New build - developer delaying signing contracts but still has use of my deposit.

[mustang01]

Buying a new build house in a development. Contracts sent to my solicitor within a week or so, and I duly signed and paid contact deposit of 95k soon after. But four weeks on and no sign of countersigned docs.

My solicitor says it’s v challenging to get deposit back with new builds b/c developer gets use of the contract money to finance the construction etc,and I should just sit tight, but I don’t like being messed around, particularly with this much money at stake. What’s my best option here, Should/can I force them to sign.

 

[Leo]

You can't force them to sign, your options are wait while applying whatever pressure you can or requesting your deposit back.

Builders generally don't delay builds to mess people around, but delays are common due to things going wrong or suppliers or sub-contractors letting them down. The sooner they close, the more money they make, so they are well motivated to keep things moving.

 

[mustang01]

You can't force them to sign, your options are wait while applying whatever pressure you can or requesting your deposit back.

Builders generally don't delay builds to mess people around, but delays are common due to things going wrong or suppliers or sub-contractors letting them down. The sooner they close, the more money they make, so they are well motivated to keep things moving.

But if there’s no binding contact in place till developer signs, does he still have the use of my deposit? And isnt it a bit fishy for him to be holding off countersigning when I’ve done all I’m supposed to on my side, or is that normal enough for new builds? Don’t like having the money in limbo when no contract in place.

 

[Leo]

But if there’s no binding contact in place till developer signs, does he still have the use of my deposit?

Having use of it it irrelevant. If either party want to back out of the deal he must return it.

And isnt it a bit fishy for him to be holding off countersigning when I’ve done all I’m supposed to on my side, or is that normal enough for new builds?

Nope, that's perfectly normal. There are often issues that crop up affecting the timeline, the builder won't want to commit to a date until they are sure they can meet it.

 

[mtp]

Look at your contract document . Get it form your solicitor . Find out if deposit being held by your solicitor or vendors solicitor in trust pending completion .

 

[mustang01]

Having use of it it irrelevant. If either party want to back out of the deal he must return it.


Nope, that's perfectly normal. There are often issues that crop up affecting the timeline, the builder won't want to commit to a date until they are sure they can meet it.

There’s no date on the contract and I don’t mind build delays, just want him to sign contracts so I know whether purchase is in fact happening.

 

[Leo]

There’s no date on the contract and I don’t mind build delays, just want him to sign contracts so I know whether purchase is in fact happening.

Setting the date is usually part of the process. A contract to buy without a date is dangerous, the builder could string you along for 10 years and then keep your deposit if you tried to pull out.