Advice on buying a brand new home > General discussion

Had the keys since August

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Lily70:

--- Quote from: New Home Expert on February 09, 2015, 08:24:09 am ---Anyone buying a new home should note it is a common standard condition that Exchange of Contracts is required to take place within 28 days of reservation.

--- End quote ---

If completion date is more than 6 months away then the early reservation suits cash buyers only. Builders should not accept reservations from people buying with mortgages.
Anyway, in case of Simon987, they paid reservation fee in November 2013 and did not start legal buying process until March 2014.

New Home Expert:
True most mortgage offers expire after six months so in theory, a new home buyer runs the risk of not actually having a mortgage agreement, if the home is not built longer than 6 months from Exchange of contracts.
If completion only suits cash buyers if prices are rising whilst the home is being built. 
They can (and have), just as easily fallen in the that time too!

Simon987 did an "early bird" reservation. This is not a true Reservation, but a first refusal once the property is released for sale. At that time Simon987 wouldn't have known what the selling price would be as it was not released hence the "Early Bird"

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