Confused re exchange/completion?

[boymama82]

Could someone please advise? We offered on a house in April and it was accepted. We weren't in a rush to move as we were due a baby in July so wanted close family help until around august.

We signed the contract 3 weeks ago, we're cash buyers and so everything on our side was done but we still don't have keys! I've been in contact with our seller who is lovely and she said there's a delay further up the chain but what can we do? We're desperate to get in and settled now

So you have exchanged but not completed?

What does your solicitor say?

Signing the contract isn't the same as exchange. We signed our contract a week after we put our offer in to save time later on. The whole chain needs to be ready before you can complete although it's so frustrating waiting!

Presumably you’ve only exchanged. Get solicitor to chase up where the issue is. I’d have wanted a date for completion at exchange.
Congrats on the baby!

So you've done survey, searches enquiries etc?

Did the contract have a completion date on it?

You haven’t necessarily exchanged yet - your solicitor should have confirmed to you if you have. It’s not signing the contract that is exchange, and the solicitor could be holding it still. If you have exchanged you will have a completion date agreed (unless it’s a new build). Ask your solicitor for an urgent update as it sounds like they’re not keeping you updated at all.

Also have you been asked to transfer the money for exchange (deposit) or completion?

Have you actually exchanged or not? It's quite common to sign the contracts undated earlier on in the process, but doesn't mean you've exchanged.

You could ask your solicitor but they'll only ask the seller's solicitor who will ask their seller's solicitor etc. Does the seller have an agent they're using? Can the seller call their seller's agent to find out what's going on?

Essentially your seller or someone represting them needs to find out exactly what the delay is, how it will be resolved and some timescales.

I presume when you signed the contract you were asked NOT to date it. This means all you've done is signed the contract in preparation to exchanging.

You shouldn't exchange without a completion date.

All parties will exchange with a completion date, usually a week, or so, in between the two. Some people do exchange and complete in the same day but you can run into issues with removals etc if you're moving from one house to another.

Completion date is usually the day most people move on, especially if you're not first time buyers.

We are due to exchange tomorrow with a move date/completion date mid September

Have you actually exchanged OP or just signed the contract? It doesn’t sound like you have, as usually the whole chain needs to be ready, solicitor usually calls to get permission to exchange as all are bound from that time and home insurance needs to be purchased on the property you have brought. Completion date is agreed by all in the chain before your exchange.

You need to speak to your solicitor to find out exactly the cause of the delay.

Good luck & many congrats.

Also ask for details of what the delay is - for example if searches are late you’ll just have to wait but it’s not likely to be an issue, but if they (up the chain) are waiting for a mortgage offer it could be one. Basically you being cash buyers doesn’t really help speed everything up as there is a chain. Good luck!

It sounds as though you've not exchanged yet, if you had you would have been asked to agree a completion date.

You shouldn't be contacting the vendor directly, that's what you each have a solicitor for. Contact your solicitor to find out what is happening.

Have you paid any money yet? If not you’ve not exchanged or completed and remember nothing is binding at this point- your seller could still pull out. If you’ve paid a deposit you’ve probably exchanged but not completed. If you’ve paid everything you should have the keys.

I'd be on the phone to the estate agents and the solicitors to get them to find out what is happening . Don't both with contacting the seller, it sounds as if this is a chain that isn't properly moving yet, so you need the EAs and solicitors giving you information from further up the chain.

Solicitors all have all the contracts signed and then they all exchange on the same day to avoid you being stuck with two homes or none!

Completion is the day you usually agree to physically move

It sounds like the chain isn't ready to exchange yet. Your solicitor will just be holding your copy of the contract ready for exchange. At that point the deposit will be paid and you will have a date for completion. Completion is when you get the keys.

^this.

There is nothing you can do other than chase up your solicitor

OP, this is the process:

Once offer is accepted and generally survey done, the solicitor draws up the contract and will ask you to sign it, ready to exchange.

Exchange is when the solicitor gives your contract to your vendor, and puts your deposit in your vendors solicitors account. At the same time your vendor gives your solicitor their contract which says they will sell you the house.

If the vendors are buying another place, they likewise exchange contacts with their vendor and pay the deposit.

All these contracts have to be exchanged on the same day, simultaneously, because otherwise someone could be under contract to buy a house… but not have the money from their sale. Or else be left without a house. Hence a chain.

All the contracts in a chain will specify the completion date, the date when the balance of the money is paid and everyone in the chain becomes owner of their new house. Again, this will be the same day.

So while everything to do with the purchase of your house may be ready, other people in the chain may not be.

The EA should be giving you a regular update. Your solicitor should be able to tell you whether your own purchase is ready. Are the searches back, all enquiries answered etc. Ask your solicitor when you need to be ready to transfer the deposit.