New Build Part Exchange - Moving the goalsposts

gv1977

Hi All.

This is our first time buying a new build and part exchanging.  We thought it would be much more straightforward than selling and buying in the traditional way, this is not proving to be the case.  Wondering if there are any experts out there who can advise if what the developers are proposing would go against the terms and conditions of a part ex?

It would appear that they are trying to move us from a part ex to something more akin to an assisted move.  Originally we agreed to the part exchange on the basis that the developer would be our direct buyer, and completion would be on or before a set date.  Nowhere in the terms and conditions, or when speaking to the sales representative, did it specify that we must wait until 'at least exchange' on our property.  They have now stated that after they have surveyed our house there are factors that mean they will only part exchange with us once exchange has been done between them and a buyer of our house.  They are not supplying us with a copy of this survey.

There was no prior mention that we would need to wait for a third-party buyer. Our understanding, based on the part exchange agreement, was that the developer would purchase our property directly, facilitating a quicker and more straightforward transaction. We are now uncertain how the developer can accept an offer on our current property without owning it if we are in fact now not in a part exchange contract. We need clarification on how this situation still constitutes a part exchange contract under these conditions.

To gain further insight, we have consulted with a several other developers regarding their part exchange processes. All have confirmed that under a traditional part exchange contract, there would be no requirement to wait for the buyer to complete. This standard contrasts sharply with our current experience, causing additional confusion and concern.

This situation contradicts the marketing message of a hassle-free and quick transaction.

Up until last week, we felt like valued customers. However, after a difficult phone call, we received no written guidance on the process going forward, just a decision that it will be reviewed in two weeks. When we later raised questions through our solicitor we received a one-line response: "If they wish to withdraw, they can".  This response hardly made us feel valued and further raised a red flag about continuing with this company.

We have signed an agreement for part exchange. Should a survey have been done before an offer was made on our house rather than now days before the completion date? 

What I need to establish is:
1. Should they have to honour the agreement of the part exchange and complete within the next few weeks 
or
2. If they do not wish to honour the agreement, reimburse the reservation fee and the monies I have spent on solicitors fees so far, as they are making the decision to not continue with the sale and purchase as agreed in the part exchange contract I signed.

There has been an offer made on our property this morning, but I am conscious this could still lead to many extra weeks of waiting under their new stance.

Thank you in advance for any advice anyone can give, apologies for the rambling post.  I have tried to find answers myself through the internet, but seemingly a query like tis has never come up before!

user1977

I don't think any of us can offer particularly useful advice without seeing the terms of the agreement (which presumably you can!). It's not the sort of thing where there are overriding consumer rights.

RelievedSheff

What did you sign up too?

Read the terms of the contract you have signed!

gv1977

There is nothing in the T&Cs regarding having to wait for our house to exchange, the only thing mentioned is that they can renegotiate the price following the survey, which they have not done.  I don't have legal knowledge of part exchange; can they legally accept an offer on our property if they haven't part exchanged?  It does mention on the T&Cs that we are liable to pay 2% of the house price sale if we pull out once a sale has been agreed, I get the feeling they are trying to take us down this route.  If this is no longer a part exchange is that them changing T&Cs, and if so should we insist on having new T&Cs, we have had no formal communication, only a very brief phone call.

BonaDea

Out of interest, what's the name of the developer?

saajan_12

gv1977 said:

There is nothing in the T&Cs regarding having to wait for our house to exchange, the only thing mentioned is that they can renegotiate the price following the survey, which they have not done.  I don't have legal knowledge of part exchange; can they legally accept an offer on our property if they haven't part exchanged?  It does mention on the T&Cs that we are liable to pay 2% of the house price sale if we pull out once a sale has been agreed, I get the feeling they are trying to take us down this route.  If this is no longer a part exchange is that them changing T&Cs, and if so should we insist on having new T&Cs, we have had no formal communication, only a very brief phone call.

Need the full terms, as "nothing in the T&Cs regarding having to wait" for X isn't the same as "will proceed before" X. The timing could all be at their option, in which case they can choose to wait forever. That would be poor terms for you, but terms you signed up to nevertheless.

Can you put your house on the market yourself and exchange in a chain as usual? Depends on the T&Cs if there are any time limits though. 

chanz4

we were going to px with st modewns, knightmare glad pulled out

gv1977

saajan_12 said:

gv1977 said:

There is nothing in the T&Cs regarding having to wait for our house to exchange, the only thing mentioned is that they can renegotiate the price following the survey, which they have not done.  I don't have legal knowledge of part exchange; can they legally accept an offer on our property if they haven't part exchanged?  It does mention on the T&Cs that we are liable to pay 2% of the house price sale if we pull out once a sale has been agreed, I get the feeling they are trying to take us down this route.  If this is no longer a part exchange is that them changing T&Cs, and if so should we insist on having new T&Cs, we have had no formal communication, only a very brief phone call.

Need the full terms, as "nothing in the T&Cs regarding having to wait" for X isn't the same as "will proceed before" X. The timing could all be at their option, in which case they can choose to wait forever. That would be poor terms for you, but terms you signed up to nevertheless.

Can you put your house on the market yourself and exchange in a chain as usual? Depends on the T&Cs if there are any time limits though. 

Can't seem to put a screen clip in her, but the document we signed stated:
Price remains valid until: 23/06/2024
Reservation date: 12/05/2024
Contract to be exchanged by: 23/06/2024
Reservation expiry date: left blank
We have completed everything required our side, but the developer has said we could not complete by that date and following receiving the survey would need to wait until our house has exchanged before we could exchange.

martindow

What does your solicitor/ conveyancer have to say about this?  I would seek their advice - hopefully they are not ones recommended by the developer and will have your interests in mind.

user1977

martindow said:

What does your solicitor/ conveyancer have to say about this?  I would seek their advice - hopefully they are not ones recommended by the developer and will have your interests in mind.

They've already given advice (see the OP), presumably having seen the contract. We still haven't, so we still cannot give useful advice to the OP other than by guesswork.

gv1977

martindow said:

What does your solicitor/ conveyancer have to say about this?  I would seek their advice - hopefully they are not ones recommended by the developer and will have your interests in mind.

Unfortunately we went with the ones recommended by the developer, regretting that now as they are definitely aligned with each other