Deposit on a New Build Home - part of price?

[o.versteer]

That's not a deposit then, in my view, unless, as you say, the price is officially 601, which you say it isn't. Might not be dodgy, but sounds a bit strange doesn't it.

[joewilliams]

He should be checking with his solicitor. Sounds a bit dodgy to me - I paid 1% deposit on mine which was deducted from the final price.

As an extra bit of advice, I'd recommend negotiating to keep 1% of the value of the property until the initial snagging list has been completed satisfactorily. In my experience, once the builders have got all your money, they'll very rapidly lose interest in your problems.

[joewilliams]

W4NTED said:

joewilliams said:

As an extra bit of advice, I'd recommend negotiating to keep 1% of the value of the property until the initial snagging list has been completed satisfactorily. In my experience, once the builders have got all your money, they'll very rapidly lose interest in your problems.

Hmm thats a good idea but not sure how the builders would react to that! Will pass this on to my bro - nice one.
PS - he's asked the solicitor and they mentioned that it depends on builder to builder...I still think it's wrong for them to do that, especially at that kinda value...

Depends on how badly they want to sell the place

I've seen commercial buildings where a certain percentage of the cost is held for 3 months after completion to allow for snagging works. The builders obviously won't like it, because it means he'll have to actually fix things instead of making excuses, but if that's what it takes to secure a sale he might go for it.

I just wish I'd thought of it before I bought my place!

[Wacky Racer]

So what you are saying is the House now stands at £601,000, so it really is up to your brother to decide whether he thinks it's worth this particular amount....

I must say, it does sound strange though....

Also is the £1000 returnable before exchange of contracts if an unforseen snag arises??...........

[johnfm]

Not sure how the money will be non-refundable. Lets say a builder induced problem occuers and your brother pulls out. How can they retain his money? Any 'contract' would be void for lack of good consideration on the partof the builder, no?

[Don]

This sounds like cack.

If they're making shit up like this WTF is your bro doing buying a house off the shysters.

A deposit is a deposit is a deposit.

A bribe is a bribe is a bribe.



The absolute WORST customer experience I EVER, EVER had was buying a new-build new house.
NEVER, EVER AGAIN.

I know some PHers are involved in smaller building companies and maybe they are OK. But when it comes to the big guys? Just don't. Go buy some lovely old place in need of some TLC for tens of thousands less. Pay less stamp duty. Then do it up (with money - not hard labour). Job done.

I will NEVER buy a new-build house again. NEVER.






Did I mention NEVER AGAIN!

[sleep envy]

me: I'd like to by this car
sales bod: sure, it's £10k
me: great, I've got £500 on me - is that ok for a deposit?
s/b: sure, when will you be paying the balance of £10k?

piss, he, taking, is, the - re-arrange the words to form a well known phrase

[Mattt]

Don said:

The absolute WORST customer experience I EVER, EVER had was buying a new-build new house.
NEVER, EVER AGAIN.

Sounds familiar to what certain friends have said. One of them bought a 200k flat (very high £/sqft), and was told he could move in during the Summer. He's still waiting.

[sleep envy]

Mattt said:

Don said:

The absolute WORST customer experience I EVER, EVER had was buying a new-build new house.
NEVER, EVER AGAIN.

Sounds familiar to what certain friends have said. One of them bought a 200k flat (very high £/sqft), and was told he could move in during the Summer. He's still waiting.

surely he's got LADs in his contract to cover it though

[Mattt]

sleep envy said:

Mattt said:

Don said:

The absolute WORST customer experience I EVER, EVER had was buying a new-build new house.
NEVER, EVER AGAIN.

Sounds familiar to what certain friends have said. One of them bought a 200k flat (very high £/sqft), and was told he could move in during the Summer. He's still waiting.

surely he's got LADs in his contract to cover it though

I've told him to negotiate over the delay, but AFAIK he hasn't. I'm sure the builders are being charged by the developers though!

[sleep envy]

throwing money away...

