First time buyer- contract concerns

bobajob81

Hi all,

We have recently received contracts for the purchase of a house in a new development. The vendors solicitor is unwilling to change some terms which our solicitor is unhappy with. They are refusing to input the standard law society recommendation clause of “ subject to loan approval “.
On top of this they are not agreeing to amend the completion period from 24 months to 12 months. Our solicitor is not happy for us to sign on this basis given that we were initially given a completion date of 9 months back in March of this year. Has anyone else had any experience of this or similar ? We are really excited about purchasing this property as our first home but at the same time we don’t want to leave ourselves exposed.

As first time buyers we are totally new to this and this has thrown us a bit- so any advice would be greatly appreciated.

Many thanks,

B

Paulw

Sounds like your solicitor is doing their job and already giving you the best advice possible.

PedroDublin

Worst case scenario in two years time your situation will be different, you won't be able to get a mortgage and you will lose the deposit.

On the other hand, as months pass by your financial situation should improve, more savings, cleaner financials etc...

Is about whether you are willing to take the risk, I would definitely push to get that included on the contract

bobajob81

Thank you both Paul and Pedro.
We know that our solicitors advice is sound but can't get our heads around why they are unwilling to insert these conditions(considering we already have our approval) and also the fact that we cannot find anyone who has had similar concerns.
I understand the vendor needs to protect themselves but to offer zero protection for the buyer seems very strange IMO.

I would think this should be a serious concern for anyone purchasing with in a new development/from plans and would love to hear from anyone who was/is in a similar position to myself.

Thanks again,
B

spaceHopper

Listen to your solicitor, also get a clause of them having good title inserted.

Suppose you both lose you job or for some reason can't get life cover you can get the loan, or if the market tanks and the house is not worth what you offered and then bank won't lend. You don't known the effect of Brexit for example. If there is something odd with the title of land that the developer hasn't sorted out yet....

Now suppose they build the house and nobody can buy and they go bust, what's to stop the receiver going after you to force you to buy or pay the difference between agreed price and the fire sale deal they do with a pension company buying them up...

Their solicitor knows all of this and should be advising their client the same. Get your solicitor to put pressure on them.

bobajob81

Thanks for your input spacehopper.
Our concerns exactly!
Our other concern is that the vendor pulls out of sale if too much pressure is put on them to insert the condition - we know the property is sought after !

theboringfox

the vendor can decide on whatever they want and if enough demand probably hold the cards. they simply want to keep your deposit if you dont complete. thats what it boils down to. on 24 mths they want to give themselves flexibility. i think in current market the vendor is being well advised but I'd be annoyed having to agree to those conditions.

bobajob81

Thanks theboringfox.
Another reason we are worried is that anybody we've asked for advice on this - including estate agents and builders, have said that it'd that first-time they've come across this!

If there's anyone who had gone through similar or going through same I'd love to get their thoughts or advice.

Thanks again,
B

sunshine909

Is it an unconditional contract? We're looking at a new build, still waiting to receive contracts but the EA has said it's an unconditional contract and won't accept any changes to it...

Do you mind me asking what development it's for?

bobajob81

Hi,
Well there were a couple of other issues our solicitor wanted changed and they didn't agree to any...so I guess it it is an unconditional contract, which was never mentioned by the EA. Wouldn't like to mention development by name.