Sellers new build not being worked on until we exchange!

puggy21cuddle21

We are first time buyers and the people selling the house are going in to a new build 

This was supposed to be ready this month, so we have been getting ready to move in this month... only to be told that work on their new house has stopped until we exchange contracts! We had no inkling this was going to happen nothing was ever said about time constraints 

The issue is, I have 90 days to complete when my LISA funds land (requested 2 days ago) and my parents are separating and selling their house so we need to move! 

What do we do? We really like the house but I can't be dealing with the uncertainty - my partners work makes it hard to be able to complete with notice 

We could put a long stop date to 90 days time but then what if the house still isn't ready?! We just try and find a new house? 

kingstreet

It's normal for a builder to only fit a newbuild to the purchaser's spec after exchange of contracts. Before that, they risk a pull-out and being left with a house to sell to someone else's taste. I'm surprised you weren't told as the exchange target date would be on your vendor's reservation.

Herzlos

I'd make it clear via your solicitor that you need to complete by <date> and ask what contingencies they have regarding their new build not being ready by then.

It seems odd that work has stopped, but I wonder if they just need some assurance of payment from the contract exchange in order to finish the work.

puggy21cuddle21

Oh yes we understand why the builder is holding off, they’re risking money if they put all their fittings in then they pull out
we were never told a target date or anything, we were just told “They’ve stopped work until you’ve exchanged” so as FTB we are left feeling a little blind sighted

In your opinion - Would we be best exchanging with a long stop completion date or negotiating a fixed completion date and asking the sellers to move in with family if their new build is not ready  

Olinda99

Exchanging is not the problem - what you need to focus on is what is the completion date they are suggesting when you exchange

does this fit in with your plans?

Hoenir

Has the vendor exchanged contracts on the new build?  The developer will focus their attention on properties which have exchanged and are definatively heading towards completion. Which results in the developer getting paid. 

eddddy

puggy21cuddle21 said:

In your opinion - Would we be best exchanging with a long stop completion date or negotiating a fixed completion date and asking the sellers to move in with family if their new build is not ready  

You can try to get the sellers to agree to a fixed completion date - or relatively early long stop date.

But at the same time, the seller will probably try to get you to agree to completion on notice with a much later long stop date.


So it then becomes a case of...

• Who is the better negotiator - you or the seller?
• Who is better at bluffing?
• Who is more desperate for the deal to go ahead?
• Who can hold their nerve longer?

You could say that it then becomes a game of 'chicken' or 'who blinks first'.


If, for example, you say you'll walk away if you don't get the terms you want - that would probably mean your seller could lose their newbuild - the developer would probably put it back on the market. So that possibility might strengthen your negotiating position. But who knows?