Fallen through on completion day

[catpoooffender]

Absolutely devastated. We're in the middle of a three house chain. Today we are supposed to complete and our buyers lenders have decided to do some compliance checks that may take up to nine working days. Removals company have just finished packing up the van. Cats are at cattery. Post redirected. We paid for the packing service. I hired an additional van to clear some stuff. I can't believe this can happen.

Thanks all.

They are only recommending simultaneous at the moment because of Covid. And my understanding is that if this had happened after exchanging, and we then failed to complete within the required timeframe, we could owe the people we're buying from money? It was definitely our solicitor pushing for simultaneous.

Our bank recently informed me that bridging loans during property transactions no longer exist.

unless buyers have enough money to pay cash for the place they are buying, before they get paid for the one they are selling, their lawyer has no choice but to arrange same-day completion dates.

We exchanged and completed on the same day due to COVID.
It was one of the most stressful mornings of my life having my entire house packed up but not knowing if it would actually go ahead.
I'm so sorry to hear this has happened to you.
Our movers said if it fell through at the last minute they would just have to unpack us all again.

OP - this is really sad, I really feel for you. I had a purchase fall through years ago on the day of exchange and it was awful. I can’t imagine what it’s like when your completing the same day too.

As for the same day advice from Law Society- it’s preventing one possible problem but causing others. Surely the law needs to change with something like no extra costs if you can’t complete due to Covid self isolation after exchanging...

@ @HooseDilemma@catpoooffender Yes, you could end up paying interest on the completion and covering costs. However, (I’m US trained and my area is international government representation, so definitely check this), that time is actually whatever both parties agree to. It’s become the norm that it’s 14 days. Better advice would be, upon exchange, self quarantine such that you don’t get screwed with completion interest.

Ultimately, I’d frame it as it’s better to have some protection and some responsibility, than no protection and no responsibility. If a solicitor isn’t willing/capable of thinking for themselves or talking through the options (especially in terms of the reasoning they’re doing during a pandemic) - they’re not a very good solicitor. Your solicitor should be pushing to protect you, and surely he knew about the problems the buyers kept presenting. Sounds like he stuck to the model as opposed to tailoring it to your circumstances.

Most solicitors are including a 'Covid clause' which allows for the possibility of delaying exchange if someone in the chain contracts Covid-19 between exchange and completion.

Unfortunately, as you have discovered, there is a great deal of risk associated with exchanging and completing on the same day, more risk than someone involved contracting Covid-19, imho.

I believe you’re only entitled to ckmpensation if you’ve exchanged - up to 10% of the house plus costs I believe if it falls through. A few years ago, we exchanged a week before completion. On the day of completion, our buyer didn’t get around to transferring the money in time (don’t ask - she was an awful buyer) and defaulted on fulfulling the contract. Thankfully we were moving into rentes and there was no one else in the chain, but still cost her about £500 extra in fees for breaking contract. If there had have been an upward chain, she would have been liable for our costs incurred, which would have been in the thousands.

I’m sorry you’re going through this.

FWIW I know someone who's purchase fell through after exchange. It happens so rarely there was still no legal recourse.

@Mildura

Our solicitor strongly advised us to do simultaneous

That's crazy! I'm so, so sorry for you. I really don't think your solicitor has advised you well here.

I don't know who I would ask for compensation?

There isn't going to be any compensation here I'm afraid. Prior to exchange anything can happen.

There were loads of posters on here starting threads about exchanging and completing on the same day... Seems post covid that this was the norm, just to speed things up.

So I'm not sure OP's solicitor has done anything out of the ordinary. But obviously this is a lesson for why people shouldn't take that approach.

Seems post covid that this was the norm, just to speed things up

It was the norm for a very, very short period of time when new Covid cases were running at several thousand each day.

That's no longer the case.

@PurBal that's not correct - after exchange you have legal recourse if things go wrong.

@Mildura According to other posters in this thread, it is still being recommended by The Law Society?

Does somebody have a link to the law society guidance? I want to understand if it is just guidance, or if these are actual rules.

That really really sucks OP

I'm so sorry

There was a thread on twitter the other day about the problems with simultaneous exchange and completion and the awful problems it is causing. I believe it's been suggested that it's another coronavirus related "thing"

It's usually only recommended if you are chain free and there's a cash buyer, neither of which apply here

I really hope you get it sorted

Can't even imagine this! So sorry!

Law society guidance basically means rules - you'd get roasted by professional standards if you didn't comply.

There's enough Covid around to risk track and trace/ symptoms needing self isolation for completion to be at risk... I know several people who've needed tests (negative) in the last week.

It's just guidance. The way our solicitor framed it was 'as a company, we are strongly recommending simultaneous exchange and completion. The next best option would be exchange the day before completion. Anything else would be your risk.' Our estate agent advised to exchange a week before, and when we told our solicitor this she said 'well he would say that as he wants to count your sale in his July figures'. Of course we decided to take her advice over his.

OP, the funny thing is that I queried with my solicitor if I could exchange and complete on the same day and she advised against it. Granted, this was before lock-down, but she still advised against that approach. We then tried to aim for a 2 day gap but in the end, it was 5 days.

Our purchase (rented to empty house) about 5 years ago, we definitely followed advice to avoid simultaneous exchange and completion. Sold completing in early June this year (empty as in rented due to relocation) and advice was simultaneous because of uncertainty caused by Covid. Same solicitor both times, different guidance!

Can't believe a Solicitor would advise you to move and pay for all removal vans etc. If you don't have a legal Contract. Makes no sense.

What's the risk of having a completion set a week or two after exchange? I can only think of positives?

Because if there was a week between exchange and complete and you had to self isolate or were COVID positive and couldn't move after exchange then you would be liable for costs.

@notheragain4 during Covid there are concerns that if someone comes down with Covid between exchange and completion it would mean the buyer couldn't safely move into the house. that's why they're suggesting that now

Banks can withdraw mortgage offers in between exchange and completion. That's why solicitors are currently advising simultaneous. On my recent purchase, my solicitor wouldn't let me exchange until my bank had confirmed release of funds.

This happened to us a few years ago. The whole thing broke down after we completed. Our van was packed and we were waiting to go. We got a call from the solicitors saying our buyer had had their mortgage offer withdrawn at the last minute. We lost everything. I hope this works out better for you.