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Original poster

I think solicitors have exchanged without my agreement

49 replies

Postapocalypticcowgirl · 08/08/2023 18:04

I don't want to give too many details, as this may be outing but to summarise:

-First time buyer, put an offer in on this property in a few months ago. Sellers needed time to find somewhere to move to, I was quite patient with this. A few weeks ago, they found somewhere to move to, and suddenly there was lots of pressure to get everything sorted, even though it really wasn't an ideal time for me for various reasons. Still, I tried to get everything sorted with my solicitors as quickly as I could, and they also resolved an outstanding issue from searches.

-I was on holiday last week, and raised concerns around the time frame etc with my solicitors. I was told it would all be fine. I asked what I needed to have in place before I went away, and organised everything they asked for at this time.

-I was asked by my solicitors to come into the office today, to sign the last bits of paperwork. During the meeting, it wasn't mentioned that we'd be aiming to exchange today, just "as soon as possible".

-When I returned home, I had an email saying that if I had the remainder of my deposit available, then we could exchange today. I rang, and explained that due to some of the money being in an investment account, I'd need 24 hours to ensure funds have cleared in my current account etc. Solicitors said they'd speak to sellers solicitors, and ask to wait until tomorrow to exchange.

-I've had no further contact from my solicitors, but have had an email from the estate agents congratulating me on exchanging. I've called the solicitors and there's no answer, because I guess they're done for the day.

I'm really concerned that if there are any delays in clearing the funds, I'm going to become liable for interest on my deposit amount etc, even though I asked my solicitors to wait. I know I probably should have withdrawn the money before going on holiday, but I wasn't prepared for how quickly things would suddenly move- given I've been waiting months for this. Even in the middle of July, when I was asking if we could complete before the end of August, I was told that was a "possibility".

I know I've been a bit naive here, but surely my solicitors shouldn't have exchanged without written consent from me?

I'm in an absolute panic that something's going to go wrong, and I won't have the money available for Monday.

OP posts:
Knownoone · 08/08/2023 18:27

Postapocalypticcowgirl · 08/08/2023 18:04

I don't want to give too many details, as this may be outing but to summarise:

-First time buyer, put an offer in on this property in a few months ago. Sellers needed time to find somewhere to move to, I was quite patient with this. A few weeks ago, they found somewhere to move to, and suddenly there was lots of pressure to get everything sorted, even though it really wasn't an ideal time for me for various reasons. Still, I tried to get everything sorted with my solicitors as quickly as I could, and they also resolved an outstanding issue from searches.

-I was on holiday last week, and raised concerns around the time frame etc with my solicitors. I was told it would all be fine. I asked what I needed to have in place before I went away, and organised everything they asked for at this time.

-I was asked by my solicitors to come into the office today, to sign the last bits of paperwork. During the meeting, it wasn't mentioned that we'd be aiming to exchange today, just "as soon as possible".

-When I returned home, I had an email saying that if I had the remainder of my deposit available, then we could exchange today. I rang, and explained that due to some of the money being in an investment account, I'd need 24 hours to ensure funds have cleared in my current account etc. Solicitors said they'd speak to sellers solicitors, and ask to wait until tomorrow to exchange.

-I've had no further contact from my solicitors, but have had an email from the estate agents congratulating me on exchanging. I've called the solicitors and there's no answer, because I guess they're done for the day.

I'm really concerned that if there are any delays in clearing the funds, I'm going to become liable for interest on my deposit amount etc, even though I asked my solicitors to wait. I know I probably should have withdrawn the money before going on holiday, but I wasn't prepared for how quickly things would suddenly move- given I've been waiting months for this. Even in the middle of July, when I was asking if we could complete before the end of August, I was told that was a "possibility".

I know I've been a bit naive here, but surely my solicitors shouldn't have exchanged without written consent from me?

I'm in an absolute panic that something's going to go wrong, and I won't have the money available for Monday.

Hi, I don't think they can exchange without the exchange deposit. The exchange deposit is generally 10percent of your property value. It could sometimes be 5 percent if you have explicitly agreed the same with your and the sellers solicitors. Have you transferred your 10% deposit to the solicitors?

