Costs pulling out after exchange if you are the seller?

Wuwvdk · 2023-10-21T22:59:24+00:00

We exchanged on our house two weeks ago but since then my partner has received a cancer diagnosis and I cannot see us being able to move. Plan was to move area but will have to stay put due to our support system. Yes, we can complete and try to buy again in this same area, we will have to as we have no choice but to stay put now. Can we as seller still pull out after exchange? If anyone has done it - how much did it cost you? My head is all over the place right now so just trying to figure out our options.

WhyArePiratesCalledPirates · 22/10/2023 00:03

That's awful news. I'm sorry this has happened you your family.
You're going to need to check the contract you signed.
It will cost you.
You have sold your house.
Read the contract. Talk to your solicitor.

stayathomegardener · 22/10/2023 00:04

I don't know but that sounds so stressful so wishing you both well.

NashvilleQueen · 22/10/2023 00:08

Sorry to read this OP and you definitely need advice.

Had you already lined up somewhere to go to on completion?

Original poster

Wuwvdk · 22/10/2023 00:19

Thank you, it's honestly all been too much recently. We have a rental lined up as our onward purchase isn't yet ready. I just don't feel like I can handle the move, DP is also totally in pieces.

It's so hard to find online what we are liable for, I know our buyers legal fees and conveyancing costs but not sure what else. I can't handle being sued by our buyers, as this is something that is too much to handle right now. But I also don't feel Ike we can go through with the move.

OP posts:

Silkiefloof · 22/10/2023 00:28

I think its normally 10% of the agreed sale price but check with solicitor. Sorry to hear about the cancer diagnosis. I had cancer so I understand the stress level. You can move hospitals even before you move areas, think GP refers. Only issue is if you are moving to a different health system so like to Scotland from England then you start the wait again. But it is worth being by a good hospital. You won't be liable for their legal fees etc I think but 10% can be a lot.

If the move still makes sense I would go ahead but if you can afford it get people to help with everything like packing and unpacking. I would also inform the other side so they are aware.

Silkiefloof · 22/10/2023 00:31

If you do move away and need help with transport etc the hospital can help. We didn't have any family nearby and it was OK. Though depends on circumstances but the most helpful people were people with cancer. There are a lot of charities that help to - Macmillan for counselling, financial advice, days out SomethingToLookForwardTo. There's a thread in life limiting called the storm which is for partners of cancer patients.

burnoutbabe · 22/10/2023 00:43

For the seller pulling out either they have to compensate the buyer for costa incurred. And return any deposit paid of course.

Or the buyer can issue a notice to complete and in theory sue to order completion (as houses are unique so you can't just get money). However it's rare a judge would order that the sale occurs unless very rare circumstances/house etc.

It's only the buyer that could lose their 10%/whatever is in the contract.

Twiglets1 · 22/10/2023 07:24

Sorry to hear that @Wuwvdk

You will need to phone your solicitor on Monday to get the full answer of how much it will cost.

Original poster

Wuwvdk · 22/10/2023 08:06

Thank you, I will call our solicitor tomorrow just not sure what to brace myself for.

OP posts:

Give0fecks · 22/10/2023 08:21

For sellers, it’s not that bad. You just need to cover their costs eg solicitors and surveys. Maybe £5k?

Frasers · 22/10/2023 08:23

Give0fecks · 22/10/2023 08:21

For sellers, it’s not that bad. You just need to cover their costs eg solicitors and surveys. Maybe £5k?

That’s not correct. It depends on terms but I can be the deposit or ten percent of sale price, or similar. It’s incredibly costly for either party

im so sorry this has happened op. Take some time to breathe right now before making any decisions.

MaggieFS · 22/10/2023 08:27

I'm so sorry to hear this. Perhaps report and have this moved to legal for more answers?

ThroughThickAndThin01 · 22/10/2023 08:28

My understanding is that if either party pull out then it’s the exchange deposit lost to the other side, so can be a lot more costly than the £5k someone has suggested. Speak to solicitor first thing.

Good luck with everything OP, an awful time to be going through.

Twiglets1 · 22/10/2023 08:34

ThroughThickAndThin01 · 22/10/2023 08:28

My understanding is that if either party pull out then it’s the exchange deposit lost to the other side, so can be a lot more costly than the £5k someone has suggested. Speak to solicitor first thing.

Good luck with everything OP, an awful time to be going through.

That isn’t right I just googled it.

It’s only the Buyer who loses the deposit if they change their mind.

The Seller has to pay any costs the Buyer has incurred and interest on the deposit. Plus they run the risk of being sued by the Buyer if they don’t have a good reason for pulling out of the Sale.

