New build

rosemcc

I have just put a booking deposit on a house that I have no hesitation in buying but the bank is being very slow in getting loose ends tied up and the deadline is fast approaching for signing contracts. The developer has stated that demand is so high that there will no extension given under any circumstances. Does anyone know if it is possible to sign the contracts (once there is a clause stating that if anything falls through, you won’t lose the 10% deposit) and then wait for the bank to get it together after?

godtabh

Some developers won’t allow a clause like that.

rosemcc

is there any circumstance where an extension would be granted? Excuse my ignorance but I haven’t got a clue and I am shocked at the lack of speed of the process and feel like there is no way to get it done before the deadline but it is completely out of my hands. Very frustrating

89897

You need to sit on the bank and hound them until its done. Its very fustrating and unfortunately its who shouts the loudest is getting things done. I cant see any lawyer allowing you sign contracts without the loan offer from the bank

dkRulez

Developers and agents will chase and pressurize you to sign asap. They would ask you to even sign without a loan offer. They all want to close the sale and remove uncertainty. From my experience, (could be wrong) this is just tactics from the builder, they hardly pull out from a deal until its exorbitantly late from your side or you have not been communicative to them. We were scared of the 28 days deadline but signed 70 days later and waited 4 months for them to revert back on our contract, this too on a highly desirable property and reputed builder/law firm. We continued to communicate our status and delays from the bank side for loan offer.

It is too much of a hassle for the developers to go back to market and sell again and wait for the delays from the new buyer. If they are confident on your ability and interest they would wait but put pressure time to time. I believe roughly ~10-15% of the houses sold would be cancelled or delayed in signing and developers have factored that in. There is always a subject to loan clause added by your solicitor which builders are happy to accept. Again as I said builders know 10-15% of the houses would have delays and problems and they are okay with that but will always push buyers to move quickly.

rosemcc

thanks for all the info. We are now three working days from when we need to sign contracts. We happen to be going on our honeymoon the next day anyway (which has been booked for months) so asked for an extension to get everything done for the day we arrive back in Ireland. The developer got back to our solicitor and said that no extension will be given and if we can’t sign contracts by the deadline, we can send them back the contracts and they will issue us our booking deposit yet.

We are now just waiting on the valuation and the bank to then issue approval based on that. I think it is now highly unlikely that we can all get it done on time.

Repo101

Unlikely to get done in 3 days. Are the bank aware of the situation? I imagine your loan offer is ongoing for quite a while for the developer to be talking about pulling out if you can't sign in 3 days. I assume the contracts are with your solicitor for some time now?

rosemcc

The bank are aware of the situation and have dealt with these developers so are aware of the difficulties with wiggle room with them. In fairness the bank have been amazing in trying their best to get things done for us. We had approval and my husbands income increased so we had the loan amount changed but that was only in the last few days.

We given them loads of excuses or been difficult in any way and we have been told by the bank that new approval will be no issue so I don’t really understand why the developer would waste the time looking for someone else.

The plan tomorrow is to get in touch with the estate agent and ask that if the time runs out for the deadline and we are forced to send back contracts, can they keep the house for us and we go again. In that case, things should be very quick and smooth but seems mad to have to do all that.

witchgirl26

We had this from our developer. A whole "well you won't get the voucher for the electrical items if you don't sign by x date" and "we'll pull out from the sale if you don't sign by y date". After all was said & done, we signed about 2 weeks after y date & they never pulled out, returned our deposit and we did get the voucher after all. They were just trying to move things along. Is the house actually built or is it still off plans? Coz off plans should have no problem with holding out. Even built (which ours pretty much was), unless they've sold the rest of the estate & have a waitlist, it's not really in their interests. Plus it would take longer if they were to start the process again with someone else. I'd maybe try pointing that out to them.

rosemcc

Ok so maybe we just keep going and don’t give up even at the final date!

I spoke to the estate agent today and talked about how serious we are and said that if we have to, can we put our name down for another house in the development as we will 100% be going ahead with purchase if given the chance and this seemed to peak his interest as he said to leave it with him and he will see what he can do.

mum getting quite annoyed that they won’t extend at all as the house is not built yet and in the contract, it states that they have 18months from signing to complete the house. It just seems so unfair