Fee for not exchanging on time

Rooksx

I'm negotiating the purchase of a new build flat. The developer is pushing me to use their recommended solicitor and broker. I'm resisting this because I had an offer agreed for another flat so had instructed a solicitor and received a mortgage offer. Unfortunately that purchase has got stuck.

The developer wants a reservation fee upfront, and will take the property off the market once that's paid. I understand that's fairly standard. They then want to exchange within 28 days of receipt of draft contracts. If we don't for whatever reason and I haven't used their recommended solicitor, I'll have to pay a £900 fee for what the offer document describes as "aborted legal costs". The property will then go back on the market. 

I don't like the sound of this at all. An exchange deadline is typical, but is this fee for missing the deadline standard? It feels like they're putting pressure on me to move quickly. I told the developer that 28 days seems like a tight turnaround and that while 'm keen to move quickly, it's more important that my solicitor receives satisfactory responses to their queries. Their response was that the sale of all other flats in the building had exchanged in 28 days.

Any opinions or experience of a seller pushing like this and insisting on a fee for not exchanging by a deadline would be much appreciated, thanks. 

gwynlas

The developer can ask for what they want and they normally like to tie up saleas asap but they still expect a long completion date. It is up to you to decide if you want to  ask your solicitor to work towards a 28 day exchange. I would not accept that you have to use their preferred conveyancer and broker. Given how slow the market appears to be in most areas I would think they would be happy to sell under any circumstances.

Rooksx

Thanks. It's this feeling for not exchanging within time which is making me particularly weary. I don't think this is market standard.

Rooksx

I mean the fee is making me wary, yeesh.

propertyrental

Just say no. They'll still want to sell to you......

Nearlyold

As propertyrental says just tell them those terms are not acceptable and play it from there. 

Albermarle

Rooksx said:

I mean the fee is making me wary, yeesh.

It is only  an opening gambit of a negotiation.

eddddy

The developer has stated some terms that they would like you to agree to. (e.g. 28 day exchange limit, £900 fee etc)

You can also state some terms that you want the developer to agree to (e.g. No 28 day exchange limit, No fee, etc)

• If you can negotiate and agree a set of terms, you and the developer can go ahead with a contract,

• If you can't agree a set of terms, you and the developer can't go ahead with a contract.

Things that might influence the outcome include...

• You might be more (or less) flexible on contract terms than the developer.
• You might be better (or worse) at negotiating than the developer
• You might want the house more (or less) than the developer wants you as a buyer