Builder charging interest while snags remain outstanding?

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wheeler

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I seriously need some help. I am buying a new duplex. I have signed contracts. Did snag after snag and finally got it down to 2 items outstanding.

These are still not done but Hook & McDonald keep calling me to tell me that I am being charged interest as the builders have made an undertaking that the work will be done afterwards.

I instructed my solicitor to say that I will not close until work is done.

Now Hook are back on saying that there has been no communication from my solicitors even though sellers solicitors are trying to get in contact with him. And that all this time I am being charged interest.

I don't know who to believe as my solicitor is saying that he has received nothing from them and has communicated with them saying that I will not close subject to work being done.

Can anyone help me? I'm tearing my hair out.

Can anyone set this straight - I have not seen, never mind signed, any document saying that work will be done after I close. Can I really be charged interest?
 
Re: Subject to

I am at the same stage at the moment ie. closing - but not yet snagged.

These are still not done but Hook & McDonald keep calling me to tell me that I am being charged interest as the builders have made an undertaking that the work will be done afterwards.
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My (first time buyer with no previous exp. aside from what i have learned in the last year on this forum) understanding is that there are 'major' items and 'minor' items when it comes to snagging. The builder must complete all major items before closing. Minor snags can be completed afterwards - although i think you are entitled to confirmation (ie. on paper) from the builder that they will undertake to carry out these snags within a certain period of time (anyone know how long?).

Whats the nature of the remaining snags?

What can be determined as major and minor items is a bit of a grey area. Maybe someone on here can clarify?

I don't know who to believe as my solicitor is saying that he has received nothing from them and has communicated with them saying that I will not close subject to work being done.
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I would say cover yourself. Nothing stands up better than the written word. If your solicitor has confirmed this to you via phone, send them a fax/email confirming your understanding of the situation. That way the onus would be on them if interest was charged, etc.
 
Well - all window panes need to be replaced down stairs and 2 internal doors need to be replaced.

Whatever about the doors, the windows are major.

Anyway, my biggest worry is that I will be charged interest. I don't understand how I can be if I haven't seen any undertaking that the work will be done.

I will take your advice though and get it in writing from my solicitor.
 
Set up a conference call with your solicitor & the estate agent and (ideally) their solicitor - get them all on the line at the same time so they can't keep blaming each other.
 
whelanfiona said:
Anyway, my biggest worry is that I will be charged interest. I don't understand how I can be if I haven't seen any undertaking that the work will be done.
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Its a tactic the builders are only too used to. They put the customer under pressure with threats of interest charges or breach of contract.
More than likely thats the case. There is a chance that your solicitor is not so organised but once you get written confirmation, you'll know its not their fault.
Well - all window panes need to be replaced down stairs
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So theyre badly scratched?

Whats wrong with the doors?
 
Slash marks across them.. probably from opening the packaging with stanley knives.
 
Doesn't the standard building contract allow the builder to declare the house is ready and to allow you 3 weeks to pay and then charge you interest after that, even if you think its rubbish?

You need someone like Vanilla to confirm that.
 
Jeese.. don't say that!


You mean that even if the place was falling down that once the builder thinks it's ok then that's it!? that doesn't sound right.

Anyway.. to add to this, my solicitor is a nightmare. I have contacted the builders solicitor and they have detailed letters they sent to him, phone calls made leaving messages without return and I have to say that since I've been trying to get in touch with him I haven't had calls returned.

I don't know what to do now. I'm tearing my hair out.
 
whelanfiona said:
Jeese.. don't say that!


You mean that even if the place was falling down that once the builder thinks it's ok then that's it!? that doesn't sound right.

Anyway.. to add to this, my solicitor is a nightmare. I have contacted the builders solicitor and they have detailed letters they sent to him, phone calls made leaving messages without return and I have to say that since I've been trying to get in touch with him I haven't had calls returned.

I don't know what to do now. I'm tearing my hair out.
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Fiona I was in a similar situation but closed 2 and a half weeks ago after two months of waiting for new glass. I initially snagged August 2nd, again August 20th and closed on October 20th.

Basically in a 2 bed mid terrace every 10 panes in a bay window, patio doors and another window had to be replaced...all the glass in the windows downstairs. I said that I would ignore the minor scratch or two in the windows upstairs if all windows downstairs were replaced. They were very badly scratched. Not something minor.

My solictor indicated that I may have to close with agreement in writing. It worked out that this was not necessary. When the windows were replaced they completed the rest of the snag and I had the keys in a week. I am happy with the work. Have had minor things like damp near door and radiator working and they've been fixed.

You say you have contact you have tried contacting your solicitor. What about making a personal visit? Again a fax, registered letter would do the trick as suggested in another post.

Do they builder's solicitors have proof of posting i.e. were the letters registered? or proof of messages left on your solicitor's phone? You should have 3 weeks from the date that the builder's solicitors impose a closing on you to close before interest is charged. What date is their letter from?

Also I'm curious to hear that the estate agent is still involved. I thought all contact should be between solicitors. The estate agent was out of the picture after the initial booking deposit in my case.

Any chance you could take a few photos of the damage. Make sure the statement of the work that they are going to carry out includes everything and there is a time frame set.

I didn't want to close with work still outstanding because of the effort it would take to chase up the builders after.

Best of luck.
 
No surprises here.

Builders run the country, not politicians or planning officials. Had a similar experience a few years ago. Refused to close pending outstanding snags. In the end the builders solicitor threatened my solicitor unless he forced me to close. (removal from recommended list) I ended up closing with a written undertaking for the o/s snags. After three months still o/s. When we chased the builders solicitor we got accussed of harassment, but it did the trick. I complained to the law society to be told I couldn't make a complaint about another solicitor. (only my solicitor could)

In summary: buyer beware - Nobody is on your side!