Knownoone · 08/08/2023 18:29

Postapocalypticcowgirl · 08/08/2023 18:04

I don't want to give too many details, as this may be outing but to summarise:

-First time buyer, put an offer in on this property in a few months ago. Sellers needed time to find somewhere to move to, I was quite patient with this. A few weeks ago, they found somewhere to move to, and suddenly there was lots of pressure to get everything sorted, even though it really wasn't an ideal time for me for various reasons. Still, I tried to get everything sorted with my solicitors as quickly as I could, and they also resolved an outstanding issue from searches.

-I was on holiday last week, and raised concerns around the time frame etc with my solicitors. I was told it would all be fine. I asked what I needed to have in place before I went away, and organised everything they asked for at this time.

-I was asked by my solicitors to come into the office today, to sign the last bits of paperwork. During the meeting, it wasn't mentioned that we'd be aiming to exchange today, just "as soon as possible".

-When I returned home, I had an email saying that if I had the remainder of my deposit available, then we could exchange today. I rang, and explained that due to some of the money being in an investment account, I'd need 24 hours to ensure funds have cleared in my current account etc. Solicitors said they'd speak to sellers solicitors, and ask to wait until tomorrow to exchange.

-I've had no further contact from my solicitors, but have had an email from the estate agents congratulating me on exchanging. I've called the solicitors and there's no answer, because I guess they're done for the day.

I'm really concerned that if there are any delays in clearing the funds, I'm going to become liable for interest on my deposit amount etc, even though I asked my solicitors to wait. I know I probably should have withdrawn the money before going on holiday, but I wasn't prepared for how quickly things would suddenly move- given I've been waiting months for this. Even in the middle of July, when I was asking if we could complete before the end of August, I was told that was a "possibility".

I know I've been a bit naive here, but surely my solicitors shouldn't have exchanged without written consent from me?

I'm in an absolute panic that something's going to go wrong, and I won't have the money available for Monday.

My guess is the EA assumed you guys have exchanged since they were communicated this date in the past by the solicitors.

IOnlycreatedaccountforthispost · 08/08/2023 18:37

Lawyer here - if you are only buying, and not selling, then they must have cleared deposit funds in place; usually 10% of the purchase price unless a lesser amount has been agreed. Please bear in mind that when you signed the contract you were giving authority to exchange, so unless you withdraw that authority it is open ended. If the solicitors exchange without cleared deposit funds, that is their mistake not yours. In reality normally the deposit funds to stay with your solicitors until completion so it won’t effect you even if you pay it later than anticipated.

worjen · 08/08/2023 18:54

I wonder if your estate agents just got the wrong end of the stick here and jumped the gun in sending the email?

Original poster
Postapocalypticcowgirl · 08/08/2023 18:59

So to clarify, I have given them 10% of the funds. However, I am lucky enough to be in the position of having a 25% deposit due to inheritance etc- so it's the remaining 15% of my purchase price that hasn't cleared in my bank account yet, but I assume needs to do so by Monday, or I'll be liable for interest on the whole deposit, I believe? I absolutely cannot afford this.

In my last email exchange with the solicitors, we had agreed they would ask the seller's solicitors if they could delay exchange until these funds were cleared in my current account- in theory this would be tomorrow, but I'm just concerned that something would happen to delay this.

OP posts:
Ihavekids · 08/08/2023 18:59

You haven't had confirmation from solicitors that you've exchanged? And you haven't transferred funds? I'm guessing you haven't exchanged and it's a mistake on agents part.

Original poster
Postapocalypticcowgirl · 08/08/2023 19:01

IOnlycreatedaccountforthispost · 08/08/2023 18:37

Lawyer here - if you are only buying, and not selling, then they must have cleared deposit funds in place; usually 10% of the purchase price unless a lesser amount has been agreed. Please bear in mind that when you signed the contract you were giving authority to exchange, so unless you withdraw that authority it is open ended. If the solicitors exchange without cleared deposit funds, that is their mistake not yours. In reality normally the deposit funds to stay with your solicitors until completion so it won’t effect you even if you pay it later than anticipated.

