What financial penalties do seller face to pull out after exchange?

[RockytheBasket]

If a Seller chooses not to complete after exchange, what penalty is there? Thanks

www.theadvisory.co.uk/conveyancing/exchange-and-completion/#anchor-8

“ As a seller, if you pull out, you are liable for the costs incurred by the buyer in the transaction to date, which is usually their conveyancing solicitor’s fees and the survey fee.”

Thanks a lot, very helpful

I think once you've exchanged you also loose your deposit as well as fees.

@SollaSollew

I think once you've exchanged you also loose your deposit as well as fees.

If you are selling you don't have a deposit

I think the sellers would also be liable for any increase in sales price for a comparable property. If the property is unique you can get a court order for ‘specific performance’ which would force the sale through. There’s a great thread on MoneySavingExpert where a user called WelshWoofs had their seller pull out just before completion. It ended happily despite the stress involved for the poster.

What about the expenses for everyone else in the chain? If the buyer then can’t complete with their buyer? Or has to sell and go into rented?

Eventually. But the way it would work is that the person at the top would have to sue their vendor who would sue their vendor and so on down the chain until the person who pulled out. Realistically though that person’s pockets are only so deep so they might end up going bankrupt. You can’t get blood out of a stone.