How do new build reservation fees work?

user1977

Albermarle said:

When you exchange contracts, normally you fix a completion date at the same time. That must be difficult with a property that is not built yet, with all the potential delays etc.?

Yes, which is why it's never done that way. The contract will say that completion is [x] days after the property is signed off as complete. You may need to haggle about what parameters there are around that e.g. you don't want to be still bound into the contract after your mortgage offer has expired, so generally there will be a longstop date at which point the buyer is entitled to pull out.

And also why it's a bad idea for a buyer to try to get into a chain with their buyer, as every other contract would need to reflect your completion being on notice, and other parties won't be keen to be tied into the construction timescales of your builder just because you're getting a shiny new house. Easier to sell first (or do part-exchange with the developer).