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Property/DIY

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Original poster

Exchange and complete 3 months apart

10 replies

NoPlanYet · 13/05/2016 08:31

Seller at the top of the chain is a dithering arsehole keen to exchange soon and complete in 3 months. Various reasons about pulling out of his onward purchase and hoping to find another so he can be close to his own complete and not have to move into his daughter's for more than a few weeks.

However he's already messed the chain around lots and has offered us a completion date so that we have something concrete we're working towards rather than it all being open ended.

Is it possible to have a complete date iron clad as part of exchange so that regardless of his situation he will definitely be gone by completion day?

And any thoughts or normal processes about deposit etc on exchange? I'm not keen to have loads of cash (10% would be 60k) tied up for 3 months. I'd only be happy to do this if the sale was really nailed on and would 100% definitely happen in 3 months.

As it is it seems we'd be making a huge financial commitment while top of the chain guy makes zero financial commitment. In the unlikely event either DP or I lost our jobs we'd lose the 60k - is this correct?

Grateful for advice from anyone who's been in a similar position and/or who knows about the legal side of this.

Thanks.

OP posts:

MumOnTheNurseryHunt · 13/05/2016 08:36

Hi, we've just exchanged contracts (hooray!) and as part of that we (the buyer) had to agree with the seller the completion date which got written into the contract. If either of us for whatever reason fail to complete on that date then whoever pulls out has to pay penalties and also interest. Neither of us are in a chain though. Hope that helps? There may be someone with more experience with some other thoughts or advice though.

Spickle · 13/05/2016 10:12

MumOnThe is correct. Completion dates are agreed between all parties - it forms part of the contract and is legally binding from exchange. Anyone pulling out after that point will lose their 10% deposit.

specialsubject · 13/05/2016 10:13

Exchange does commit to completion date and he will have to leave on that date.

whattodoforthebest2 · 13/05/2016 10:17

You can negotiate on the deposit amount. I'd make it much lower simply on the basis that you're doing him a favour which only benefits him and as such, you'll only pay £10k for example. As you've said you're taking a risk purely to help him out.

Spickle · 13/05/2016 10:32

Yes you can offer a lower deposit. Be aware though that no matter what percentage of deposit you give, if you are the one to pull out after exchange you are liable for the full 10%.

rumbelina · 13/05/2016 10:55

Check the expiry date of your mortgage offer!

Original poster

NoPlanYet · 13/05/2016 11:09

Thanks all, very helpful!

The expiry date should be fine because this is a brand new mortgage offer we only got in the last few days as our buyer pulled out so we're now keeping our flat to rent out and converting it to LTB / taking out a much larger mortgage for our purchase.

And this si the third buyer to pull out and also our third attempt at an onward purchase!

Yes, it's been one of those nightmare scenarios you hear abput and hope doesn't happen to you...

Good to know we can push for a much smaller deposit to go up the chain.

I am never ever ever ever moving again!

OP posts:

ThroughThickAndThin01 · 13/05/2016 11:20

We exchanged on our house with a three month completion.

We were moving out of London to the country, and wanted to move in the summer so our kids could start at their new schools at the start of the new school year in September. We put our London house on the market in the February thinking it might take a while, got first time buyers immediately but couldn't find anything in our new area. They were ready to exchange very quickly, so we exchanged with them with a July completion date, without having a property to buy. We were prepared to rent if we couldn't find.

Good luck.

Original poster

NoPlanYet · 13/05/2016 13:18

Now I've just seen a headline in the guardian about how if Brexit happens house prices will plunge.

I'm sure it won't happen, but I'm slightly nervous that just in case it does I'll be bankrupt! I think insisting on a small deposit is essential in these circumstances. Bloody man changing his mind for the second time

OP posts:

catgirl2 · 14/05/2016 08:14

We are in between exchange and completion on a five month gap between the two. Has been fine, seller asked for the gap and we then had to find buyer for ours who would do same. We agreed completion date on exchange. Has been nice for planning purposes although has felt like a long time coming! We had to insure our new place from exchange date but your solicitor can advise you on that. Good luck!

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