My rights if the builder withdraws from the reservation agreement

[AlphaKh]

I have reserved a new build house with a builder and got a reservation agreement from the builder valid for about a month. The reservation agreement requires missives to be completed in a month. I have been persuading constantly the builder to send 'offer to sell' to my solicitor. But they say they would do when they are ready. Now only one and a half week is left for the agreement to expire. These days there are exceptional circumstances due to the Corona virus pandemic but just thought what if the builder had other intentions of retracting from the agreement and that's why they are creating intentional delays. So am exploring the legal side of the issue. Just in case the builder keeps on delaying and the agreement expires and then the builder does not want to renew it then what are my legal options?

 

[diyhelp]

I would have thought once the legal agreement expires then your rights are diminished?

There are a number of issues to consider here. If you are having so many problems with the builder at this early stage, this is not a good sign. Even though the UK property market has not really crashed and burned as many had suggested, it is unlikely they would have investors knocking their door down to buy a newbuild home. Maybe turn the screw on the builder and suggest that if the agreement expires the price will go down to reflect the market?

 

[lookinginvest]

It would take a very brave or stupid developer to walk away from a buyer in the current market. I'm sure if you start mentioning a reduction in price, if the agreement expires and they want to renew, they will get moving. Firstly, I would play hard to get because I very much doubt that buyers are queueing up behind you.

 

[Longterminvestor]

As somebody else has already mentioned, I would not be in a rush to invest in the current market and I would be quite happy if the contract was to expire. Take a step back and look at the situation from a distance, it is almost inconceivable that the seller will have buyers "queueing up" if your interest does what fall by the wayside. I will try and squeeze them on price which will at worst prompt them to do something before the contract expires and at best give you a strong hand to play going forward if the contract does expire.

 

[FWL]

As numerous people have commented, the way the market is I would not be in a rush to go ahead with the purchase. Especially if the seller is starting to play games!

At this moment in time they would be lucky to find a buyer let alone find a buyer willing to pay the pre-coronavirus pandemic price. Do not rush into anything.