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AIBU?

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Original poster

to ask if it is possible to pull out between exchange and completion

52 replies

SaveMyGrass · 17/03/2021 09:27

We exchanged contracts last week on our house (selling and buying).

There were a lot of last minute difficulties in getting this over the line.

I have just heard from the person we are buying off that their rental they were going into has fallen through and they have nowhere to go.

Can they pull out between exchange and completion, I am so so stressed about this now.

OP posts:
DenisetheMenace · 17/03/2021 09:28

Which country are you in?

BloodyCreateUsername · 17/03/2021 09:28

Unless they want huge financial ramifications they can’t pull out. Exchange of contracts is legally binding and would see you at very least get a hefty sum of money in the event they did pull out.

Original poster
SaveMyGrass · 17/03/2021 09:30

@DenisetheMenace UK

OP posts:
skeggycaggy · 17/03/2021 09:31

The rules are different for the different nations of the U.K.

steppemum · 17/03/2021 09:33

If you are buying, you lose your deposit.
if they are selling, they must return your deposit, but there are ramifications for them beyond that.

It is a massively stupid thing to do. Their lawyer will be telling them that I hope

Original poster
SaveMyGrass · 17/03/2021 09:33

Sorry yes they are, we are in England

OP posts:
hashbrownsandwich · 17/03/2021 09:33

If in England then they could pull out but the financial implications would be a hell of a lot, it's usually 10% at least.

PlanetPuddle · 17/03/2021 09:35

They can but it will cost them a fortune. I imagine they will be scrabbling around to find something else.

Original poster
SaveMyGrass · 17/03/2021 09:36

Thank you everyone, I am feeling a bit reassured. This whole process has been horrendous, I thought I would feel relief after exchange and I did over the weekend till this morning.

OP posts:
FridayNightAtTheBronze · 17/03/2021 09:37

After exchange there is a penalty for pulling out. I can't remember the specifics, but when we sold 6 years ago it was about 10-15% of the purchase price.

It's very unusual for anyone to do this as it will cost them a lot of money.

2ndtimemum2 · 17/03/2021 09:56

Op I think they were probably hoping you would offer to let them stay longer rather than they intended to pull out! Very strange that you had direct contact with the seller though I always thought communication was through solicitor and auctioneer

steppemum · 17/03/2021 09:59

deposit is usually 10% of purchase price.
That is handed over on exchange.
They lose that, they don't get it back. You get that.

steppemum · 17/03/2021 10:00

Oh sorry, wrong way round as you are buying from them

KarmaStar · 17/03/2021 10:00

A relative sold her house recently and her buyer had the same problem so went with her car into an air b&b for a few weeks.

Original poster
SaveMyGrass · 17/03/2021 10:01

Thing is he hasn't paid a deposit as he is just selling and moving into rental....we are the ones who have paid a deposit.

Yes long story why he has my number.

OP posts:
skirk64 · 17/03/2021 10:04

He can pull out but you can sue for breach of contract. You would be able to claim your deposit and any fees paid to date, plus any reasonable losses.

Financially, he would be better off putting his stuff into storage and living in a Travelodge for a couple of weeks until he can sort out another rental.

PlanetPuddle · 17/03/2021 10:05

I would ask he does all contact via the solicitors

SionnachGlic · 17/03/2021 10:06

Likely they are forewarning that the closing date might need to be delayed until they find a substitute rental. If they tried to rescind contract (for a reason that is not specified in the contract itself), you could sue them for specific performance & force the completion.

Stratfordplace · 17/03/2021 10:12

A lot of buyers do not give a deposit on exchange.

If no deposit then I think they can pull out of the contract. It depends on whether the buyer wants to sell his property. I wish people would realise the financial implications of suing, the only real winners are solicitors. It’s time consuming and very expensive with no guarantee of winning.

minniemoocher · 17/03/2021 10:17

These circumstances do happen, if completion can be delayed by a week consensually then this is sometimes agreed, more typically they would find temporary accommodation

MsHedgehog · 17/03/2021 10:19

If you’ve paid a deposit to them, then they would have to pay your deposit back, with interest I think.

Bluntness100 · 17/03/2021 10:23

He can yes. But he’s going to be liable for whatever was on the exchange contracts, so usually ten percent and all costs. It’s an enormous cost and is why it’s so so rare for it to fall through after exchange. Your solicitor will serve proceedings and get your money if he does.

mindutopia · 17/03/2021 10:24

Surely, it would make a lot more sense for him to sort out short term accommodation (a hotel?) and put all his things in storage than to pull out of a sale that has presumably taken months and months to get this far.

Our vendors pulled out just before we exchanged and it was a nightmare as no legal recourse at all for us, even though we had spent 5 months paying for conveyancing and had sorted school applications and paid deposits on childcare, etc.

Can he move to an Airbnb for a month or can you adjust the completion date?

Dobbyismyfavourite · 17/03/2021 10:25

OP word of warning if the seller is discussing this with you directly insist that they go through solicitors.

An elderly relative who was recently widowed gave my number and their own to their buyer as I was dealing with the sale of their property. The buyer was so unreasonable and caused a whole extra layer of stress by constantly calling.

Roselilly36 · 17/03/2021 10:28

Technically they can, however, they will suffer financially if they do, their solicitor will strongly advise them not too.

We had a buyer try this after exchange, many years ago, they did complete. Try not to worry. If they don’t complete, it will cost them dearly. Speak to your solicitor.