So, Your trading your property in to a builder in part exchange for one of their new build homes? Harsh as this sounds they always lower the price on your own property and set in their contracts clauses to allow them to recoupe any unforseen issues between signing the deal and them (the builders) taking possesion. In many cases these are understandable yet they do this under the presumption that you could not sell on the open market or are just to desperate not to loose out. Eitherway selling your home on the open market is financialy better, and will put you in a better negotiating position. To this end if you are undertaking a part exchange with a builder consider the contract, it's terms and your obligations / costs without emotion. Don't be pressed into signing as this is standard practice. Contact an INDEPENDANT lawyer and let them help in the negotiations and provide you with an objective overview. The contracts can be confussing as the clauses and discussions bounce between your sale and your purchase. Experienced legal advice is critical especially as when they sell your property they tend to expect a minimum of 10% uplift on the price they paid you and when it's all done this can sourer your move if you are not aware. These are not small sums and take years to save up. This information may seem a harsh but you either know this at the start before you sign or at then end. You will still require to move and organise all the usual the only difference is that some client's just want it all sold and bought quickly without the fuss, but it comes at a price.
1. Is The Lawyer Recomended By The Builder always Got Your Back?
2. If they negotiate hard for you, will the builder recommend them again?
Clients considering buying a New Build property are often directed to use a lawyer chosen by the Builder/Seller. The law allows you to instruct a lawyer of your own choosing, not just one recommended to you by the builder/seller. We are sure that they will provide you with the approved legal advice required, yet seeking your own lawyer, independent from the builder/seller has its own benefits. Buying a new build property has its own set of legal rules. It can never hurt to seek a few legal opinions before you sign or bind yourself to any contract. Agreeing to buy a new build or signing up to a builders part exchange contract is no different.
In short, seek some advice, it only takes a few minutes to discuss and at the end of our chat if you decide to go with the builders chosen lawyer, we wish you all the best.
Although part exchange can be viewed as a process in its own right, it is basically a sale and purchase in the same contract. To this end many people can get confused.
The contract in a new build property are normally issued by the builders lawyers. They will detail the usual clauses covering what is being sold for how much and what is the remedy if the contract is breached. The date of entry will often be the date on which the property is passed as fit for habitation by the local authority. As the timing of construction is not perfect science (it can be delayed by weather, materials, construction workers etc.), the date of entry is not fixed and liable to fluctuation. You should factor these issues into your plans, especially if you are also selling your own home.
The search costs required, are dependent on the terms set down by the builder. In many cases the builders do not pay for any searches. (A fact detailed in our Guide to Conveyancing) If timed correctly, you can cut back on the costs by combining some of the searches to cover both, but you will still have to purchase the basic searches.
One of the issues your own lawyer must consider is to ensure that your builder is also bound into the transaction. Although this seems self evident, you must remember that the formal offer produced by your builder can in some cases highlight the best position for them – not you. So before you sign anything ensure that you have discussed it with your lawyer. Ensure that your own interests are covered.
The main issue for many clients is getting the statement of account as early as possible. Given the amount of incentives, builders costs and factor charges it takes time for the builder to issue a statement of account for the transaction. As such your own lawyer may not be in a position to advise you of the final bill until the builder issues their own statement which should include any additions to the specification of the property, that you have requested.
Q - Can We Try The Legal Service For Free?
A - Yes, our unique ‘No Obligation Service Opportunity’ allows you the opportunity to experience our highly valued service without any commitment or payment on your part, so go ahead and compare the Conveyancing Fees.
From when you decide to Sell, Purchase, Tranfer or Re Finance your property, we are here to help. We have a proven track record for over 10 Years in Scottish property (Residential and Commercial) of helping save thousands of pounds. From help to appoint an Estate Agent, Negotiation Tips, Legal Guides and practical advice. Just drop us an email or phone or if easier read through our extensive Online Guides.
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Knowing & Asking Is Always Better Than Assuming What Is Happening.
Assumptions create 70% of all conveyancing stress and issues. We make assumptions every minute of every day. Something happens and we instantly assign meaning to it. That is an assumption. Yet conveyancing and the residential legal system in Scotland is constantly changing and so does what your solicitor is reqired by law to do and what is required of you. We start imagining and reasoning what is going on, we look at social media and ask friends, what they think, what they experienced. We rationalise an entire assumed story based on assumptions and we believe it. One assumption leads to another assumption; we jump to conclusions and we take it personally. Almost all conflicts and desisions we take are based on assumptions. Assumptions are nothing more than false stories that we are telling ourselves. They create a big drama for no reason because they aren’t based on fact. If you really want to avoid the stress of moving, ensure that your experience is a possitive one and you are informed, why not just ask your property solicitor?