Clause in Exchange Contracts if New Build Developer delays completion date

[PinkBubblesxx]

Hi 🙂 Just wondering if anyone could shed some advice or thoughts.....

We have sold our house, currently in the sale process with solicitors. Our buyers have sold their home to first time buyers, so the chain stops there.

We are buying a new build from a very small development of 40 properties, which we are reserving this week. The developer has said they are aiming for completion by end of October. The house isn't built yet just the foundations (as we viewed the other week) and all the essential ground access piping / cables for water, electricity etc etc has been installed.

It isn't impossible for them to build a house within 3 months as mentioned it's a small development, so focus for build will be put on ours and an opposite property which has just exchanged contracts on.

My question is to protect ourselves.....should we put clauses in our exchange of contract (which they would want in about 4-6 weeks which is normal for new builds) if they delay the completion date further than the October which they are aiming for. I'm just thinking ahead incase this has knock on effect to our buyers buyers and incase they aren't prepared to wait another month or so, or if their mortgage offer expires? Our chain is very aware of the situation we are buying a new build and want to be as transparent to the chain as possible. Luckily our buyers are super relaxed and are adamant on purchase our house which was a new build. Obviously we will keep the chain updated as with any changes in completion. But I've seen people in the past on her saying they added clauses in to new building exchange of contracts, such as if they delayed completion then money should be knocked off house price or covering for any loss of solicitor fees etc especially if the delay causes the chain to collapse.

Realistically, unless the developer is struggling to sell their properties, they would be very unlikely to agree your 'clauses'. Unfortunately new builds, especially those that are not even close to being structurally complete, notoriously overrun the 'expected' completion date. They do want exchange to take place within a certain timeframe, but completion is very likely to be on a long-stop notice. That means that the completion date can be moved backwards but not beyond the long-stop date. If the completion date goes beyond that, you can pull out without penalty, but of course that won't be acceptable to your buyer and their buyer who will have lost their mortgage offers by then.

What you should consider is that as you are the party buying the new build with an uncertain completion date, that you move out to a rental/airbnb so that the chain below you can move in on a set completion date that suits them and their lender.

Oh I didn't think of that how stupid of me 🙄 Clearly im asking for general advice, not sarcastic comments!

There's no way this will fly at the bottom end of the chain. No way. You'll have to break the chain.

We are in exactly this position but different place in the chain. . We are the bottom ( no sale, buying house A), our vendors are buying House B and their vendors are buying House C which is a new build. We have exchanged with a backstop completion date of ( eg) 20 September but the people who are buying the new build can force us all to complete earlier by giving 14 days notice. The backstop gives them 8 weeks grace on the developers estimate for when the new build will be ready, hence their ability to force an earlier completion. If their house not ready by backstop date they’ve agreed to move in with family. Basically everyone is compromising a bit but we are willing to as it’s a short chain that we all want to preserve.

Thank you! That's super helpful to know and I will most likely put something similar in place now that you have suggested. I don't want to annoy or put any of the buyers in an horrid situation esp where they are so relaxed, so we we constantly keep them updated with any change to completion and if we have to do the same with living with our parents for abit to keep the chain in tact so be it x

Still does not stop it being a totally valid point. This IS a matter for your solicitor not a bunch of randoms on the internet.

Agree with this and also the term Karen is very offensive

I already commented on this thread, but will repeat that the developer is extremely unlikely to agree your clauses.

If you want to keep your buyer then consider breaking the chain and moving to a rental/airbnb, because the developer will expect you to exchange with a long-stop completion date, which doesn't give any certainty to you or your buyer.

what a bloody horrible OP 🤢

Maybe the commenter @whichmag shouldn't try and aggravate the OP who clearly was just looking for general opinions. Not sarcasm comments! Going by their profile WhichMAG is on here daily trying to start an argument or post their insensitive comments to people

As I said looks like @whatmag has been banned now as like I mentioned looking at all their previous posts & comments they are constantly rude to people. They even had the audacity to try and beat down a poor lady posting about her sick baby yesterday! WhichMAG was a complete troll on here!

it looks like the Op has been banned given all the deletions!

indeed