Would an email along the lines of "The remaining funds haven't cleared in my account yet, and I'd prefer to delay exchange until they have cleared" withdraw authority to exchange?

They have got the 10%, it's the remainder of the deposit (15% of the total purchase price) I need to clear in my account before completion.

I know it's my mistake for not withdrawing the whole amount from the investment fund before my holiday- and then I wouldn't be stressing about this.

OP posts:
PickledPurplePickle · 08/08/2023 19:01

You only need the rest of the deposit on completion then not exchange

Nobody can answer the question of whether you have exchanged or not apart from your solicitor

Original poster
Postapocalypticcowgirl · 08/08/2023 19:04

Ihavekids · 08/08/2023 18:59

You haven't had confirmation from solicitors that you've exchanged? And you haven't transferred funds? I'm guessing you haven't exchanged and it's a mistake on agents part.

I haven't had any confirmation from the solicitors that we have exchanged- the last email I had from them is them saying they would ask the seller's solicitors if they could delay exchange.

The reason I think it's not a mistake is because the estate agents said the seller's solicitors have told them we have exchanged.

I have transferred 10% of the purchase price to the solicitors, but I need the remainder of the deposit to clear in my account before completion.

OP posts:
Original poster
Postapocalypticcowgirl · 08/08/2023 19:08

PickledPurplePickle · 08/08/2023 19:01

You only need the rest of the deposit on completion then not exchange

Nobody can answer the question of whether you have exchanged or not apart from your solicitor

Yes, I'll ring them first thing in the morning! Unfortunately, this email came through after 5pm, so there was no-one available then.

I wanted to delay exchange until I knew the funds had cleared in my current account- I haven't withdrawn funds from this investment account before and I stupidly didn't realise they could take a few days to clear (although normally within 24 hours).

I'm aware I've been disorganised here, and will potentially mess everyone around, which I know is unfair of me. But equally, I have been patient (and paying rent) for months with nothing from the sellers!

OP posts:
Original poster
Postapocalypticcowgirl · 08/08/2023 19:10

Sorry, to clarify, if we have exchanged today, the agreed completion date is Monday 14th, so everything feels very tight. If we had two weeks to completion, I'd be a bit less stressed!

OP posts:
HackneyMum1 · 08/08/2023 19:15

Solicitor here too. Very unlikely that they would exchange without then passing the news to you immediately.

Knownoone · 08/08/2023 19:16

Hey @Postapocalypticcowgirl Now I get you. In our case we had 3 weeks between exchange and completion. We used this 3 weeks to withdraw funds from different sources and transfer to the solicitor day before completion.

LadyLapsang · 08/08/2023 19:17

You need to get the money ready for completion otherwise you risk an additional payment. Previously our buyer did not have the money ready by the deadline, noon if I remember so we did not complete until the Monday. The person we were buying from did not charge us - he had 3 properties, but our solicitor charged our buyer for the delay, which he passed to us.

TheMagicDeckchair · 08/08/2023 19:25

I’ve sold a couple of properties recently.

In each instance we have signed the contracts and returned to the solicitors. Then we had a discussion about exchange and completion dates, and solicitor puts forward a proposed date to the other party’s solicitor.

We then received a call on exchange date asking to confirm we are happy to exchange. After, solicitor calls and confirms exchange has happened. The same process happened on completion day.

It doesn’t sound like you have exchanged as in my experience there is no ambiguity about it. But only your solicitor can verify this.

Please update tomorrow after you’ve spoken to your solicitor.

Original poster
Postapocalypticcowgirl · 08/08/2023 19:33

LadyLapsang · 08/08/2023 19:17

You need to get the money ready for completion otherwise you risk an additional payment. Previously our buyer did not have the money ready by the deadline, noon if I remember so we did not complete until the Monday. The person we were buying from did not charge us - he had 3 properties, but our solicitor charged our buyer for the delay, which he passed to us.

