Q. I am trying to negotiate an offer on a brand new property directly with the developer. I have made an offer but subject to him laying high quality solid wooden floors in the bedroom instead of the carpet he was going to lay originally. He has agreed but says he won’t lay the wood flooring until after exchange of contracts and prior to completion. My concern is that once exchanged I am then contractually bound to complete and what if he doesn’t lay the wooden flooring, or worse still lays a very inferior wooden floor than agreed. What can I do to protect myself from this all going horribly wrong at the last post?
A. With any new build property I would always suggest a snagging list is prepared, once the house has been substantially completed and only minor details relating to finishing interior works remain. This list can then be included as part of the contract (if the works are not completed before exchange) to circumvent the usual contractual term that completion on a new build can take place notwithstanding minor snagging items are outstanding. You would then be in control and only obliged to complete once all the agreed work has been done. Similarly, as the floors would be put in between exchange and completion, then this can also be dealt with by an additional clause in the contract, which would state the floors must be put in to your satisfaction and would specify the type of flooring agreed. If the floors were not put in, or an inferior product used, then you would not be obliged to complete or hand over the balance of money until the contract term had been complied with. This would be a common clause as the seller would be reluctant to spend money putting in floors of your choosing if you had not already committed to the purchase because if you subsequently withdrew he would be left with that particular floor which he may not have chosen himself and incurred the full cost. It is a simple case of ensuring the agreed terms are reflected in the contract and in such a way that the obligations must be fulfilled prior to completion so you have the recourse to delay completion (without penalty or being in breach of contract) until the works are done, which would act as a big incentive for the seller to complete the works in good time.