KentishMama · 22/10/2023 08:34

I don't have an answer to your actual question, but I'm butting in with a cancer patient diagnosis. I just wanted to say that in the majority of cases, cancer is a very long game, with a mix of treatment and waiting and treatment and waiting. It might be worth reaching out to your support system and asking them if they are able to (a) find you a rental closer to your current location, or ideally really close to the best hospital for the treatment your partner needs, and (b) to ask them to help you manage the move. People will step up if you ask for help with specific things, in my experience. And you could pull out of your onward purchase and take a break from house hunting until you feel mentally strong enough to pick that back up.

Just as an option. This all massively depends on details of the diagnosis and treatment plan, but I think there are multiple options you haven't explored yet.

Hang in there.

GOODCAT · 22/10/2023 08:39

I worked for someone who this happened to, she was badly injured in a car crash and became quadriplegic. They as seller kept the house but I think just paid costs of buyer. The buyer knew the circumstances and agreed not to pursue it further.

SlightlygrumpyBettyswaitress · 22/10/2023 08:53

Last time we moved we were told it was 10%. Our solicitor told us this vert specifically as all the money for the new house was tied up in the old house so we only paid a notional deposit at exchange.
I think you should prepare yourself for 10%.

Twiglets1 · 22/10/2023 08:55

SlightlygrumpyBettyswaitress · 22/10/2023 08:53

Last time we moved we were told it was 10%. Our solicitor told us this vert specifically as all the money for the new house was tied up in the old house so we only paid a notional deposit at exchange.
I think you should prepare yourself for 10%.

It’s 10% for the Buyer if they pull out not the Seller.

@Wuwvdk this is why you need to wait to talk to your solicitor not expect people on the internet to give good advice.

DaisyMaisyFaisy · 22/10/2023 09:01

I think if you’re in a chain they can all sue you too

LolSpinner · 22/10/2023 09:02

Are the people you are buying the house from in a chain? If so then they might also have to pull out of there sale and that might happen right up the chain if there are multiple properties involved.

I'm very sorry you are in this situation.

Twiglets1 · 22/10/2023 09:03

DaisyMaisyFaisy · 22/10/2023 09:01

I think if you’re in a chain they can all sue you too

They can try to sue but won’t have a case if the Seller has a very good reason for pulling out, as in this case.

Petrine · 22/10/2023 09:16

What an awful situation to be in.

Frasers · 22/10/2023 09:36

Twiglets1 · 22/10/2023 09:03

They can try to sue but won’t have a case if the Seller has a very good reason for pulling out, as in this case.

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That’s not how the law works, you don’t get to breach contract if you’ve a very good reason, unfortunately. Courts will apply the law.

however the pp maybe right, if a seller pulls out, the buyer issues a notice to complete within ten days, and can charge daily interest, the seller then needs to return deposit and a claim can be brought for all fees incurred.

so may not be as bad, it’s the buyer who is more heavily penalised. The op really needs to speak to her solicitor.

Twiglets1 · 22/10/2023 09:43

Frasers · 22/10/2023 09:36

That’s not how the law works, you don’t get to breach contract if you’ve a very good reason, unfortunately. Courts will apply the law.

however the pp maybe right, if a seller pulls out, the buyer issues a notice to complete within ten days, and can charge daily interest, the seller then needs to return deposit and a claim can be brought for all fees incurred.

so may not be as bad, it’s the buyer who is more heavily penalised. The op really needs to speak to her solicitor.

Show quote history

I got this information from a legal website, that a Buyer can try to sue but it’s not advisable if the seller has a good reason for pulling out. Realistically, the Seller normally only normally has to pay the Buyers fees incurred and interest on the deposit.

@Wuwvdk needs to discuss it with their own solicitor on Monday.

Electro79 · 22/10/2023 09:50

It could very easily end up in court with they buyer forcing the sale or suing for costs, which could be considerable.

How the court ruled would depend to some extent on your DHs diagnosis, if his cancer makes him too ill to move (physically speaking) then they will likely be more sympathetic, however if it is a cancer that is diagnosed by not impairing him too much, and expected to be treated successfully then the judge may say he was fit to move and therefore fall on the buyers side.

The buyer can reasonably ask for all legal fees, estate agents fees, removals and storage fees, and if they complete anyway they can also sue for cost of rental / hotel acommodation, loss of earnings etc.., note they may not be successful, but nothing can prevent them attempting to get what they can.

Talk to the solicitor, a lot will depend on how your buyer is placed and how litigious vs sympathetic they are.

Sorry for your predicament, hope it all works out OK