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28days to exchange on new build

(22 Posts)
SwingingFromTheChanderlier Wed 06-Apr-16 19:44:34

Not so much an Aibu as I probably should post elsewhere but this is my fav board! So I will try and turn it into one...

AIBU to ask you to explain how the 28 days to exchange on a new build property works? I am a little confused as from experience a chain and its solicitors don't generally work at this pace.

AIBU to not understand? blush

whois Wed 06-Apr-16 19:45:24

Oh, standard for new builds. Get everyone on the case sharpish!

SwingingFromTheChanderlier Wed 06-Apr-16 19:45:49

And AIBU to point out that my preferred username was already taken so yes its misspelt!

Lunar1 Wed 06-Apr-16 19:47:06

Is it the people building the house saying you have 28 days? We looked at a Barrett home once, they wanted a holding deposit which we would lose if we didn't complete within 6 weeks. We ran for the hills!

Derbyday Wed 06-Apr-16 19:49:29

They just say 28 days to chivvy you along. Mine was 6 weeks from reserving it to moving in (exchanged 1 day before completion).

frangipani13 Wed 06-Apr-16 19:50:19

Your developer will use solictors that are used to working in such a tight turnaround, you dont have the usual things like searches and complicated surveys, plus the house is ready for you to move into in theory.

Paddypaws3 Wed 06-Apr-16 20:01:19

We bought a new build and it took 4 weeks. It helped massively that we did a part exchange so no extra complications from the selling aspect. It was extremely easy smile.

StarlingMurmuration Wed 06-Apr-16 20:08:47

Our vendors had 28 days to exchange on their new build - they basically harassed us, our solicitors and the estate agents to get us to complete as fast as possible, but it still took just less than three months. If we hadn't wanted the house so much, I think we'd have told them where to stick it because they made buying very stressful.

SwingingFromTheChanderlier Wed 06-Apr-16 20:25:01

Yes developers. So if we don't exchange within 28 days do we stand to lose ££££s ? Haven't actually reserved yet so still in control! Though the expected completion date was given September time.

SquinkiesRule Wed 06-Apr-16 21:26:42

Ours took 3 months as the house wasn't finished, the builder kept saying it'll be two weeks, then two weeks more. hmm

SwingingFromTheChanderlier Wed 06-Apr-16 21:53:02

House is finished and ready. The way I understand it is that exchange goes beyond the 28days the developers reserve the right to put the property back on the open market possibly at a higher price dependant on the then current trend. We the stand to lose £250 of the £1000 reservation fee as admin charge?

Please correct me if this is it the case!

CaveMum Wed 06-Apr-16 21:55:04

We bought a new build in 2011. When it became apparent that we wouldn't complete within the 28 day limit (not our fault, our buyers were dragging their feet) the developer threatened to remarket the property. Our solicitor had words with their solicitor and basically told him to stop being an arse! We completed in 6 weeks.

FeliciaJollygoodfellow Wed 06-Apr-16 22:00:00

It differs from developer to developer, but generally, as the house is laying empty, they will put a 28 day exchange on it so they know you are serious and just put it back on the market if you don't exchange by then. It would be up to them if they charge you but £250 admin fee is fairly standard.

What's getting in the way? I have a fairly good knowledge of this as I'm working on new build property stuff at work smile.

PM if you want.

yoomoo Wed 06-Apr-16 22:01:23

Swinging, that sounds right from when we bought a new build. We 'reserved' the house for a payment of £1,000 and then had 28 days to exchange, if that didn't happen then the developer could re market the house again to someone who could proceed. In reality we did ours in 20 days (first time buyers, fast mortgage company) so it was fine but I know our developer did give a bit of leeway. If you are going to be 1-2 weeks late it's hardly worth them starting the whole process from scratch is it?
Are you in a chain? If not 28 is easily doable on a new build providing your mortgage co is quick with survey/offer and solicitor efficient!

ellesbellesxxx Wed 06-Apr-16 22:22:08

We were told 28 days but although we did everything we needed to do straight away, it took a couple of weeks longer. However, we used their mortgage guy and their solicitor so they were happy with the progress, understood it took longer.

SwingingFromTheChanderlier Wed 06-Apr-16 22:22:52

Chain not formed yet although in our area should 'sell' by the weekend. We will make sure they are in a position to move fast! The developer sales assistant indicated an August/Sept completion though? Here's crossing fingers it all goes smoothly!

Thanks Felicia I might take you up on that offer! smile

unimaginative1979 Wed 06-Apr-16 22:27:37

We are in the same boat. We've reserved but we've been told 28 days from mortgage being finalised?

We were also told today they are aware people have other commitments ie we currently rent and needs to give 1 months notice.

yoomoo Wed 06-Apr-16 22:39:33

That sounds like a better way to do it 1979 friends of ours completely missed the 28 day deadline due to mortgage company not being able to do the survey for 5 weeks!

sweetbabyray Wed 06-Apr-16 23:01:54

Our new build said 28 days too, it took longer because of searches (we live in what used to be an undustrial area and the mortgage lender were hand-wringing over an old mine shaft near by, but they are literally everywhere) and solictors etc. The sales office guy said that he opens quite a lot and as long as they know we are ding all of the necessary things to progress, it's fine. We reserved in Jan when the house was almost finished, and got the keys end of March.

ManneryTowers Wed 06-Apr-16 23:19:44

Contrary to a PP's comment I promise you that you will need searches on a new build hmm
28 days to exchange (which will be from receipt by your lawyer of the draft contract and not from date the sale was agreed by the way) is a standard developer condition. You will only lose your reservation deposit if you don't complete (unless your reservation agreement isn't compliant in its terms).
All this talk of deadlines at the very start of a transaction is just to panic buyers to thinking they must keep the pressure up. If you go over 28 days but are nearing exchange no developer is going to pull the rug and start all over again with a new buyer. Just make sure you respond to your lawyer when they ask you for things and don't choose the cheapest one you can find.
Don't let agents pressure you either. Listen to what your lawyer tells you, not to an agent with a vested interest (i.e not yours!) and with probably very little knowledge of the legal process of conveyancing.

Rdoo Wed 06-Apr-16 23:37:12

Why are they saying an August/September completion if the property is ready? It doesn't sound like the property is ready.

Developers generally always put a 28 day deadline in place but generally don't pull the plug as long as they see movement and progress in the transaction.

SwingingFromTheChanderlier Wed 06-Apr-16 23:53:26

Thank you for all your assurances! Puts my mind at rest. I think the PP who mentioned something about searches was referring to them already being available as new builds.

The house is most certainly ready as we have viewed it! Not quite sure why completion is Aug/Sept, although in no rush our end although we don't want to lose it! I guess they know things don't always go to plan....

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