Page 2 | Vendor is buying a new build

Al991 · 2023-04-27T13:04:13+00:00

We have had an offer accepted on a house. Vendor is buying a new build and gave us a 3 month window for completion of their new property, therefore our move in date. I was willing to go ahead with this as I thought that they would be able to give us a date nearer the time, say in a couple of months, of completion. Vendor now says they want to exchange in 1 month to 6 weeks, but when I asked if they would have a completion date by then they just said talk to your solicitor. I’m concerned that the contract is going to have no completion date on it. I’m pregnant and going on maternity leave eventually, so we could lose our mortgage if the offer expires before completion. Has anyone had experience of this situation? Were you pressured to exchange contracts with no completion date? I will talk to my solicitor but concerned about whether they will try to pressure us into signing a vague contract. I could lose my life savings if mortgage offer the expires and they won’t give us a new one because I’m on Mat.

Original poster

Al991 · 28/04/2023 16:11

@updin i hear you, from my point of view I would rather risk them pulling out than take on the risk of exchanging without a long stop date which is within mortgage offer

OP posts:

Josephi · 29/04/2023 19:53

We were buying part exchange property. Builder wanted to exchange in a month, and then completion on notice, big NO to long stop date. Our solicitor advised strongly against it, and we decided not to proceed. Fast forward, in two month, house still on the market, this time they had completion date, so we exchanged. I wouldn’t buy without at least a long stop date, you could lose deposit and other costs.

Original poster

Al991 · 01/05/2023 15:50

Josephi · 29/04/2023 19:53

We were buying part exchange property. Builder wanted to exchange in a month, and then completion on notice, big NO to long stop date. Our solicitor advised strongly against it, and we decided not to proceed. Fast forward, in two month, house still on the market, this time they had completion date, so we exchanged. I wouldn’t buy without at least a long stop date, you could lose deposit and other costs.

That’s funny about it still being on the market and you exchanging in the end! Yeah we’ve made our decision - long stop date or no deal basically. Not asking to complete straight away but I’m not exchanging on notice. Thank you for sharing your experience.

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NotCopingWell1 · 01/05/2023 15:54

We had this six years ago. Builder (Bellway) refused a long stop date. Our buyer was impatient, deal collapsed. Managed to get the deal back together but part of that agreement was for our vendor to move out before their newbuild completed. If they hadn't done so we wouldn't have proceeded. The builders really didn't give a shit though, but the vendors were at risk of losing a few grand on extras and flooring because we hadn't exchanged by X and so on.

It's crap when someone in the chain wants a new build, in mt experience. Good luck!

Bafflingpineapplecow · 02/05/2023 10:50

Bit of a late response to this OP but we are the buyers in the same situation (even down to being pregnant) - we got our solicitor to put a clause in that if completion does not happen by x date they will have to vacate the property even if their new built is not ready. The risk is too high otherwise as you never know when the new built will be complete. Long gaps between exchange and completion are fine as long as there is a completion date at the end, even if it means the vendor needs to shift.

Original poster

Al991 · 03/05/2023 17:53

Bafflingpineapplecow · 02/05/2023 10:50

Bit of a late response to this OP but we are the buyers in the same situation (even down to being pregnant) - we got our solicitor to put a clause in that if completion does not happen by x date they will have to vacate the property even if their new built is not ready. The risk is too high otherwise as you never know when the new built will be complete. Long gaps between exchange and completion are fine as long as there is a completion date at the end, even if it means the vendor needs to shift.

Thanks @Bafflingpineapplecow i agree with you. Happy to have long gap and mortgage lender is lenient with mat leave etc so that would probably be fine, but we’ve got to have some sort of date or we’re just setting ourselves up to be messed about. Will be asking my solicitor to do similar

OP posts:

Bafflingpineapplecow · 03/05/2023 18:54

It is frustrating and I feel you. We've been holding our breath to see if the seller agrees to it so I wish you all the best of luck! Just beware, initially our solicitor and the vendors EA tried to discourage us on it to get the exchange on notice through but we stood firm on that one. Just if they try to tell you "seller will never agree to it" then be prepared to tell them you'll pull out if not and follow through if they do refuse. With the long stop also comes a clause that should seller fail to complete by the completion date stated on contract all deposit is refundable.

Original poster

Al991 · 08/05/2023 08:18

Bafflingpineapplecow · 03/05/2023 18:54

It is frustrating and I feel you. We've been holding our breath to see if the seller agrees to it so I wish you all the best of luck! Just beware, initially our solicitor and the vendors EA tried to discourage us on it to get the exchange on notice through but we stood firm on that one. Just if they try to tell you "seller will never agree to it" then be prepared to tell them you'll pull out if not and follow through if they do refuse. With the long stop also comes a clause that should seller fail to complete by the completion date stated on contract all deposit is refundable.

The estate agent is the worst of the lot! Seller being very reasonable but I can imagine more trouble coming from the EA before this is done… they initially told us they wanted to exchange in 6 weeks and made it seem like this was coming from the seller, then changed to 4 weeks (we don’t even have our mortgage offer yet we’re waiting for the valuation lol!). I ended up speaking to the seller in person and he had no idea why they had done this. They’re not looking out for either of us.

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Pianogirl1994 · 16/05/2024 18:34

We are going through the right now as well! The developers are insisting on exchanging quickly, our solicitors aren’t happy with the terms being put through by the developers (that our sellers are being made to agree to) and neither side is willing to budge…I’m starting to worry that someone will pull out as we’ve come so far and are pretty much there! (As in, we’ve paid our deposit and got home insurance). But on the other hand, I know our solicitors are fighting for a fair deal for us and refuse to exchange without a completion date. Fingers crossed it works out…!