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Original poster

To ask buyers to cover costs of delayed house sale?

124 replies

AbuelaGetTheUmbrellas · 08/02/2023 14:45

Would really appreciate advice on this. My husband and I sold our house STC at the end of last year. The house was up for auction. We sold it before the auction- buyers requested an extension on the exchange and completion date, which we agreed to. We exchanged a few weeks ago, and are due to complete tomorrow.

Buyers are now requesting a further 3 weeks extension on completion date as they have not secured their mortgage yet?! I think this is madness - they shouldn’t have looked at auction properties if they didn’t have the funds in place. They have risked their deposit by behaving this way. I’m not a Dick, so I’m happy to give them an extension rather than run off into the sunset with their deposit BUT I think they should cover the additional interest payments on our mortgage for the 3 week delay (it’s just under £2000). Is this a reasonable request? My husband is saying we should just absorb the cost ourselves!

OP posts:
DottieUncBab · 08/02/2023 16:49

I’d do this then, they aren’t a serious enough buyer if they’re this disorganised anyway. So I’d serve the notice.

DottieUncBab · 08/02/2023 16:49

DottieUncBab · 08/02/2023 16:49

I’d do this then, they aren’t a serious enough buyer if they’re this disorganised anyway. So I’d serve the notice.

Was meant to quote the advice from your solicitor to serve the notice to complete in ten days.

Leftbutcameback · 08/02/2023 16:50

Your solicitor can advise you on the possible options of delegated completion. That’s what you pay them for. They are contractually obliged to complete, and have put themselves massively at risk. You have the upper hand and shouldn’t be out of pocket.

Leftbutcameback · 08/02/2023 16:50

delayed completion

Helpmeoutforamoment · 08/02/2023 16:52

I suggest you read this thread, which was a very similar situation and took 9 months to eventually complete!! The never ending house sale! www.mumsnet.com/Talk/property/4692057-the-never-ending-house-sale

thirstyformore · 08/02/2023 16:56

Talk to your solicitor (who I think are suggesting issuing the notice to complete which triggers the time is of the essence requirement). You may be able to retain the deposit and/or claim damages. Not completing after exchanging is a breach of contract and like any breach of contract there will be a remedy in law. You just need to work out with your solicitor which route best protects you and adequately compensates you for your losses.

@Whatislove82 is talking codswallop. Wannabe lawyer at their best!! Ignore Grin

gogohmm · 08/02/2023 17:01

If you have exchanged and they don't complete on time you can seek compensation per day. In your circumstances I would offer the option of delaying the requested time on condition of the further payment by the end of tomorrow

Viviennemary · 08/02/2023 17:01

Why arent you taking advice from your solicitors. Thats what they are paid for. Of course they can't buy at auction then mess about delaying things.

Chickenly · 08/02/2023 17:09

I swear that there are posters who look for threads requiring a legal background just to aggressively assert incorrect legal answers. Baffling!

OP, I wouldn’t ask them to cover your costs. I would deny their request for an extension. They have 20 days from completion to actually complete (10 days from you filing a notice to complete and a further 10 days from you filing a notice of revision) and not lose their deposit and you’d be able to get your costs for that time covered under common law damages.

That means that, without you amending the contract, you’ll get either your costs covered or their deposit (or both). If you allow them the extension then they end up with, in reality, six weeks instead of three.

Chickenly · 08/02/2023 17:11

I swear that there are posters who look for threads requiring a legal background just to aggressively assert incorrect legal answers. Baffling!

OP, I wouldn’t ask them to cover your costs. I would deny their request for an extension. They have 20 days from completion to actually complete (10 days from you filing a notice to complete and a further 10 days from you filing a notice of revision) and not lose their deposit and you’d be able to get your costs for that time covered under common law damages.

That means that, without you amending the contract, you’ll get either your costs covered or their deposit (or both). If you allow them the extension then they end up with, in reality, six weeks instead of three.

Minfilia · 08/02/2023 17:12

It sounds like either their solicitor, or both your solicitor and their solicitor, has fucked up. No decent lawyer would exchange without proof of funds!

Serve them notice if you can and don’t feel bad about keeping their deposit if they can’t make completion. It will cover your costs. If it’s due to their solicitor fucking up - they can sue for professional negligence and recover their deposit. If it’s their fuck up and done maliciously then frankly they deserve to lose the deposit.

