Property Purchase contract - is this void.

efm said:
Luckily there weren't any difficulties but that was not because the standard building contract is a robust, fairly balanced and even handed document, but because I was lucky enough to get average quality builders whom I badgered and cajoled to the best of my ability and who delivered buildings only 6 months after the original delivery date and to a barely acceptable standard.

However, I feel that had I not been so lucky I could have been badly exposed to interminable delays, sub standard construction and uncapped price increases.
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There is undoubtedly an issue with regard to the delay and the fact that the purchaser has so little comeback, ultimately of course the builder will only have received 10% OF THE PRICE UNTIL THEY COMEPLETE SO IT IS IN THEIR INTEREST TO DO SO. (wasn't meant to be caps but not retyping that!).

The contract couldn't protect you from sub-standard construction taking place however it was worded, if it happens it happens and you do have comeback, ultimately the contract is voidable if the defects cannot be remedied.

I haven't come across a building agreement that allows uncapped price increases yet, the buidling agreement and contract for sale specify the price. How were you so exposed?
 
Stifster said:
I haven't come across a building agreement that allows uncapped price increases yet, the buidling agreement and contract for sale specify the price. How were you so exposed?
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Whilst I've never seen it happen in practise, if paragraph 6a is not deleted from the standard Building Agreement the the building costs could rise.
 
juke said:
Whilst I've never seen it happen in practise, if paragraph 6a is not deleted from the standard Building Agreement the the building costs could rise.
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I think from memory that was one of the paragraphs that I wanted changed.

With regard to sub standard construction - I take the point that a signed contract doesn't eliminate below par construction but I feel that the arbitration process outlined within the standard building contract is too cumbersome and weighted in the builders favour (however, I may conceed that point apon strenous cross examination :) )
 
maybe by the time the next boom happens the contract might be slightly less weighted in favour of the builder...
 
Vanilla said:
I disagree that the building contract is all one sided. However the standard building contract is silent as to what will happen if the builder runs over time ( and this time is usually in itself quite delayed).

The problem over the last 10 years is that the negotiating power has been firmly on the builders side so even if a solicitor wanted to make changes for their client the builder would simply refuse. It is then up to the client to either agree the standard terms or walk away. But people havent been willing to walk away. Understandably they have found their dream home, dream plans, dream investment and they cannot contemplate walking away. Whether that is about to change remains to be seen.

There has also been an ancillary problem in that people want cheaper and cheaper legal fees which means that solicitors must process more and more files to make a profit so that a certain percentage of solicitors, IMO, may not be taking the time to explain every detail to their clients. Although I feel that any conveyancing solicitor worth their salt should firmly point out the potential problem should a builder be late in closing even where they cannot do anything about it.

And then of course there is also a certain percentage of clients who simply do not listen when advices are given and afterwards claim ignorance.
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I'm too sure about people not being willing to walk away, its more to do with the fact they cant as devleopers will go after them for money if they have to resell at a lower price.
 
foxylady said:
I'm too sure about people not being willing to walk away, its more to do with the fact they cant as devleopers will go after them for money if they have to resell at a lower price.
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I was talking in the context of walking away BEFORE signing contracts.
 
You should contact your solicitor and get them to check if their is a time limit for completion in the Building Agreement. It should be near the front (I believe if is clause 2 -Completion Period). The standard is that the property will be built withing 18 months. I have seen this extended to 24 months and in some a time limit removed altogether. This should be your first step.
 
FKH said:
You should contact your solicitor and get them to check if their is a time limit for completion in the Building Agreement. It should be near the front (I believe if is clause 2 -Completion Period). The standard is that the property will be built withing 18 months. I have seen this extended to 24 months and in some a time limit removed altogether. This should be your first step.
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That is in the contract 18 months which was extended to 24 but ne completion date is approx 5 to six months over the 24 months
 
Vanilla said:
However the standard building contract is silent as to what will happen if the builder runs over time ( and this time is usually in itself quite delayed).
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So...to get back to the OP's original question - what options are open to the purchaser if the builder does not complete on time?
 
And to get back to the original answers - depends on what's in their contract and what their solicitor advises presumably?
 
The market has changed and Builders will jump through hoops backwards to get a contract signed. I had a similar case in the UK (already posted) on AAM, where completion went on and on - to the extent 2.5 years later and the development still not completed. However in this case the purchaser still wants the property. My case I couldn't give a damn, and I got out of it by getting a Barrister involved. The contracts in the UK and Ireland are similar. You have to want to fight the builder legaly and if you can show that there is a deliberate case of delay you have something.
 
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