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gruffydd

New Houses Paid For In Stages - And Non-refundable Deposits

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I've noticed alot of new developments down here being built in stages with buyers paying at each stage - base, walls up to roof, completed - is this common elsewhere and what do you lot think about this practice. Wouldn't you be mad to get drawn into this kind of arrangement????

Also noticed non-refundable deposits being requested by one of these builders - are these illegal??????

Edited by gruffydd

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I've noticed alot of new developments down here being built in stages with buyers paying at each stage - base, walls up to roof, completed - is this common elsewhere and what do you lot think about this practice. Wouldn't you be mad to get drawn into this kind of arrangement????

Also noticed non-refundable deposits being requested by one of these builders - are these illegal??????

I've only seen this in the Far East whereby 10% is paid on each stage. A lot of property is not 100% completed so ownership is not passed onto the buyer.

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Yes, I was rather surprised when I came across two developers working like this in this region. Perhaps this is the start of a new trend - and what on earth happens if the builder goes under prior to completion?

Edited by gruffydd

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Yes, I was rather surprised when I came across two developers working like this in this region. Perhaps this is the start of a new trend - and what on earth happens if the builder goes under prior to completion?

Ho hum, so the buyer is providing the working capital for these businesses.

Usually a bad sign.

Ok for a one off to your own specification where you are sure of the builder.

I would suspect that, if a properly drawn up agreement, non refundable deposit is legal.

However if the property ends up unfinished because the builder goes under you could lose deposit and stage payments.

Anything in NHBC about this because, iirc, no NHBC no mortgage. Architect's certificate will usually suffice in abscence of NHBC but again this is often for one offs.

Does NHBC guarantee to finish if a member goes under? However if the member hadn't paid the membership fees?

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  • 334 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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