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Original poster

Buyer refusing to complete

31 replies

katzensocken · 19/12/2017 18:30

Hi, this isn't regarding myself, but my DM who was/is in the process of selling and buying.

Her buyer was a bit dodgy from the start. Buyer's sister lives across the road from my DM, the sister was a little too involved with the purchase. She tried to get my DM to sell privately at a low price because her brother is a property investor. DM refused as the price was too low, planning to put house on the market officially. Then the brother himself came round and offered asking price, so DM accepted. He said he was a cash buyer.

There were quite a few delays over the weeks, his solicitors receiving no response from him with paperwork etc. Eventually it all moved ahead. DM found a house she liked and started that process as well.

Close to exchange, buyer's sister came round and asked DM if they could stall slightly because buyer wanted to get a mortgage approved. DM said no, because he said he was a cash buyer. After some deliberation this was accepted and sister went away. In the meantime, same buyer had agreed purchase of DM's next door neighbour's house (they've been on the market for years). So that process also began.

Fast forward to yesterday, the date of completion. No monies came through. DM had arranged removal van and everything was taken to new house, solicitor said monies should be in by end of day. This didn't happen. Vendor of DM's new house (already moved out) said she could put her things in the house and could stay over assuming completion happened the next day (today). Today, completion also didn't happen.

Solicitor tried and failed numerous times to contact buyer. DM went to see buyer's sister and she apparently couldn't get in touch either (though didn't sound surprised about non completion). Eventually got hold of buyer and he said he couldn't complete because his child is sick. This has been the excuse today too. Solicitor insisted he complete tomorrow morning and he said 'I'm not sure.'

I didn't trust him from the beginning with the stuff he tried to pull - but I'm not sure what he's planning to achieve right now, other than a reduced price at the final hour. I'm not sure if the costs incurred in failing to complete actually bother him (they don't seem to, as he has obviously been warned). There is also a chance he is still trying to get a mortgage, but obviously this wasn't agreed as part of the sale.

I'm just not sure where DM goes from here, other than waiting and relying on the solicitor. Obviously we can't force the buyer to complete, but DM is in a situation too. She can take her stuff back to the old house, but only later this week, and also return the keys (she is currently going to be staying at her sister's).

Obviously the vendor of her new house is very pissed off, he understands what the situation is, but either way he hasn't received the monies from DM.

Any advice, other than just waiting it out? I know where DM should stand legally, but what worries me is that this buyer is a seasoned property investor. I'm concerned that he's pulled this sort of thing off before and got away with it, or he wouldn't have tried it again.

Thanks in advance for any thoughts.

OP posts:
LittleLights · 19/12/2017 18:33

This reply has been deleted

Message withdrawn at poster's request.

CotswoldStrife · 19/12/2017 18:35

What proof of funds did the buyer supply for exchange of contracts? Or were they planning to exchange and complete on the same day?

It seems strange to get to the point of completion without proof of the funds (which is probably why conveyancers generally seems to advise against exchange and completion on the same day!).

It's a nightmare for your DM though, I hope she's OK.

Pixiedust1973 · 19/12/2017 18:36

Im a bit confused. Did they exchange contracts or was the plan to exchange & complete on the same day?

Original poster
katzensocken · 19/12/2017 18:38

Hi - they exchanged contracts a couple of weeks ago, so that was all sorted, assume proof of funds was fine and everything. I don't know the exact details but didn't hear of any problems with that.

OP posts:
874a · 19/12/2017 18:39

Your mum can claim any costs she's faced back from the buyer

another20 · 19/12/2017 19:42

I assume that buyer put down non refundable 10% on exchange - I assume that your DM gets to keep this and can claim any other expenses incurred ? I don’t know if she is then liable up the chain the same to her buyer. If he is trying to gazump this is usually done at exchange - if he tries this now ie negotiating the price down - and the chain agrees then I think that new contracts will have to be drawn up with the new price and exchanged again?

CotswoldStrife · 19/12/2017 19:45

My understanding is that the deposit is kept by your own conveyancer though - the money doesn't actually pass up the chain so they may not have the deposit in their client account, unfortunately.

I would be instructing the solicitor/conveyancer to sue them for the costs of removal (to new property, any storage fees and back to your DM's house) and any other costs she has incurred. I doubt he'll complete tbh and if it was me I wouldn't trust him!

ChampagneCommunist · 19/12/2017 19:52

Conveyancing lawyer here - she needs to instruct her lawyer to serve a Notice To Complete which gives him 10 working days to complete or he forfeits the deposit.

Her seller will probably serve the same notice on your DM.

Be aware that the days between Christmas & New Year count as working days even if your DM's lawyer is shut, so the buyer could send the money, be ready to complete & your DM would then be in breach of contract, as she didn't complete the sale.

This is why completing just before Christmas is a potential minefield.

She needs to ask her lawyer if the deposit was "Held to Order" and if so, it now needs to be sent up the chain.

specialsubject · 19/12/2017 19:54

If they exchanged they are committed and can be sued into oblivion for all costs.

Someone needs to get the actual picture from your solicitor. If they have cocked this up they will also be in trouble.

The phone needs to be red hot tomorrow. What a dick the buyer is.

ChampagneCommunist · 19/12/2017 20:22

No, you cannot "Sue into oblivion" You can recover properly incurred costs and losses only.

specialsubject · 19/12/2017 22:17

Yeah, OK, that's what I meant. I assumed the op was not so wet as to want stress compensation, but that she should not be out of pocket from a broken binding contract.

Anyone who wants that risk becomes a landlord.

