Signing with undertaking from Builder

Hi folks,

Looking for some advice here.
We've hit some delays with closing our house due to the builders solicitor waiting on a receipt from the county council showing that they've paid money for road upkeep etc.

The builder is saying that we can close if we accept an undertaking from them that the receipt will be sent in at a later time.

Our solicitor is advising us against this as this undertaking does not offer us any comeback should there be any problem with this receipt. The receipt is part of the overall planning permission on the house so if there is an issue with it, there could possibly be an issue with planning permission and it would open up a world of trouble for us.
There is a very very slim chance of there being an issue, however its I'm starting to feel like the builder is pushing us into a corner to get us to take this undertaking. They say they hope to have to receipt next week but that sounds to me like they don't know (or wont say) how long it may take them.

Other people in the estate have agreed to the undertaking and are closing as a result.

I'm not sure what we should do to be honest... obviously a very small chance of there being a problem but I've very annoyed that we are being held up by this.

Any advice on what to do?

Ask yourself how much it's worth to you to facilitate the builder — because that's what you'd be doing, afaics. If others in the same estate are doing this — on the builder's sole say-so, or do you have independent proof? — then that should ease whatever 'cashflow' problems he may have...

Of course, if there's an incentive on your own side (e.g. in terms of occupancy, bridging finance, etc.), then that's a different matter.

"but I've very annoyed that we are being held up by this."


Listen to your solicitor - if the receipt is due next week, wait until next week. If it shows, well and good. And if it doesn't? Theres your answer.

mf

Cheers for the replies.

I know from independet souces that others are signing with the undertaking.
We're not under too much pressure to close as we've got temp accomodation lined up for the next while if we want it.

Just want to put the whole thing to bed and get into our place!

I'll wait to see what happens next week.... hopefully they'll get the receipt and everything will be hunky dorey!

Is that not a BOND the builder has with the local authority to guarantee the estate is completed and not left unfinished with no roads so the council has to take it over and do it ???

The Builders solicitor should undertake that the Bond and all planning charges due to the local authority, per the planning permission , will be paid in full by date nnnn . Undertakings come from solicitors not builders.

If it ain't sorted by the builder then the builders solicitor must pay for it themselves.

Tell your solicitor, in writing, to ensure the undertaking is 100% watertight and fully enforceable and you will be fine. If your solicitor spotted the bond was not in place then fair play they are doing their job properly and you should buy a box of choccies for them when you next visit.

"If it ain't sorted by the builder then the builders solicitor must pay for it themselves."

Precisely why no solicitor would give this undertaking - an undertaking should only be given by a solicitor where what is being promised is within their power to procure.

mf

mf1 said:

Precisely why no solicitor would give this undertaking - an undertaking should only be given by a solicitor where what is being promised is within their power to procure.

Click to expand...

Of course it is, they are rolling in it. !

If they won't give the undertaking its because they are hiding something or are not sure themselves .

If they are hiding something its up to your solicitor to spot it and advise you on the consequences .

I believe your solicitor is right. Ratchet the pressure on the builders solicitor .

The builders solicitor will not give the undertaking. The undertaking is ONLY coming from the builder.
That is whats worrying me... if it was a minor issue then surely the builders solicitor would take on the undertaking? Sounds to me like they think somethings up aswell.
Maybe I'm just being completely paranoid though.

Our solicitor is finally earning his money! Have been very disappointed with him before this but maybe he'll redeem himself here.

Our solicitor refused to sign without an undertaking from the builder's solicitor. The builder's solicitor said they wouldn't do this. Result: we didn't sign on the day we first expected-we waited maybe one week. It may be better to wait for the sake of a few days.

Dunner

your solicitor should send a note like

----------------------------------
Yo!

I regret that you are not in a position to give the undertaking at this time. I would ask you to urgently revert to your <builder client> and request that your client furnish you with the documents that will enable you to personally give the required undertaking that my client seeks .

MY client is most anxious to close as quickly as possible .

----------------------

Alternatively ( or concurrently) you could go down the planning office and search the file yourself , if the Bond has not been paid it will be quite obvious .

The people in the planning office will explain the implications for free.

Just to add a note from my past experience - Our new estate was complated/finished and signed off - allot of the new house owners had signed off the snags and we were ready for signing - the last thing required was the council to ok that all was in order - they did a survey of the sewage system before allowing it to be connected to the main sewage line - it was crap (pipes cracked during building works etc) - our builder had to replace most of the sewage system in the estate before the council would allow the connection. - they had not complied with the planning and it ended up the council were able to hold off on all people signing due to health/safety.
you could be put in a similar position if something came up after you've signed and the bond has not been paid - the council may be able to enforce planning terms.

I think we'll be holding off on the signing until we get the bond from the builders solicitor.

Thanks alot for all the help!