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Buying a Part-exchanged House - what happens with completion date?

3 replies

Mojomarm · 03/04/2018 15:32

Have put an offer in on a property that has been part-exchanged for a new build so is actually owned by the building company behind that new house, not the occupants. Current timeline is that their new-build won't be ready until end of Sep so assuming that stays on schedule (not holding my breath), it's going to be around 6 months at best before we can complete on the house I want. It's not ideal but I'm prepared to wait until then (am moving back with parents as my house is sold) as I really like the house, the area and feel it's a good price for what I get.

Because of the 6 month wait, I'm keen to exchange asap (and developers want this too) to ensure I'm not caught out at the last moment and have a house guaranteed (as much as possible from a legal POV) to move into. However I don't want to exchange without a firm completion date and find myself in limbo if things get held up too much, or I've had to put down a deposit that I can't touch if the builder goes bust (they're nationwide firm rather than local but still can't afford to lose out like that). When I put the offer in at a price that the developer agreed with, I asked that it was conditional on the fact that I would only exchange on the understanding there was compensation for me if completion went beyond the 'anticipated date' - I assumed this would be standard practice but it's been rejected and the EA said it wasn't really something that happened in situations like this.

My solicitor is off on Easter hols at the moment so can't ask for their advice on how to best safeguard myself for a while so wondered if any Mumsnetters had prior experience of this.

OP posts:
JennyJames · 03/04/2018 16:44

I thought that when you exchanged you agreed a legally binding completion date?

Mojomarm · 03/04/2018 17:35

From what I can tell I'd only be given an 'anticipated completion date' rather than a final one in case anything with the build takes longer than planned

OP posts:
JennyJames · 03/04/2018 18:13

I’ve never heard of that... in my experience, you agree a completion date upon exchange and if this is missed, there is a potential breach of contract suit. I may be wrong, but have never heard of this type of arrangement.

Definitely get legal advice...

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