Urgent: Advice required re House Purchase/sale

[magic]

Wondering if any of you have advice on this:

We are in the process of selling our own house and buying a new one in a new development.

We have paid our 5k booking deposit and signed our contracts and paid a further 40k.

When signing our contracts we added in a clause saying that purchase of the new home was subject to the sale of our present residence |(the new home will not be ready for at least 12 months!).

The Developers solicitor has now contacted our solicitor saying that this is not acceptable from their end.

We do not want to take this risk owing to the slow up in the property market and also are starting to wonder whether the move is a good idea at all!

Can we now pull out of the purchase due to the failure of the devloper to sign the contracts?

Or are we tied to the purchase?

Any help you could give would be greatly appreciated.

 

[Ravima]

Re: Urgent: Advise required re House Purchase/sale

talk to your solicitor. If builder will not agree to the condition you put in and will not sign the contract, then there is no contract sos you should get your money back.

 

[PM1234]

Re: Urgent: Advise required re House Purchase/sale

I'm not surprised the developer is not happy to become part of a chain.

You could over price your current house to the extent that it could take a very long time to sell it particularly if you're now unsure about moving at all.

Without contracts being signed there is no agreement in place.

 

[doberden]

Re: Urgent: Advise required re House Purchase/sale

In the current market you should assume it will take a lot longer to sell than you expect and also that the price may not be as good as you expect. This may not be the case but it's better to assume it. I wouldn't under any circumstance agree to take out the stipulation regarding selling your own house. It puts you in a very high risk situation. There are still lots of houses being sold but you could be the unlucky one.

 

[Luternau]

Re: Urgent: Advise required re House Purchase/sale

I wouldn't under any circumstance agree to take out the stipulation regarding selling your own house. QUOTE]

Sellers of new property are not going to contract themselves into a chain. Selling second hand most sellers prefer non chain purchasers. Builders dont even go there.

If you are very concerned (and I hope you are not) that you will not be able to (1) sell your house and (2) get somewhere near what you expect to get or need to get to be able toaffors the new house, then I think the best thing to do is to pull out, as at this stage no binding contract exixts.

Good luck with what ever you decide.