Dear all-

Just wondering if any of you out there have ever received compensation due to the completion of your new-build home being delayed.

My apartment has now been delayed by 4 months. Although the builder started off by being vague about the original completion date (Jan 05), I did at one point receive a completion date in writing (8th April 05). This date has now been delayed to mid-late May (with possible further delays to come!).

I've spoken to my solicitor about it, but he stated that the 'completion date' is the date at which we will receive NHBC certification to say that the build is complete- therefore, stricly speaking, the completion date of my apartment has not been delayed because the apartment has not yet been completed! (Nope, didn't make sense to me either!)

I've heard of 'friends of friends' that have received compensation for new-build home delays (such as upgrades to kitchen appliances and home furnishings etc that are provided by the builder), but I was wondering if any of you had had a direct experience with this.

Thanks a lot,

Lib1

It will very much depend on the paperwork that you and the builder have already signed.

Your own solicitor really is in the best position to answer these queries.

:)

I've just been on the snagging.org site and in response to a similar matter, the site owner replied:

"You can get compensation if they [the builder] serve notice, give you a date in writing for completion and miss the date. This is called liquidated damages and is also why they will only give you dates verbally".

See the full discussion thread at:
http://www.snagging.org/ftopict-14.html

I've received a written and formal letter from the builder stating that my apartment would be complete by the 8th of April. Although I mentioned this to my solicitor, he disregarded it. However, the letter now appears to fall under the 'liquidated damages' statement above.

In response to your comment that 'solicitor knows best'- I've had problems with the builder before and although my solicitor told me that there was nothing to be done, I've managed to get what I wanted by persuing the matter myself.

I chose my apartment 'off-plan' and on the plans, it had windows in the bathroom and kitchen. When they started to build the apartment (ground floor), I noticed that there were no windows in these rooms- only extractor fans. When I asked the salewoman about this, I found out that the builder had decided not to include windows during the building process and hadn't even bothered to tell me or the other owners about it! As my contract states that the builder can make changes to the plans as they see fit, my solicitor told me that there was nothing I could do about it. Long story short- after contacting the builder directly and kicking up a fuss, I managed to get them to reinstate the windows- People Power in action!

Lib1

Hi Lib1

Don't know if this will make you feel any better - we bought one of the new builds on Norfolk Park and ours was delayed 12 months!! When we paid our deposit in April 2003 we were told the block was due for completion in October 2003 - when it got to September and there weren't even foundations then we knew this was not realistic. We were then told December 2003, then February 2004, May 2004, July 2004, and finally we moved at the end of October 2004. At some point in the summer of 2004 the sales office even admitted that there was no point telling us any further predicted completion dates because they had no idea when the place would be ready!

We were told there was nothing that could be done because a date was never given in writing, and besides, even if we had a date in writing then this wasn't valid, as a date for legal completion can only be set once a NHBC certificate is produced, stating that actual completion is complete, so to speak!!

I understand how you feel - we were pretty annoyed with the whole thing, although it did give us time to save up for things we would have otherwise had to buy on credit, like new furniture and carpets. The really annoying thing was the money we lost on constantly having to arrange short term lets, because we were never in a position where we could confidently take on a 6 month lease as we were always potentially moving in a couple of months!!

Nightmare!!!!

Thanks Lycraclad,

Your message matches what my solicitor said about NHBC certificate of completion.

However, the letter that I received from the builder about the delay for my new-build says (and I quote):

"Your new home is now scheduled to be completed by 8 April 2005, with legal completion to take place approximately 2 weeks after that"

I know that you are not a solicitor (or you might be... who knows!), but does the fact that the builder states the intended date for legal completion (approx two weeks after the 8th of April) change anything? Could this be seen as misleading?

Lib1

Sorry Lib1, but I don't think the builders have committed themselves to anything. They've given you the date the building work should be finished (unfortunate - in terms of confusing you - that they've used the word "completed") and said that legal completion should be "approximately" 2 weeks after that. But the date for legal completion is not fixed until the builders' solicitor gives your solicitor formal notice to complete. They won't do that until they are sure the house is ready. (And then woe betide you if there's any delay on your part!!!!)

But I suppose there's no harm your making a big fuss to the builders about how you've felt misled and see if you get anything from them as a goodwill gesture!

All the best.

Hi Saurkraut,

I think you may be right, but I really wish that you weren't!

Ho-hum! I'll just have to try and tug at the heart-srtings of the builder and see if they'll offer me anything out of pity!

Lib1

its not legal until there is an exchange of contracts, from which new builds normally have to complete within 30 days. Im guessing you havent exchanged contracts yet?

I would suggest telling the builder its cost u extra money in renting or something, and would they consider fitting blinds to your flat or something!!

The procedure's usually a bit different when you buy somewhere that's still under construction. Once searches, mortgage arrangements etc are satisfied you exchange contracts in the normal way - at which point both buyer and seller are committed to the deal. But since the place isn't yet built, you can't at that stage put in a date for legal completion. So a formula is put in the contract saying that completion will take place (e.g.) 14 days after the seller's solicitor gives notice. Then everyone sits back and waits... and waits...

When the builder finally decides they've finished building, the NHBC checks things out and issues their certificate. THEN the builder's solicitor can at last serve notice of completion on the purchaser's solicitor. The date given in that completion notice is the legal completion date and it's only if that official date isn't kept that the issue of compensation arises. The buyer then has 14 days to scramble around organising their removals, finances etc (often the bank/building society surveyor will want to have another look to make sure all's ready before they'll release the mortgage funds).

Am I right in thinking that solicitors no longer have clients in for a long interview to explain what they're signing (see my whinge on Espadrille's thread)?! Buying property is such a huge commitment and most people don't do it that often. They deserve a full and proper explanation of what they're doing, surely?!!

Hope things get moving for you soon, Lib1, and that the builders look kindly upon you!

Hi-

Yep, as Sauerkraut said, I exchanged contracts last July(!!!), so I'm now legally bound to just sit down, keep quiet and wait for the builders to finish the place!

When signing the contract last July, my solicitor was very helpful and basically explained everything to me in layman's terms- I knew what I was letting myself in for and I expected delays to the build, but I didn't think the delays would take this long! I thought the fact that the builder had made the 'mistake' of informing me about the completion date of writing might have been a major gaff on their part- but that now is not the case. Bugger!

Lib1