Exchange and completion / contracts

[Onmyleft]

Our solicitor expressed concerns about some of the clauses in the contract sent by the vendors solicitor. She did not go into detail but said she would not allow us to sign the contract unless the vendor’s solicitor changes them. The vendor’s solicitor has refused. From what I gathered, the clauses have to do with penalties and the percentage of these penalties if things do not go smoothly on exchange and completion which are to happen on the same day.

What has been your experience of this sort of thing? What should we be looking out for in this contract when we receive it and how likely are things to go pear shaped on the day? Why should we incur a penayand not the vendor?

We’re in the dark as to what the solicitors are at odds over and why. Is there a standard that is normally agreed. We thought that exchange and completion should be fairly straightforward and run of the mill type stuff.

No contract is completely standard (or at least incredibly rarely) as there are invariably special clauses even in the bog standard contracts. If solicitors have their own contract based on the standard terms, they also tailor them.

It sounds as though the other side has tried to put some punitive delay clauses in which your solicitor thinks are non-standard and too far in the seller's favour - but without seeing the clause (feel free to send me a pdf if you've got one), it's hard to say.

That said, if it's a simultaneous exchange and completion, then the scope for your not performing (ie paying the money) is pretty limited as your solicitor won't exchange if you can't also complete there and then.

@GU24Mum that’s very useful. I may well take you up on your offer tomorrow once my solicitor sends it over.

We didn't have any clauses like that from our vendor (and didn't ask for any from our buyer)in July.

It might be worth asking why they feel the clauses are necessary; what are they worried about?

Is there a reason you're exchanging and completing on the same day? (Other than Covid)

You need to ask your solicitor for details of what the clauses are and what their concerns are

Exchange and completion on the same day can be a nightmare , I've only done it when I've sold empty property , if it goes wrong it could mean someone is left homeless
Ask your solicitor for a week or two in between if possible

There’s no chain involved either side. Our solicitor got very exercised about these clauses. I am expecting to see the contract today. This thing is dragging on for so long that I am sick off it all. The vendor and I just want to get this over and done with but their solicitor has been slow to the extreme and ours have had their issues to but the vendor’s solicitor is beyond hopeless. He seems deliberately slow to the point where the EA had to call him out of his behaviour.

Still no progress today and no sign of the contract so I can’t even see what the offending clauses are. My solicitor said the ones in question relate to standard rates recommended by the Law Society (I might have gotten the relevant authority wrong). It’s apparently normally 4% but the vendors solicitor has increased it to 5% for no reason. Also he has altered the timings for things to happen within the day - a strict enforcement of 2pm completion. Our concern and that of our solicitor is the vendor’s solicitor has been notoriously uncommunicative and it is extremely difficult to get hold of him. It seems he deliberately makes it hard to get hold of him. The vendors have been at their wits end with their solicitor but I don’t know if they have asked for this change and if so why. We have been pushing to wrap things up and everything is ready to go. The vendors want to wrap things up too.

I’m thinking of pulling out because it is just too strange. Our solicitor doesn’t understand what is going on and thinks it is just unnecessary and odd. We are just fed up and feel that something fishy is going on.

I think tomorrow or Monday I’ll tell the estate agent that this has gotten too weird and it is stressful so we will pull out if the solicitor doesn’t stop playing games.