RubyPip · 08/02/2023 17:14

AbuelaGetTheUmbrellas · 08/02/2023 14:51

@Whatislove82 We exchanged a few weeks ago, the completion date is set for tomorrow. Dates are in the contract. My solicitor has already confirmed that we can serve notice on them tomorrow and they will have 10 days to complete or forfeit their deposit.

This.

Chickenly · 08/02/2023 17:16

Minfilia · 08/02/2023 17:12

It sounds like either their solicitor, or both your solicitor and their solicitor, has fucked up. No decent lawyer would exchange without proof of funds!

Serve them notice if you can and don’t feel bad about keeping their deposit if they can’t make completion. It will cover your costs. If it’s due to their solicitor fucking up - they can sue for professional negligence and recover their deposit. If it’s their fuck up and done maliciously then frankly they deserve to lose the deposit.

I would agree with this, although I’d also point out that a lot of residential conveyancing is done by “property lawyers” who are not qualified in any way, are not solicitors and are not what any lay person would consider to be a “lawyer”. (“Lawyer” isn’t a protected term, there’s nothing to stop a shelf-stacker calling themselves a “lawyer” if they chose to).

I think the most likely thing to happen here is: a) they don’t need an extension for the mortgage but want one for another reason and think that lying about the reason makes OP more likely to agree, b) they lied to secure their mortgage and now their lender has found out and rescinded their mortgage offer.

FeinCuroxiVooz · 08/02/2023 17:17

AbuelaGetTheUmbrellas · 08/02/2023 14:51

@Whatislove82 We exchanged a few weeks ago, the completion date is set for tomorrow. Dates are in the contract. My solicitor has already confirmed that we can serve notice on them tomorrow and they will have 10 days to complete or forfeit their deposit.

you would be reasonable to do this. Given that they are applying for mortgages anyway it's not going to be hard for them to add £2k to the amount they borrow, and the money you are losing is real.

If they can't arrange the mortgage you may have to re-market the property and it will cost you way more than £2k. they had no business bidding in an auction without having secured funds.

Dibbydoos · 08/02/2023 17:19

They have a choice, lose the deposit or hand over £2k? They hand over £2k. You've waited long enough and I agree the Re is option to negotiate but you are the ones losing out at their request.... so yes, bill them.

Chickpea17 · 08/02/2023 17:22

Whatislove82 · 08/02/2023 14:46

No chance of being successful op

You haven’t exchanged. They can walk away with a backwards glance or any cost

They have exchanged several weeks ago

Helpmeoutforamoment · 08/02/2023 17:24

Helpmeoutforamoment · 08/02/2023 16:52

I suggest you read this thread, which was a very similar situation and took 9 months to eventually complete!! The never ending house sale! www.mumsnet.com/Talk/property/4692057-the-never-ending-house-sale

Actually ignore me, just realised you already exchanged....sorry having a bad day!!

AfraidToRun · 08/02/2023 17:34

In these situations my OH is really conflict averse, he would do anything not to feel like someone is annoyed at him. I'm more pragmatic and think 2k costs is fair but would draw the line at keeping their deposits. They could be cfs or they good be first timers learning a very valuable lesson.

CrazyCorgi · 08/02/2023 17:34

Whatislove82 · 08/02/2023 14:46

No chance of being successful op

You haven’t exchanged. They can walk away with a backwards glance or any cost

They’ve exchanged. It literally says it in the first paragraph of the post.

Wonnle · 08/02/2023 17:44

What estate agent are you using ?

The ones I've dealt with want proof that the buyer has the mortgage in place before much happens

So your buyers have stuck 10% deposit down when exchanging contracts without having the rest of the money available then

Didimum · 08/02/2023 17:48

We’re due to exchange on our sale and purchase this week. We weren’t allowed to do so without all solicitors having mortgage offers in place and physical documents on their desks from the lenders. I don’t understand how you’ve been able to exchange if they don’t have a mortgage offer.

Mirabai · 08/02/2023 18:06

It’s unlikely have a mortgage offer they may want a better one.

This is what your solicitor is for OP, they know how to handle this.

Mirabai · 08/02/2023 18:07

Unlikely they don’t have a mortgage offer ^^

Blossomtoes · 08/02/2023 18:18

Hand it over to your solicitor at the same time that you hand them their arse for allowing the exchange without a mortgage in place.

Keepingthingsinteresting · 08/02/2023 18:42

Whatislove82 · 08/02/2023 14:48

Op muddied the waters by mentioning the auction

it didn’t go to auction

Show quote history

Bit of a dream of consciousness here…they have exchanged so will have a completion date in the contract- I would ask them OP as they have ducked you around and this is eating money from your pocket.