I have closed the investment account today- I can't do anything to get the funds through any quicker. I am hoping they will clear tomorrow, but that's not guarenteed.

I know in retrospect, it's obvious I would need the money and I should have just closed it earlier- by keeping it open into August, I've earned a small amount more money, but it won't cover the additional charges I believe would be put in place.

OP posts:
Original poster
Postapocalypticcowgirl · 08/08/2023 19:35

TheMagicDeckchair · 08/08/2023 19:25

I’ve sold a couple of properties recently.

In each instance we have signed the contracts and returned to the solicitors. Then we had a discussion about exchange and completion dates, and solicitor puts forward a proposed date to the other party’s solicitor.

We then received a call on exchange date asking to confirm we are happy to exchange. After, solicitor calls and confirms exchange has happened. The same process happened on completion day.

It doesn’t sound like you have exchanged as in my experience there is no ambiguity about it. But only your solicitor can verify this.

Please update tomorrow after you’ve spoken to your solicitor.

I'll definitely come back and update!

In general, I feel my solicitors have been quite good, but I think they have been getting a lot of pressure from the seller's solicitors to agree to this completion date. It felt like everything was up in the air, and then today it was suddenly like "we can exchange now, and you just need to make sure the last of the money is ready to go".

I think it probably didn't help that I was on holiday last week, and missed some emails!

OP posts:
Original poster
Postapocalypticcowgirl · 08/08/2023 19:36

Knownoone · 08/08/2023 19:16

Hey @Postapocalypticcowgirl Now I get you. In our case we had 3 weeks between exchange and completion. We used this 3 weeks to withdraw funds from different sources and transfer to the solicitor day before completion.

If I even had a full week, I'd be less stressed!

OP posts:
MindatWork · 08/08/2023 19:36

Honestly OP, if you’ve not had an email from your solicitor you’ve not exchanged. Both times we’ve bought houses, it’s literally the first thing they do after it’s gone through.

I imagine the estate agent jumped the gun.

schloss · 08/08/2023 19:45

I would reply to the EA, copying your solicitor in on the email, saying you did not agree to exchange today due to ongoing discussions with your own solicitor.

That way the EA and your own solicitor will pick the email up first thing in the morning and your solicitor will update the EA when exchange has been completed.

AlltheFs · 08/08/2023 19:51

I move a lot. I have had a very specific phone call from my solicitors every time asking me to confirm I am happy to exchange. Followed by an email or phone call afterwards confirming it has happened. It has never just happened without this, regardless of the fact they have had the signed contracts for months.

If they haven’t done this then you will likely have grounds for recourse.

Careerdilemma · 08/08/2023 20:03

The solicitors knew you wanted to exchange onlg once the money had cleared. If they went ahead and exchanged anyway I would complain and ask them to cover any additonal costs incurred.

GrannyAchingsShepherdsHut · 08/08/2023 20:07

OP, are you conflating the exchange deposit of 10% and the mortgage deposit of 25%?

As I understand it (which is not necessarily correct!) the 10% would need to be with your solicitor at exchange, and the additional 15% would need to be with them for completion.

Mummyoflittledragon · 08/08/2023 20:17

When you exchange you have to agree a completion date. As a pp said, whenever I’ve bought a house (have bought several now), the solicitor will call me to confirm I wish to go ahead and exchange, then once exchange has happened, I will receive another call.

I would be surprised if you exchanged today op. Do you have a completion date?

CatsOnTheChair · 08/08/2023 20:21

It took 4 attempts to exchange when we sold (naive buyers) and on each attempt we had a call from the solicitor getting our explicit agreement to exchange.
I would hope it's the estate agent getting confused.

I would also email the solicitor and estate agents NOW saying you want confirmation of what has happened today. You may get lucky with one or both checking emails tonight - I had one very productive evening on holiday where both the solicitor and estate agent were clearly catching up, and got loads sorted!

I don't believe you would need all the cash available with the solicitor now - just the 10% exchange deposit, and the rest available for completion.

IF they have exchanged and agreed a completion date you can't make, I would push for them to cover all fees and losses from their incompetence.

Hope you get some answers soon.