Advice - What could go wrong?

[HouseChainDrama]

It looks like after 5 collapsed chains and 9 months we may actually exchange on our sale and purchase this month. However our sellers want a much longer gap between exchange and completion then our buyer does. So we may need to complete on our sale before our purchase (exchange would still be simultaneous).

So we'd likely be homeless for 2/3 weeks. Temp accommodation and storage isn't a big deal, we can access both. What else could go wrong? How often do houses NOT complete after exchange?

What pitfalls are we missing?

NC for this as the legal part is still ongoing.

My vendor had a mental health issue on completion day and I couldn’t complete for a week.

There was a very real possibility in that time that he would refuse to complete and I would be left literally homeless.

Having the money from my sale in the bank would
not have miraculously enabled me to find and purchase a new house in zero time. I would’ve had to pay for hotels while the legal part was ongoing (to force an eviction? Can you imagine). I would’ve had to spend my sale proceeds on that as I don’t miraculously have six months of hotel or air bnb money spare.

Legally, if the sale doesn’t complete you get some
money back, but as I’ve found out in reality the vendor can just say nahhhhh and you’re in a court battle nobody wants.

Since this has happened, I’ve found other cases of delayed or failed completion online including one where the vendor discovered they were terminally ill and refused to move. Another on MSE where the vendors just decided they weren’t going to move, and the buyer had a two year legal case, and by word of mouth heard of a case where one vendor died after exchange and all parties agreed not to force his widow to complete.

So, it’s very unlikely, but it COULD happen and you’re opening yourself up to difficulties.

(I completed eventually but vendor has just plain refused to pay the legal expenses he is legally required to pay me due to the delay, and apparently nobody can force him until I take him to court).

Thanks @LiviNC that all sounds hellish.

Hope you're ok now!

It would be far more preferable @HouseChainDrama if a compromise could be reached between you, your seller & buyer and dates agreed for Exchange & Completion that you could all live with.

I have done simultaneous exchange & completion in the past but I wouldn’t recommend it. Nor would I recommend you taking any unnecessary risks. Everyone may just have to compromise a bit more.

Thanks @Twiglets1

We won't do simultaneous exchange and completion. More the whole chain exchanges same day, but we complete on our sale 2 weeks after and then complete on purchase 2/3 weeks after that.

A compromise would of course be best. But I'm exploring all options. As everyone should do when forced to operate in our insane house purchase system!

That’s 2 weeks you are at risk of the seller changing their mind and you’re left vulnerable. Not very likely at all, admittedly. But it does happen so should absolutely be a last resort.
I hope you can instead manage to negotiate a completion date everyone in the chain can manage.