Good luck - you'll need it!
 
whelanfiona said:
I seriously need some help. I am buying a new duplex. I have signed contracts. Did snag after snag and finally got it down to 2 items outstanding.

These are still not done but Hook & McDonald keep calling me to tell me that I am being charged interest as the builders have made an undertaking that the work will be done afterwards.

I instructed my solicitor to say that I will not close until work is done.

Now Hook are back on saying that there has been no communication from my solicitors even though sellers solicitors are trying to get in contact with him. And that all this time I am being charged interest.

I don't know who to believe as my solicitor is saying that he has received nothing from them and has communicated with them saying that I will not close subject to work being done.

Can anyone help me? I'm tearing my hair out.

Can anyone set this straight - I have not seen, never mind signed, any document saying that work will be done after I close. Can I really be charged interest?
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Apologies if I'm repeating what's already been said. I haven't read all of the replies.

You need to be more forceful. First off...stop listening to Hooke. Estate Agents are idiots. Just ignore them. Completely.

Take the day off. Go stand in front of your solicitor and demand he/she finds a resolution to the situation today. If needs be make him/her ring the other solicitor and get it sorted there and then. A builder (as far as I'm aware) cannot force you to hand over money before all snags are finished. Have your solicitor make that point very strongly. Also demand that all interest charges are dropped. Don't take no for an answer. Basically be a real pain in the ass. If you do this you'll sort it out within one to two days.
 
OK.. a quick update..

Solicitor was in touch to say that he can't guarantee that I would not be charged interest. But after some insistence he finally emailed me to say that if I closed quick there would be no interest charged.

The builders were in touch to say that all work has been done but I have yet to see it. I'll call over tomorrow morning probably to check it. But at this stage if it is not complete I would be forced to close for peace of mind.

So perhaps there will be a good ending but it hasn't been without sleepless nights and I would have to say that my solicitor added to the mess.

Anyway - I'm sure I'll be back with more..
Thanks for all the advice.
 
I didn't see this until now, although it looks like its been sorted out satisfactorily, for those who are interested, the usual clause in the building agreement which applies is:

'
Should the Employer consider that by reason of any defects or omissions (hereinafter called “defects") the Works have not been properly completed he shall within seven days of the receipt of such notice from the Contractor notify the Contractor in writing of such alleged defects. If the defects are either agreed between the parties or determined by the expert as provided in sub-clause (d) of this Condition to be of a minor nature and if the Contractor undertakes in writing that he will remedy such defects within a reasonable time, then the Employer shall not be entitled to seek any postponement of the Closing Day nor any abatement of the Contract Price.'

The expert in clause d is an arbitrator who is appointed in the event that the parties will not agree whether the defect is minor or not.

However something to remember is that this is the clause in the Law Society approved edition of the building agreement- it may not be the clause in your agreement as the builder may have altered the clauses.

 
whelanfiona said:
OK.. a quick update..

Solicitor was in touch to say that he can't guarantee that I would not be charged interest. But after some insistence he finally emailed me to say that if I closed quick there would be no interest charged.

The builders were in touch to say that all work has been done but I have yet to see it. I'll call over tomorrow morning probably to check it. But at this stage if it is not complete I would be forced to close for peace of mind.

So perhaps there will be a good ending but it hasn't been without sleepless nights and I would have to say that my solicitor added to the mess.

Anyway - I'm sure I'll be back with more..
Thanks for all the advice.
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If you close quick...why should you close quick if the work is not completed?
I wouldn't accept that. And your solicitor should have kept you informed so that you wouldn't have to close quick or be charged interest.

That is unacceptable.

When you reinspect and if there are major items outstanding take photos with a digital camera and send them to your solicitor who can then inform the builder's solicitors.

I may have closed with minor items but 14 panes of glass was a major item.

Also find out if they have proof that they have ordered the glass/new doors etc.
 
I am doing an inspection Friday morning but I was there today and saw that they have replaced the glass and tomorrow they change the doors so it looks like all will be well.

I feel you are right though.. even if the glass had not been changed then I still would have closed due to stress levels over the last few days. Maybe if I had a better solicitor I might have been in a better position but right now all I want to do is close and get on with it.

It hasn't been a great experience..

There's a life in politics out there if anyone is interested.. due to the nature of the market over the last 10 years I'll bet you could pick up countless votes if you started a campaign based on the house buying process because I'm not the first and I won't be the last to have gone through the fight.
 
For me they replaced some glass but didn't do anything about the rest of the snag list until they had all the glass in. It was then that they rang me and the builder's solicitor contacted my solicitor to let me know that everything was completed.

I went out and everything was perfect...I was delighted after all the waiting.

Hope it goes well this morning for you.
 
Vanilla said:
The expert in clause d is an arbitrator who is appointed in the event that the parties will not agree whether the defect is minor or not.
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Who could be appointed as an arbitrator? Are there specialists out there that only do this sort of thing? And who picks up the tab for their services?
 
This should answer your query, the relevant clause is quoted below:


In the event of a dispute between the parties as to the existence of such defects or as to whether they are of a minor nature any such dispute shall be referred to an expert for determination who shall in default of agreement between the parties be appointed on the application of either party by either the President of the Incorporated Law Society of Ireland or the President of the Construction Industry Federation, such expert to be appointed from a list of experts approved jointly by the President of the Incorporated Law Society and the President of the Construction Industry Federation or in the event of either of such persons being unable or unwilling to act by the next senior officer of the respective Institutions. The decision of the expert shall be final and binding on both parties and he shall have power to award the costs of determination against either party
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