Fixed Price contract? maybe not

bullrunner

Hi

I am trying to buy a house in a new housing estate in celbridge. I have signed my side of the contract. However, my solicitor spotted a clause in the contract which basically means that the builder can pass any increase in costs on to me....meaning that the advertised price may not necessarily be the final cost to me. While my solicitor deleted the clause from the contract and sent it back to the builder, they returned the contract unsigned and said this clause must remain. We also had the estate agent ring us looking for 1500 EUR for a 'layout change' that the builder wanted to make!

Has anybody else had problems like this?

Unfortunately, it's a standard condition in the Law Society/Construction Industry Federation building agreement, and appears in all transactions for new houses - it's General Condition 6.

Of course, all Solicitors for Purchasers ask for it to be removed. Many Vendors will and are happy to take their chances. Some will allow the removal of that part of the condition which allows them to pass on increases in the costs of fuel labour or materials but retain that which allows them to pass on increases in VAT. A growing number are saying take it or leave it, particularly after a VAT increase a few years back when no exemptoin was given where contracts were already signed, meaning a lot of developers were caught out where they had agreed not to pass on the increase.

yoman

Hey I just bought in a new housing estate in celbridge and solicitor never mentioned that clause, whcih one did you but in cause there is lots of new estates popping up there by the looks of it.

Lex Luthor

bullrunner wrote:

Hi

I am trying to buy a house in a new housing estate in celbridge. I have signed my side of the contract. However, my solicitor spotted a clause in the contract which basically means that the builder can pass any increase in costs on to me....meaning that the advertised price may not necessarily be the final cost to me. While my solicitor deleted the clause from the contract and sent it back to the builder, they returned the contract unsigned and said this clause must remain. We also had the estate agent ring us looking for 1500 EUR for a 'layout change' that the builder wanted to make!

Has anybody else had problems like this?

Bullrunner, ya this is a standard clause put in every contract by vendors...I am in the process of buying a new property at the moment and my solicitor pointed out this clause to me about 6 weeks back. I wasn't going for it so I asked him to ask their solicitor for it to be removed, otherwise I wouldn't be proceeding with the sale. To make it favourable for them I had my solicitor tell them that he was holding my deposit and we were ready to sign after this clause was omitted.
Came back on Monday with the clause removed from their side. Stick to your guns.
What the Fcuk is a layout change? Did they specify?
Who's the builder?

Yoman, fire that solicitor.

bullrunner

solicitor orginally crossed out the 'increase' part of the clause...but they said no deal..sign or we get somebody else....so we're pretty much stuck with it!


layout change= moving wall 5 inches and rearranging a bathroom (different positioning of bath etc)

Victor

bullrunner wrote:

layout change= moving wall 5 inches and rearranging a bathroom (different positioning of bath etc)

Thats bull, any such change would be done to save money on the builder's part (e.g. shorter pipe runs for the plumber). No sane person would change something like that if there was an increase in costs.

The only exception being someone screwed up and either designed or built it wrong - not your problem to solve, unless you caused this.

bullrunner

i fully agree...previous layout was a bit mad...bath ran along the lefthand wall and toilet was at the end of the bath on the lefthand wall also...

now bath is under window...toilet is between bath and sink...more user friendly.

Victor

Victor wrote:

not your problem to solve, unless you caused this.

Yeah, but they can still just say 'look, don't worry about it at all, we'll find someone else' until they sign the contracts...

Lex Luthor

bullrunner wrote:

now bath is under window...toilet is between bath and sink...more user friendly.

if it can be done I'd have sink between toilet & bath

bullrunner

Deleted User wrote:

Yeah, but they can still just say 'look, don't worry about it at all, we'll find someone else' until they sign the contracts...

exactly...pretty much the problem...

stringy

I signed for an apt last wed, contract has that section broken in 2, one about increasing the price, which solicitor crossed out. The second was allowing for an increase due to a VAT increase, which won't happen by the time it's built, i.e. it's almost ready, so we left it in.

bullrunner

Stringy thats what my solicitor tried to do...but the builder sent the contract back unsigned due to this. Also after we have agreed to accept this clause almost 2 weeks ago, they have yet to sign the contract!

stringy

I'm waiting to hear back from the Seller/Builders, I'll let you know if they have accepted and signed or returned the contracts.