Can Vendor ignore completion notice

F

foxylady

Registered User
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Having recently served a completion notice on vendor of property (thats not built or nowhere near it) I am wondering how it is possible for them to ignore this and basically give it the 2 fingers, if the shoe were on the other foot surely we could not do same.

Why are building contracts worded to favour developer and not protect purchaser without them having to go to extreme and costly lengths??
 
foxylady said:
...
Why are building contracts worded to favour developer and not protect purchaser without them having to go to extreme and costly lengths??
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If the contract was biased in favour of the developer, what had your solicitor to say about the matter? Did s/he recommend not signing or renegotiating?
 


I appreciate that it must be very frustrating but there is a process to go through to reach a conclusion - it can be short circuited obviously if people behave but when people are in trouble ( as your builder may be) they tend to behave very badly. If the shoe was on the other foot, of course you could behave badly. But its not.

Building Contracts are standard. You choose whether to sign them or not. In boom times, Builders have stronger negotiating positions. In down times, its the Purchasers turn.

mf
 


I know we choose whether to sign them but we were told it was standard contract not told what could happen if builders were dragging there heels and certianly didnt expect the place to take almost 3 years to build
 
mf1 said:
Building Contracts are standard. ... In boom times, Builders have stronger negotiating positions. In down times, its the Purchasers turn. ...
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So there are "standard", biased in favour of who holds the whip-hand.
 
Hi foxy,
the contracts are standardised to some extent but they are also significantly amended by the vendor's solicitor in his favour and they are negotiable.

Unfortunately, three years ago it was virtually impossible to negotiate amendments with a vendor's solicitor. It was a vendor's market, and if we didn't take the contract, someone else will.

Having said that, if you are waiting for 3 years, with no end in sight, then I don't think your solicitor is doing enough to help you. I had a client in a similar situation, and ultimately rescinded the contract. Every situation is different, and I have no idea what is in your contract, but I would go back to your solicitor and push for more action to be taken. Be very clear about what you want to achieve. Do you want to walk away, or do you want to hurry things up?
 
foxylady said:
According to solicitors these contracts are like a one size fits all type thing. But they dont seem to protect purchaser
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Can you just confirm? Is it that the builder does not have the money to pay you back your deposit? Is that what the essence of this is?

mf
 
mf1 said:
Can you just confirm? Is it that the builder does not have the money to pay you back your deposit? Is that what the essence of this is?

mf
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Surely the builder doesn't receive the deposit, it's held in trust by his solicitor?
 
Bronte,
In some situations the builder gets the deposit. In almost all cases where homebond or premier guarantee structural insurance is in place, the deposit is paid out to the builder. This is standard practice and in the contract. The insurance should cover the deposit if the builder fails to complete.

Kate.
 
And one would only sign a contract with such a clause in place ? OP does your contract have an insurance clause in the event of the builder going bust?
 
Bronte,
A solicitor acting for a purchaser should only accept release of the deposit to the builder when they get the homebond or premier guarantee initial certificate. Where there is no homebond or premier guarantee (as would be the case with most one off houses) the deposit should never be released and should be held by the vendor's solicitor.

Kate.
 
I recall or solicitor advising us that the standard Law Society contract for house purchase was horrendously biased towards the builder, but we really had no choice but to sign up if we wanted the house.
 


I should have ben more clear on time thing. We purchased 2 years ago but it will be 3 years before completion as it hasnt started yet, although I dont think it will start. Our solicitor said we might be able to rescind contract and lose our deposit 15k. We just want our money back so we can buy our first home together and get on with our lives
 
Do you have a clause in your contract as to what happens when the builder does not complete on time? Has your solicitor not advised you on this? Maybe you have to go down the completion notice route first and then you get your deposit back if no action is taken on the completion notice? I guess doing this costs money, how much does it cost? If it's close to your deposit amount it might be a waste of time. What's more worrying is that the builder can seemingly ignore you and if you pull out he can take your deposit and force you to complete.
 


We cant get a definitive answer of how much it will cost to pursue this further
 
foxylady said:
We cant get a definitive answer of how much it will cost to pursue this further
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Have you not even been given a ball park figure? Has your solicitor/barrister previous experience of taking this type of action?
 
Last edited:
Hi Foxy,

I think you need to make an appointment with your solicitor and discuss where you stand in detail. No-one can give you good advice without seeing your contracts and building agreement. Tell your solicitor that you want to pull out, and that you want to get your deposit back. Ask him/her what can be done to achieve this, and what if any risks are attached to that option.

I'm not putting you off, it's just that sometimes you need to just take the time to sit down with your solicitor, ask all your questions, and make it very clear what you want to achieve.

Kate.
 
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