I reserved a new build a couple of days ago and I am now being pushed by the builder to use a solicitor firm on their 'panel'. There is also a push to do a "28 day exchange". This is a house which is nearly ready, someone else was buying it, but I am told that the sale has fallen through as the buyer's downward chain broke. I am a first time buyer so they called me and asked if I wanted to reserve this house and I went ahead.
From my side, I am okay to get as quick as possible, but am not sure I should skip the searches.
Also, when I told the builder's sales office that I would like to exchange and complete on the same day, they have denied this and have said that they only do completion on the last day of the month.
I am not sure if I should use the solicitors recommended by the builders as these solicitors say that they will not conduct searches but instead will go for "search indemnity insurance" for £50+VAT.
Even if I go for the searches, the solicitor told me that we can exchange contracts even if search results are pending. It appears that there is a rush to do the exchange of contracts even if the legal work or searches are not complete.
The builders are after my life to use this solicitors firm, I have called a couple of local solicitors firms and all of them insist to do searches.
I am not sure if:
a) I should go for the search indemnity insurance
b) I should exchange contracts even if search results are pending
This is a greenfield site.
Any suggestions will be helpful.
From my side, I am okay to get as quick as possible, but am not sure I should skip the searches.
Also, when I told the builder's sales office that I would like to exchange and complete on the same day, they have denied this and have said that they only do completion on the last day of the month.
I am not sure if I should use the solicitors recommended by the builders as these solicitors say that they will not conduct searches but instead will go for "search indemnity insurance" for £50+VAT.
Even if I go for the searches, the solicitor told me that we can exchange contracts even if search results are pending. It appears that there is a rush to do the exchange of contracts even if the legal work or searches are not complete.
The builders are after my life to use this solicitors firm, I have called a couple of local solicitors firms and all of them insist to do searches.
I am not sure if:
a) I should go for the search indemnity insurance
b) I should exchange contracts even if search results are pending
This is a greenfield site.
Any suggestions will be helpful.
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32 Comments
sorted byWould you recommend to anyone to do what you are questioning?
In nearly all scandals that you hear about, the buyer used the builders solicitor. It really ought to be illegal for a builder to 'appoint' a favoured solicitor. (edited)
With all those conditions, it sounds like the developer is desperate for the sale. I wonder if he’s got money problems and needs to show his bank a guarantee of next month’s payment perhaps.
If you were minded to jump through all their hoops (which I strongly advise you to walk away from), I’d be renegotiating your offer by £1000’s.
Had to continually chase them, had to do exactly what they wanted or they would not proceed with the mortgage and ended up costing significantly more than I was initially quoted.
Lesson learnt - they were acting in NatWest's interest not mine. Never again.
I would suggest finding your own solicitor, but based on your comments, I'd be minded to find another property as the developer sounds like they may be difficult to deal with.
Was it built over a tip, subsidence, issues with the ability to mortgage the property, too near watercourses, going to build a prison 2 meters from your front door, land regraded as flood plain, oooeee so many issues that could be hidden by using the builders solicitors.
My parents built a house and did everything via the builders, and they failed to mention that the views over the fields were only for a few years because the builders had put in planning permission to build on the fields opposite, never informed my parents, and the whole reason they bought a house at 20% more than the others was removed.
Always remember, builder are not there to get you a home, just make as much money as they can. You are being sold the worse house on the estate, and they have come to get rid. Could be good, could be bad. Get an independent survey done, if not walk way. (edited)
A solicitor friend of mine defined the definition of 'a shame' for me.
It's a shame if a bus load of solicitors drives over a cliff - with an empty seat.
A guarantee is only as good as the people who service it, not the people who sell it.
Use, your own. Don't cut corners unless you can afford to throw the money away, and possibly losing even more money.
Searches were done within 28days. I did have to buy an indemnity, but that was because there were a couple of covenants on the house we were part exchanging. I knew what they were from when we bought ( we didn't own the mining rites beneath the house and had the right to draw water from the spring in the next field) but if you're a first time buyer, that wouldn't be an issue.
When I bought a new build it was exactly the same, I’m sure the solicitors in question meet the appropriate standards. But check this and pay a little more attention to all the solicitor documents and all should be fine.
Was for me when I was in the exact same position as you.
"reputable solicitor"
So young and yet so cynical!
Yes they are a member of The Law Society's Conveyancing Quality Scheme
And Yes, they are regulated by the Solicitors Regulation Authority (SRA)
There is a stamp duty contribution incentive involved and also this house had some upgrades installed which do not come as standard (the previous buyer chose them as part of his option upgrades). I am told that these incentives are valid only when keep the 48 hour deadlines and exchange between 28 days.
When I insisted that I will use my own solicitors, I was told that I will have to exchange within 28 days even if search results are not back by then
Did you exchange even when the search results were pending?
Always the way when I've bought new, because they need to produces sales figures for the month. Always ended up with an exchange rate of the last day of the month.
However all searches were done and completed.
28 days completion is normal aim for them but depending on circumstances takes longer.
If houses is already nearly build, well if roof is on, you can't make amends and make kitchen choice, extra, sockets, doors, lights etc. (edited)
anyone else already in the development? knock on doors and ask if they got searches back - can you get sight of them? (still take the indemnity and check v.carefully what it covers and what you get back under what conditions)
very often the reason is someone gets rejected for the mortgage after DIP.
It is very common, dare I say standard, for national builders to recommend and incentivise you to use someone from their panel of solicitors and even their own recommended mortgage brokers as well as being strong on a 28 day exchange.
Some even refuse to let you talk to them until you've gone through a affordability check with said broker.
It is just about maximising profit. If you use their recommended people they get paid by those people. If you don't, they don't.
As for those upgrades - that's a bluff and a half. If this house is almost ready then it'll mostly if not entirely already be in place they're not going to start ripping things out, it'll cost too much.
They are around, buy cheap, buy twice
1. What is the builder in such a rush for me to buy this property?
2. Why does the builder want me to use a solicitor chosen by them, and not allow me to choose my own?
3. Why does the builder want to skip the searches?
4. What happens if you've been sold a wreck? What guarantees are in place that everything will be fixed to your satisfaction after the sale has gone through?
If the builder can't/won't answer these questions to your satisfaction then walk away.