snaggin', completion and interest charges

Tazz T

So here's the story. We're buying a new house. Completion date was in October, but due to delays at the builders end, we only did the 1st snag in November. The place was a disaster area (not really ready for snagging) so it was over a month before we could do a second snag. That was a couple of weeks ago. There was still a good 4 pages of snags (some quite major). Yesterday we get notice that the house is finished and completion must happen today or else we'll be charged interest daily (on well over 1/2 a million).

Now we haven't got to check the 2nd snag or check the heating as the gas hadn't been commissioned in the last snag. And there are a couple of other important items that need checking.

Our solictor says these are 'aesthetic' and has advised us to complete. Obviously it's not very considerate for the developer to pressure us into completion just before Xmas (no chance of getting flooring installed never mind removals) but he seems more interested in getting his money before the end of the builders financial year (this week). So do they have a leg to stand on when it comes to charging interest. Has anybody else experienced this and what was the outcome?

Obviously, we'd like to complete at the beginning of next year so we have a change to make sure the property is finished. Regardless of that, we're going to be abroad (my partner has already left) over Xmas. Anybody else's experience would be appreciated.

Personally I'd like to tell the buider to shag off as they have not given us reasonable notice for completion, but obviously I have to take on board what the solicitor says.

Victor

Tazz T wrote:

Our solictor says these are 'aesthetic' and has advised us to complete.

Not having heating is not 'aesthetic', its material. Can your snagger check it this week?

Interest will be dealt with in the contract.

Your solicitor also wants his cheque.

Lex Luthor

normally the builders can force you to close on only minor issues remaining to be completed on the snag.

I would say the heating is a major one at this time of the year, so I would hold back. It will push them to have it completed.

If the gas has been commissioned and this is the only major item outstanding, then I would try your best to get it checked today. Your solicitor will probably not be in a position to do any closings on Friday this week, so to have a chance on Thursday to get it signed, you will probably want to give them notice before end of today.

I did a snag on my place back in October and I am still waiting on a few items to be completed. The major 2 being the wrong windows were installed at ground level as they weren't fire escape type and there was no ventilation provided for in any of the bedrooms. They even had the balls to issue us with a Cert of Compliance prior to the Oct date..it now looks like we'll have to wait until new year to take ownership but I'm not in a rush over major items like this.

Tazz T

Neither our architect or our snagger can make it to the house before Friday, so we're in no position to see the gas working or any of the other issues we wanted completed.

We've instructed our solicitor not to complete. The builder reckons this decision will cost us 2k in interest.

Tazz T

Just an update on this after our 'ultimatum'.

The developer says he won't charge interest as long as we close in the first week of Jan. So he probably was using the interest clause as a way of pressurising us to close before completing the snag.

Handy to know if you're in the same situation.

ats

Tazz T wrote:

Just an update on this after our 'ultimatum'.

The developer says he won't charge interest as long as we close in the first week of Jan. So he probably was using the interest clause as a way of pressurising us to close before completing the snag.

Handy to know if you're in the same situation.

was reading this thread and came to teh same conclusion. AFAIK if you provisde them with a snag they cant say "its fixed you must complete today" you have to be allowed sufficient time to visit and resnag. like you said they just wanted to get money before year end. in all likelyhood teh site foreman gets a nice xmas bonus for every unit completed by year end and he was looking forward to this. as for your solicitor heating not working seems major to me i'd be questioning my solicitor on why they waht you to close with this outstanding. would they happen to be a panel solicitor recommended by the estate agent?

The builder does not have to complete a snag list. In fact, there is no mention of the phrase 'snag list' in the standard Law Society/CIF building agreement (2001 Edition). HOWEVER, they do clearly set out that 'the Contractor has agreed to...carry out the works in accordance with the Plans' (and 'Plans' includes specs) so check if there is anything in those documents which is incomplete, rather than what your engineer says. The building agreement goes on to state that the contractor will 'build and completely finish in a good substantial and workmanlike manner' the works and will 'make same fit for habitation', and I would imagine that no heatingmakes a place unfit for habitation...