Original poster
katzensocken · 20/12/2017 00:50

Thanks guys. I spoke to DM again earlier. Her solicitor has already served the buyer with a Notice To Complete. I have advised her to ask if the deposit was Held to Order when the solicitor rings her (hopefully first thing tomorrow morning).

Guess there's nothing else to do but wait!

OP posts:
fromtheshires · 20/12/2017 10:17

What an arse. This is why I didn't go with the investor when selling mine. They have no interest in the property so do shit like this as it's not 'their' house they have planned on their heads.

I'm glad there is a notice to complete put in place already, but get ready for some legal fun as you mum is in breach of contract and depending on the chain, everyone else will also be in breach. This means the costs travel down to the bottom issue with everyone suing each other for costs / deposit etc. Your mum will end up paying from the top down and then need to sue the person below her for all them costs plus her own. You will also need to speak to the sols about this and see if they will act for you if this happens

Original poster
katzensocken · 20/12/2017 21:07

Today's update: DM didn't hear much all day, but she went to drop off her new house keys at the estate agents. The vendor of her new house kindly said it's okay to keep her stuff in there as long as she's not sleeping over which obviously wouldn't be legal at this stage. So she's still staying with her sister at the moment.

Got some word from the buyer's solicitor who came out and said - as I had partially suspected - he's waiting 'for the mortgage payment.' So, before exchange, buyer's sister had requested that her brother obtain a mortgage agreement instead of paying cash as originally agreed. DM had said no. But he's gone ahead and done it anyway. Bear in mind he has been pursuing a mortgage for DM's neighbours' house too (with approval from them, in that case) so he must have put both applications in around the same time. Two legal processes going on must have slowed it all down which was why he's been dragging his feet I guess.

So it appears the mortgage is approved, since the solicitor mentioned waiting for mortgage payment. That was supposed to come through by 3pm today but DM didn't get any confirmation. I think her solicitor called her a little later but she missed the call and then the office was closed. So that could have been good or bad news, who knows.

After the mortgage payment goes through it's assumed the rest of the monies will be released, at least that's what we're being told. I'm not actually sure if buyer's solicitor has the funds ready to release already and just wasn't able to, everyone's a bit foggy on that point.

Two issues possibly: meanwhile, neighbours were meant to exchange today and didn't, I think... their completion date is tomorrow. Don't know if theirs will be similarly delayed (their moving van is coming tomorrow too) or if they will exchange and complete tomorrow in addition to my DM hopefully getting her funds through.

Other thing... I'm not sure if his agreement to buying in cash was legally binding? We still thought he was paying cash from exchange up until now, so I assume it was mentioned in the contract. If so that's another breach of contract for him and I don't know if there are ramifications for that too. I've only heard of people lying about cash before exchange then getting a mortgage before contracts are signed, not after. If anyone can clarify any points that'd be good, if not just a hand hold in the meantime while we wait for people to get their arses in gear.

OP posts:
BewareOfDragons · 20/12/2017 21:13

Yikes! Your poor DM!

Buyer is a massive jerk to have jerked people around like this. He's messing with people's lives!

I hope it gets sorted quickly.

GardenGeek · 20/12/2017 21:17

This reply has been deleted

Message withdrawn at poster's request.

Original poster
katzensocken · 20/12/2017 21:24

I know, I've been so angry on and off, trying to distract myself currently now we at least know something!

It is absolutely ridiculous and he'd better pay for it (literally and etc etc)

I'm planning to find out if and when the solicitor had the funds, if he had them before now he's going to get whipped for dragging it out.

OP posts:
CotswoldStrife · 20/12/2017 21:33

I doubt the purchase-for-cash would be legally binding - your mother can't say how he pays for the property. And there is a fair bit of paperwork involved in proving the source of funds to pay for property - it does make me think that he has possibly told his own solicitor he'll pay cash and then got a mortgage after exchange! I can't imagine his own solicitor would have exchanged contracts without proof of funds.

Good luck with sorting it out, I hope it all goes through tomorrow ASAP. Unbelievably stressful for everyone involved.

Original poster
katzensocken · 20/12/2017 22:58

Yeah I didn't think it could have just gone past the solicitor either (the cash/mortgage thing I mean) so he may have been none the wiser. Honestly if he'd said he wanted a mortgage from the very beginning I'm pretty sure my DM would have said yes at that stage, though he did make a huge point that he was paying cash, as an incentive so she wouldn't put her house on the general market. (She was just about to get it put on Rightmove, and buyer knew this because his sister is nosey and kept bugging for information even though she and my DM are not really acquainted - the sister only moved onto the street a few months ago). The idea being that selling privately would be less hassle. [canned laughter]

I'll come back tomorrow when I hear anything, thanks for the well wishes!

OP posts:
TheChineseChicken · 21/12/2017 06:37

This has made me so sad for your mum! What a horrible person. I really hope there is a happy ending to all to this Thanks

shortgreengiraffe · 21/12/2017 08:12

This sounds like a nightmare. Good wishes to your mum. She really needs to be by the phone all day and available to answer. Missing a call from the solicitor is likely to delay things longer. Good luck!!

CotswoldStrife · 21/12/2017 11:40

Hope it all goes through today for your mum, OP. Thinking of you all.

RandomMess · 21/12/2017 13:22

Just reading this makes me think I won't be rushing to move house!!!

Hope it all gets sorted asap Flowers for your Mum too.

Herbcake · 21/12/2017 13:30

Surely any mortgage would have to be approved and in place before exchange of contracts?

ChasedByBees · 21/12/2017 14:34

What a nightmare! Hope she's managed to complete now.