to order materials, and to get the best price will bulk jobs together.  The supply chain for building materials is still disrupted post-covid and the energy crisis is still impacting the cost of materials which are energy intensive (that includes tiles).

Given the hassle and potential costs the developer will have if they cannot procure the tiles you want and have them delivered to site on (or before) the date they need the tiler to fix them on the walls, then it is understandable the developer will want decisions made as early as possible.

In my experience it isn't uncommon for a builder to want decisions on tiling to be made around the start of second-floor level.

But whether it is too early for you to be expected to make the decision is a contractual matter, not a building question.  The builder can set whatever deadline they wish in the contract for such decisions to be made - your opportunity to object to the timescales come before you sign the contract, unless the contract specifies otherwise.

If the builder has some slack between the decision date and the critical path date then that is to their advantage and they aren't under any obligation to give you more time.

[Deleted User]

This just illustrates how stupid the system we have for new builds is. In other countries you agree what you are buying up front, get the mortgage in place, and they build it to that specification. If it's not right then it's breech of contract and the builder's problem to fix. The contact sets out clearly what quality is expected.

It also helps that they pre-fab a lot of it, which reduces costs and allows for customisation. For some reason people in the UK seem to think pre-fab is bad, but it's by far the best way of building houses.

Postik

[Deleted User] said:

This just illustrates how stupid the system we have for new builds is. In other countries you agree what you are buying up front, get the mortgage in place, and they build it to that specification. If it's not right then it's breech of contract and the builder's problem to fix. The contact sets out clearly what quality is expected.

It also helps that they pre-fab a lot of it, which reduces costs and allows for customisation. For some reason people in the UK seem to think pre-fab is bad, but it's by far the best way of building houses.

I agree.  I've read many horror stories on Trust Pilot where someone's sale falls through, and the developer doesn't even give them even a week to find a new buyer.  Instead they pocket the money paid in extras, and then put the house back up for sale often at an increased price.

smoothound54

As it happens (touching wood) - the issue may well be resolved - my buyer has formally confirmed they wish to change and complete next week - solely subject to 2 documents my solicitor will send to them by COP this week - So that raises my confidence level to 95% - So on balance I will sign up to the options on Sunday at my risk.