New build purchase - rigidity over completion date

[CarrotyO]

The top of our chain is purchasing a new-build property. They are being really rigid over the date of completion, they want completion to go through on a certain date which is fast approaching, and are exerting lots of pressure down the chain. The trouble is that the bottom of the chain has outstanding buyer enquiries which are yet to be resolved.

They are so fixed on this particular date that it looks like if buyer enquiries are resolved they would want to exchange and complete very close together, potentially same day if it comes to it.

This is starting to feel a bit worrying as, for example, we can't book removals etc when we are uncertain of the date. What if it suddenly goes ahead on this date and we can't book removals in time?

Does anyone know why it is that a new build purchase would be so rigid with the sale having to happen on a certain date? Is it possible that the whole chain could fall through if it doesn't happen on this date (for example if buyer enquiries further down the chain aren't resolved by then)?

It’s possible that the developer has given additional incentives to the buyer to hit a deadline - perhaps a month or quarter end - for their targets, but it’d be unusual for a quarter end to be January. Perhaps they originally promised they’d complete by the end of the year, and are already late?

It's likely pressure from the developers. They are very rigid on completion dates.

So there is often one 'bullying' person in the chain. Yes they might have been offered incentives. But this is really their issue. If the other people in the chain cannot exchange and complete then they cant and if this buyer pushes too hard the whole chain could collapse.

I had a month between exchange and completion on our house because I didnt want to be let down at the last moment. Removers loved me because I could book them knowing I was moving rather than having lots of pencilled in dates which some removers are now charging for because people often mess them around, dont tell them what is happening etc.

Couldnt these buyers explain to their builders what is happening? Most developers just like to hear that everythjng is moving and do understand that buying and selling isnt easy. Whether the incentives will still be on offfer if they comoplete in Feb is another matter but its worth asking.

All I would say is when it happened to a friend is that there will always be removers who will be able to move you. However expect to pay for it...

Developers are very firm about completion dates.

Thanks. Looks like having a new build in the chain is a bit of a red flag that I wasn't aware of then.

Couldnt these buyers explain to their builders what is happening? Most developers just like to hear that everythjng is moving and do understand that buying and selling isnt easy.

This is the message I have given to go up the chain, I think they need to accept that the bottom of the chain isn't ready and it needs to be worked through.

I feel nervous about being pushed into a really short time between exchange and completion. And like we are all being put under pressure so the top of the chain can get their incentives (which I presume is some money knocked off the sale price?)

Just wanted to make the point @CarrotyO that all the people in the chain have to agree the date for Exchange and Completion so don't let yourself be pressurised to agree to something you're not ok with.

Thanks. Can I say something like "I want a period of 2 weeks between exchange and completion"? So whenever we are ready to exchange, I know we will have two weeks to complete?

Is there a risk that the top of the chain will lose their purchase if they can't do it by the date the developers want?

Why do you need a gap between exchange and completion? Many are done the same day these days

yes the developer will want the buyer to exchange now, with a completion date set in the exchange contracts - if the buyer don’t exchange the developer can (and often will) remarket the property

I can't say if there is a risk re the top of the chain losing their purchase if they can't complete by a certain date. It sounds very unlikely because if the developers lose them they will be back to square one with someone else. But I don't actually know so don't want to say for sure.

But you absolutely can say that you want 2 weeks between exchange & completion, that is a reasonable thing to say to your solicitor and to your EA and they will tell everyone else in the chain. However, if other people in the chain are unhappy as they think that 2 weeks is too long, I personally would be prepared to compromise on making it 1 week or 10 days between exchange & completion. Just don't agree to simultaneous exchange & completion, I've done that in the past and it's too stressful.

We purchased a new build recently so this is our experience (we bought from a major developer, not all developers are the same, my personal experience only etc etc).

The developer said it was rigid about the exchange date but not completion date. It wanted us to exchange within 6 weeks (!) of offer but wasn't worried about then having an extended completion.

In reality, the developer just wanted to know that we were on top of things and that everything kept moving. So the 6 weeks actually wasn't firm and they were happy as long as we kept everything moving.

I would therefore be somewhat sceptical that the people at the top of the chain are being pressured by the developers to complete at a certain point. Once it's exchanged and they can be sure of getting the money, the developer doesn't mind when you move in.

So I think I would push back on that and ask more questions about why that date is so important. If the people at the bottom haven't finished their enquiries, they aren't going to exchange no matter how much the people at the top jump up and down!!

You risk everything collapsing

Yes exchange and completion on the same day is a nightmare - you may be able to provisionally book a removal company - worth sounding them out

For goodness sake dont exchange and complete on the same day. Just DONT!

You could find you are all packed on Wed ready to exchange and complete on Thur to have one of the chain pull out or worse someone in the chain offering less than price has been agreed because they know people are exchanging and completing on the same day.

As @Twiglets1 says you absolutely can go back and say that you want 2 weeks between exchange and completion. As I said before, the chain isn't ready as it stands.

The developer won't want to lose the sale at this stage, particularly given the current state of the housing market.

And yes, as someone else suggested, it's worth ringing removals firms, explaining the situation and getting in their radar. Our removals gave us first refusal on a couple of dates.

You can ask but more than a week is unusual. We exchanged and completed on the same day

It really isn’t unusual to have more than a week between exchange and completion.

It isn’t unusual to have a gap for the reasons listed above

Agreed. The usual gap used to be 4 weeks but these days the gap tends to be less, normally 2-4 weeks.

Thanks all, that's really helpful.

I had a similar situation once. Pressure from the developer as it was quarter end. My buyer went on holiday a week before we were due to exchange & complete. The developer part exchanged the house I was buying with the one I was selling and we had to do all the paperwork in that week - not fun for my solicitor! My (now former) buyer was left high & dry but they'd known the completion date all along, so it was a bit stupid of them to go on holiday!

It could also be the top chain vendors mortgage situation, an extended offer expiration for example if the property has been behind schedule to be finished ? As others point out developers are not generally worried about completion dates -but will be very firm on exchange. An already extended mortgage offer however will definitely have a "must complete by date" that they need to stick to as unlikely to get a second extension.

I got a little more info.

The builders/developers have set the date. Apparently if they are unable to exchange on x date, and the builders don’t consent to an extension, they will lose their deposit.

Given that, it seems like if we can, fingers crossed, exchange by the date proposed by the developers, we can have a bit of breathing space between that date and completion. So I'm not sure why they are saying 'we need to complete by x date', rather than 'we need to exchange by x date'.

Sounds like they were only part telling the truth. They are under pressure re the Exchange date but not the Completion date so stick to your guns and tell everyone concerned that you need 2 weeks between them to organise removals etc.

We had four weeks between exchange and completion. After exchange we largely relaxed and felt 99% certain all would proceed and had plenty of time to get organised. I wouldn’t dream of agreeing to exchange and completion on the same day - anything under two weeks would probably be out of the question unless I was absolutely powerless within the chain for some reason and had to agree to anything.