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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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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:

FTEngineerM · 17/03/2021 10:38

Why should people not speak to the seller directly?

You can go in the house with the seller there ask as many questions as you want for free then decide what you want to go through the solicitor with.

Not every question is worth getting iron clad guarantees from the solicitor on.

Kissingspines · 17/03/2021 10:43

Probate sale - the buyers didn’t complete on the day and the solicitors told them immediately that daily interest would be added, they coughed up a few days later. If it had been in a chain then it would have been a disaster!

Felifox · 17/03/2021 10:45

My sympathies to you as you must be feeling extremely stressed. What situation are you in with your buyers if you needed to delay completion on your sale? If you have to pull out you would be facing penalties to your buyer as well. While your deposit is protected it's no help to you if your seller is unable to pay interest and costs.

Block the seller, contact the estate agent for the vendor and your solicitor

I live in Cornwall where there is very little rental property. House prices are bouyant and many buy to lets are being sold.

Disfordarkchocolate · 17/03/2021 10:50

He's probably just looking to extend the completion date. I'm sure there are other rentals available, they probably aren't as convenient for him.

Stratfordplace · 17/03/2021 10:51

Kissingspines that’s fine if it’s a sale through Purple Bricks. However, if the sellers are paying and estate agent then the buyer should direct all queries through them. That’s what their fee is for to negotiate the sale.

lljkk · 17/03/2021 10:57

Our buyer lost mortgage between exchange & completion; we were not out of pocket so just asked them to cover solicitor's fees to sort it all out. That was still £800 & buyer (lived 5 doors away) didn't really speak to us afterwards (!)

GabsAlot · 17/03/2021 11:00

They can but it will cost them and then you'll have to compensate your buyer if you then pull out aswell

tell him its not your problem and to find somewhere else to live even temprarily

sanfranfibber · 17/03/2021 11:06

There is a lot of incorrect information on this thread. As a seller they haven't paid a deposit, so that has nothing to do with it.

If a seller pulls out after exchange they are liable for the costs incurred by the buyer, which is usually their solicitor’s fees, any mortgage arrangement fees, search and survey fees.

Original poster

SaveMyGrass · 17/03/2021 11:13

@sanfranfibber this is my huge concern, there don't seem to be any huge ramifications for them. As you say our legal fees which are a few thousand, our survey, our removal fees which we have to pay 7 days ahead. So in the event you were going to make yourself homeless by proceeding you might think what the hell and do this.

OP posts:

Bilquis · 17/03/2021 11:28

They can but they will lose their deposit paid to your sols and will need to cover all your legal fees and out of pocket expenses.
So if you have to pull out also because of them you lose your deposit they have to also pay this along with all fees incurred with your purchase and sale
Has your solicitor not discussed all of this with you.

CassandraCross · 17/03/2021 11:30

[quote SaveMyGrass]@sanfranfibber this is my huge concern, there don't seem to be any huge ramifications for them. As you say our legal fees which are a few thousand, our survey, our removal fees which we have to pay 7 days ahead. So in the event you were going to make yourself homeless by proceeding you might think what the hell and do this.[/quote]
You presumably paid a deposit on Exchange to the person you are buying from, this will have to be returned to you, plus the expenses you have incurred. The seller could also be sued for Breach of Contract but as others have said this really only benefits solicitors although he would have to pick up your costs there too, it is worth pointing that out to him as he stands to lose more than just a few thousand.

It will also cause problems for the people buying from you, whether he would liable for costs incurred due to that I don't know. Speak to your solicitors they are the ones who can apply the pressure and resolve the issue.

MiniCooperLover · 17/03/2021 11:32

It sounds more like they want an extension between exchange and completion rather than a complete pull out. What have they actually asked for?

Bilquis · 17/03/2021 11:32

Sorry just realised it is the people you are buying from, not your buyer that has pulled out

2bazookas · 17/03/2021 11:56

They should be able to find another rental, surely.

WaterBottle123 · 17/03/2021 12:10

Tell your seller to woman up and get an Airbnb.

Malbecfan · 17/03/2021 12:15

There was a long thread on this over on MSE several years ago whereby a buyer was in your position. Their solicitor advised something called specific performance where the seller was given something like 10 days to get out. The ramifications for that buyer were not terrible in that I think they had somewhere they could stay. However, the seller refused to move, they sued and received a lot of money.

Karma was done when they found a better/cheaper house and had an expanded deposit, but there was a lot of stress.

I hope I have remembered this correctly. If you want to PM me, I can remember the poster's name so you can search it out.

steppemum · 17/03/2021 12:15

@Stratfordplace

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.

I am sure this is incorrect.

but I am not a solicitor.

My understanding is that the contratc is legal, from exchange, so if they pull out they incurr penalties.
(if it was your buyer pulling out, even if the deposit hasn't been paid, they lose it if they pull out after exchange, so they owe you that money, but here the OP is the buyer.)

The date of completion is in the contract. They cannot change it now. From the date of completion the property is legally yours and you have right to vacant possession.

Get your solicitor on to this ASAP, and make them make it clear that they have to leave.

Of course they could decide to pull out of the sale completely, but your solicitor needs to make it clear to them how much it would cost them

Thepilotlightsgoneout · 17/03/2021 12:48

There are loads of ramifications for them! They have entered into a legally binding contract with you and if they do not complete on the given date, they are in breach of contract.

You would sue them accordingly and expect to a) recover your deposit, costs and reasonable losses then walk away or b) sue for specific performance i.e. force the sale to go through.

The reality is, even though you would likely win, all that will take months of solicitors fees and court hearings, with no guarantee that he’ll be solvent as the end of it to actually pay you.

But having your solicitor threaten all the above should be enough to focus his mind on finding a new rental.

Barton10 · 17/03/2021 12:54

You will be entitled to get your deposit back and you can sue him for losses incurred by breach of contract including all legal fees etc. His solicitor will advise him against doing this. You can vary the contract to change the completion date post exchange with a long stop date of say no later than 30 June when the Stamp Duty holiday ends. It really is a shitty thing to do though moving is stressful enough. Get your solicitor to write his solicitor a letter to find out exactly what is going on. Good Luck.

CassandraCross · 17/03/2021 13:24

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

Are you sure about this? The deposit is part of the Exchange of Contracts, If you are buying you pay it. I can't imagine anyone would be fool enough to Exchange Contracts without the deposit and I can't believe any solicitor would be so lax as to allow this.

MiniCooperLover · 17/03/2021 16:14

A lot of people's deposits are paid within the sale monies from their house so it's an understood deposit rather than a physical handover. Generally the only time you physically pay a deposit is for the first time you buy. After that the deposit is understood within the sale funds.

Skysblue · 17/03/2021 16:31

Can’t believe how many people have misread the OP 🤦‍♀️

Get your solicitor on it asap OP. It will very likely be fine because if they don’t complete on time you can sue. Your solicitor will be able to advise you on the specifics.

They need to put their stuff in storage and find another rental / hotel.

user1471505494 · 17/03/2021 17:35

@Stratfordplace

We are selling through Purple Bricks and their solicitors are absolutely dreadful. Luckily there has been excellent communication between us and the our buyers otherwise the chain would have collapsed

PixiKitKat · 17/03/2021 17:52

Do you have a buyer for your house or are you a first time buyer?

If your seller fails to complete on time it could have a knock on effect for the whole chain where you could be sued by your buyer if you then fail to complete.

Original poster

SaveMyGrass · 18/03/2021 09:43

We have a buyer for our house too. I have alerted my solicitor and am not going to engage in any further direct communications. Thank you everyone.

OP posts:

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