Conveyancer wants to exchange and complete on same day?

[LisaSimpsonsbff]

We accepted an offer on our house in March, and also had an offer accepted. It's been sort of chuntering on through lockdown though I've been more or less assuming that our buyers will come back with a lower offer and it will collapse. But we've now got to the stage that all that's left to do is the survey on the property we're (theoretically) buying, we've got that booked in and the conveyancer has asked us for dates for exchange if that comes back fine. When we went back with dates for exchange and completion she said that 'under the current circumstances' we have to complete and exchange on the same day and that that's what most firms are doing? Is this true? I really hate the idea, it leaves us so vulnerable to getting a cheeky demand for a price drop while surrounded by boxes with few options. I've asked the conveyancer to explain why they're saying this (and it wasn't phrased as a 'we recommend' but as a 'this is your sole option') but has anyone else been told this?

No, but I've always done both on the same day anyway and it's not at all uncommon. There was a thread here recently on the same subject so worth doing a search and having a read of that.

I think lots of firms are doing this but our solicitor has said we don’t have to. We are planning on a week in between. I guess it depends on what the whole chain agrees though.

Even before covid that wouldn’t be unusual. Once you’ve exchanged, your buyer is committed.

It’s to avoid the COVID clauses I beleive

Once you’ve exchanged, your buyer is committed.

But that's exactly what I mean - so they wouldn't be committed until moving day? I'll look for the other thread, thanks for that tip - I'm just confused because I've always heard before that this is not a great idea and a quick Google search just comes up with articles on why not to exchange and complete on the same day.

Due to the situation some lenders have been pulling out after the buyers have exchanged, leaving them in a difficult situation. So a lot more lenders are doing this now to prevent this from happening. Of course I get your point too though.

It's so if someone gets coronavirus and can't move house they don't lose their deposit.

I've had a bit of a look at Covid clauses - thanks for mentioning that, rebel - and this actually seems like a much better idea for us so I wouldn't want to avoid it! I'll wait to see what the conveyancer says but I'm really resistant to doing exchange and completion on one day because it's 'easier'

who pays who here?

I get the covid clauses. But with simultaneous exchange and completion you are adding loads of extra work and stress. You can't arrange mail redirect or broadband/phone as they need five days notice. Booking removals will be fun. You won't actually know you are moving until the day itself.

and your conveyancer won't have any of this...

Yeah, this is exactly what I think - I sort of get (now, the conveyancer didn't explain this at all, just said 'due to the current circumstances') the reason why they want us to do this, but it seems so risky for us, but very simple for them... We both work full-time and have a toddler, we can't be doing with not knowing if we're moving until the day we move!

Good point about the broadband. That's going to be a nightmare to arrange anyway - every time I've moved before we've had to wait for installation but if that happens this time we won't be able to work...

We are going for exchange and completion on the same day as the suggested COVID-19 clauses leave us vulnerable/disadvantaged in the sale. Re-negotiating will mean a lot of back and forth between us and our sellers and will cost more of our solicitors time. We have opted for exchange and completion as it's going to be simpler legally and less time consuming.

P.S. You can get broadband via a portable Mi-Fi 4G device as an interim measure. You can get them in phone shops online or on Amazon. Can connect up to 5 devices I believe.

Are you just buying, Sioux? I'd feel totally differently if I were a FTB, and so perhaps we'll find it hard to come to any other compromise and we'll have to do the exchange and completion on one day. As the middle of a chain, and the only ones who would actually have to move on moving day (the buyers live with family, our sellers have already moved out to rented) it just feels like a very vulnerable place to be.

Understood about feeling vulnerable as there are so many dependencies. The way I look at it is there have been both many successful and unsuccessful same day exchanges and completes and we all know they are really stressful. The new clauses are too new and have more uncertainty both because they are new and because they are trying to make an allowance for an uncertain time. So have opted for an approach that's been in use/around longer instead. Marginally less stress for our situation.
The answer to your question is yes, we are just buying as we sold our flat last October but hadn't found the right place to buy. To allow the sale to go through (best decision we made), we moved in with family. We didn't expect to be on lock down so it's a very tight squeeze with no garden so moving quickly is necessary! The COVID clauses suggested were in fact extending completion indefinitely as they were too open- ended. So many unknowns still so this was the best approach for us. God forbid the R rate goes up again!

PS just realised that's what happened on the sale of our flat. We did same day exchange and completion as that's what the buyer wanted. We had been in the process from April (accepted the offer then) and the sale only went through in October. It was to a FTB and their mortgage took ages as they had a joint mortgage sole occupant set up as their Dad was retired and their Uncle was stepping in to help.
Was just so glad of the sale going through finally