New build contract negotiation

throwaway321

I am curious to hear if people have been able to negotiate/change a contract for a new build and what those changes were.

What was the level of active participation from the your solicitor, i.e. were the changes negotiated directly with the builder, or via the solicitors?

throwaway321

throwaway321 wrote: »

I am curious to hear if people have been able to negotiate/change a contract for a new build and what those changes were.

What was the level of active participation from the your solicitor, i.e. were the changes negotiated directly with the builder, or via the solicitors?

Are you asking about changes after you have signed the contract or before?

If it’s before, changes need to be discussed between you and the developer, then recorded in the contract before you sign. If you have already signed the contract, you are committed to the terms of the contract, if you want to make changes to the build, you have to agree a price with the builder yourself for the changes, then inform your solicitor of price and change in spec so that they can be included in final price.

ec18

depends on the change?

when we were buying the help to buy was new so we put it in the contract that it would make up part of the purchase price as the developer had to be the one to claim it.

awec

Any changes to the contract itself should always go through your solicitor, who will talk to the developers solicitor.

Any changes to the house itself is between you and the developer, and generally doesn't result in changes to the contract.

throwaway321

This is for a new contract that has not been signed yet. I'm looking for people's experience in negotiating things like:
* adding a subject to finance clause
* eliminating or limiting the scope of clauses that prohibit you from objecting to future planning applications by the developer
* adding the white goods to the contract

Dolbhad

throwaway321 wrote: »

This is for a new contract that has not been signed yet. I'm looking for people's experience in negotiating things like:
* adding a subject to finance clause
* eliminating or limiting the scope of clauses that prohibit you from objecting to future planning applications by the developer
* adding the white goods to the contract

No builder will agree to delete any clauses that say you can’t object to planning.

Subject to finance is generally allowed in. You will have some builders who won’t allow it - follow your solicitors advice.

White goods again depend on the builder. Some builder offer it subject to signing contracts within a period of time, some don’t. If your builder doesn’t offer white goods, you won’t get them. But you can generally negotiate white goods period of time.

jrosen

A builder will not agree to removing a clause that forbids you to object. Personally id be skeptical of buying with such a clause.
Subject to finance depends on the builder. Have never found them to be particularly flexible.

White goods, if its not included in the development your not getting it. Ours had said you only get it if you sign within 21 days, I believe thats pretty standard. That being said they had already purchased and bought for all homes anyway so I figured we would still get them. But we were also willing to loose them.

DianeMc2018

jrosen wrote: »

A builder will not agree to removing a clause that forbids you to object. Personally id be skeptical of buying with such a clause.
Subject to finance depends on the builder. Have never found them to be particularly flexible.

White goods, if its not included in the development your not getting it. Ours had said you only get it if you sign within 21 days, I believe thats pretty standard. That being said they had already purchased and bought for all homes anyway so I figured we would still get them. But we were also willing to loose them.

Can I ask about this? We have just signed on a new build but we are not within the 21 days. Do you think we'll miss out on the promised white goods?

the_syco

throwaway321 wrote: »

* eliminating or limiting the scope of clauses that prohibit you from objecting to future planning applications by the developer

I assume that the social housing percentage hasn't been built yet?

Graham

the_syco wrote: »

I assume that the social housing percentage hasn't been built yet?

or any proportion of the development, private/social or otherwise.

No developer wants buyers of phase 1 to object to phase 2/3/4 etc.

jrosen

DianeMc2018 wrote: »

Can I ask about this? We have just signed on a new build but we are not within the 21 days. Do you think we'll miss out on the promised white goods?

Highly unlikely but it’s something you need to ask

Thoie

throwaway321 wrote: »

I am curious to hear if people have been able to negotiate/change a contract for a new build and what those changes were.

What was the level of active participation from the your solicitor, i.e. were the changes negotiated directly with the builder, or via the solicitors?

I bought a house in a new estate a few years ago, and there was a lot of trouble with the contracts, as my solicitor wanted to change a few things, and the builder's solicitor point blank refused to budge.

One of the clauses they had in was that the 10% deposit on signing was completely non-refundable, wouldn't be held in escrow, and would essentially just disappear down a black hole and if anything happened you'd never see it again.

Everyone elses' solicitors also refused to let their clients sign that, so eventually they reissued the contracts with something more acceptable. But I don't think anyone ever managed to get anything else changed.

If it's a one off house I'd say you have a better chance of agreeing changes, but if it's an estate it's less likely, as the builder's solicitors can't be arsed having unique contracts for each house.

wolfyboy555

Do management company fees for new build housing estate usually go into the contract ?

Thoie

wolfyboy555 wrote: »

Do management company fees for new build housing estate usually go into the contract ?

There's usually something about the fact that you're obliged to pay them, some mention of the initial management fees, and a bit where you'll pay a pro-rata amount for the remainder of the year on completion.

So, if the fees for 2021 are €365 it will mention that annual management fees are obligatory, the fee for the first year is €365, pro-rata payment due on closing.
Then if you close on November 1st, an extra €61 will be due when they're doing all the final sums.

They try to avoid saying "a fee of €365 is payable each year", because that causes trouble when the management company votes to increase fees in a few years time.

cubatahavana

DianeMc2018 wrote: »

Can I ask about this? We have just signed on a new build but we are not within the 21 days. Do you think we'll miss out on the promised white goods?

Our 21 day period ended end of august. We haven’t signed yet (will do next week). We are getting them no problem

Graham

Mod Note

discussion of the no-objection to planning clause split into a separate thread

Cork2021

Hi, just looking to see how the subject to finance clause works? Is it as simple as saying the bank won’t give us a mortgage and we get the booking deposit back?

https://www.boards.ie/discussion/comment/121430475#Comment_121430475

The “subject to finance” is a clause you as the buyer may want, but the seller is under no obligation to include it. If there is one and you have signed the contract, then you are likely to have to forward the letter from the lender showing that finance has been withdrawn. If you haven’t signed the contract, your deposit is fully refundable if you do pull out. If there is no finance clause and you have signed the contract, you are in a bind because you have entered a binding contract, at the very least you will lose your deposit.