[scotal]

Mattt said:

sleep envy said:

Mattt said:

Don said:

The absolute WORST customer experience I EVER, EVER had was buying a new-build new house.
NEVER, EVER AGAIN.

Sounds familiar to what certain friends have said. One of them bought a 200k flat (very high £/sqft), and was told he could move in during the Summer. He's still waiting.

surely he's got LADs in his contract to cover it though

I've told him to negotiate over the delay, but AFAIK he hasn't. I'm sure the builders are being charged by the developers though!

I suspect he will get told to go poke it.
One of the joys of new build contracts is that the developers tell you when you are allowed to move in...... Got a client at the moment who has had hi s completion date moved from "probably November" to "May at the earliest"

[sleep envy]

if your limited and ascertained damages are included within the contract (which for a new build anyone with a grain of salt in their head would) you are entiled to enforce them

note, they are not punitive merely a claim for your loss

[emicen]

Mattt said:

Don said:

The absolute WORST customer experience I EVER, EVER had was buying a new-build new house.
NEVER, EVER AGAIN.

Sounds familiar to what certain friends have said. One of them bought a 200k flat (very high £/sqft), and was told he could move in during the Summer. He's still waiting.

Where abouts in the country is he? Flats are decreasing in price up this way, I'd be concerned with delays.

[scotal]

emicen said:

Mattt said:

Don said:

The absolute WORST customer experience I EVER, EVER had was buying a new-build new house.
NEVER, EVER AGAIN.

Sounds familiar to what certain friends have said. One of them bought a 200k flat (very high £/sqft), and was told he could move in during the Summer. He's still waiting.

Where abouts in the country is he? Flats are decreasing in price up this way, I'd be concerned with delays.

He's exchanged, what's he going to do??

[Mattt]

scotal said:

emicen said:

Mattt said:

Don said:

The absolute WORST customer experience I EVER, EVER had was buying a new-build new house.
NEVER, EVER AGAIN.

Sounds familiar to what certain friends have said. One of them bought a 200k flat (very high £/sqft), and was told he could move in during the Summer. He's still waiting.

Where abouts in the country is he? Flats are decreasing in price up this way, I'd be concerned with delays.

He's exchanged, what's he going to do??

It's in the Essex, I was a bit wary of the price, but it's not my money. If someone doesn't want my advice, I won't push the issue.

[emicen]

scotal said:

emicen said:

Mattt said:

Don said:

The absolute WORST customer experience I EVER, EVER had was buying a new-build new house.
NEVER, EVER AGAIN.

Sounds familiar to what certain friends have said. One of them bought a 200k flat (very high £/sqft), and was told he could move in during the Summer. He's still waiting.

Where abouts in the country is he? Flats are decreasing in price up this way, I'd be concerned with delays.

He's exchanged, what's he going to do??

Be Donald Ducked if he has.

If by bought, it was more "placed a grand deposit" I'd probably sacrifice it and then low ball them in a few months time. New builds in Glasgow are not going like hotcakes, tables are turning and its becoming a buyers market.

[Mattt]

Contracts all sorted - but he doesn't seem too worried, so I let him be.

[scotal]

emicen said:

scotal said:

emicen said:

Mattt said:

Don said:

The absolute WORST customer experience I EVER, EVER had was buying a new-build new house.
NEVER, EVER AGAIN.

Sounds familiar to what certain friends have said. One of them bought a 200k flat (very high £/sqft), and was told he could move in during the Summer. He's still waiting.

Where abouts in the country is he? Flats are decreasing in price up this way, I'd be concerned with delays.

He's exchanged, what's he going to do??

Be Donald Ducked if he has.

If by bought, it was more "placed a grand deposit" I'd probably sacrifice it and then low ball them in a few months time. New builds in Glasgow are not going like hotcakes, tables are turning and its becoming a buyers market.

New build, usually a 28 day exchange clause from reservation of the property then an open ended completion at the developer's discretion.

[Mattt]

Friends work for them and seem to enjoy it, not sure that helps you though!