Vendor has died between exchange and completion

PasturesNew

I just googled it:

".. cannot give good title until the Probate Registry has issued the grant of representation. Accordingly the buyer from a PR can lawfully refuse to complete until the grant is issued. This may cause completion to be delayed beyond the contractual completion date and any resultant liability for compensation and damages would fall naturally on the deceased's estate."

And
"... if the Probate Registry is made aware of the real possibility that damages could be awarded against the estate, the Registry will normally grant leave for the issue of an expedited grant (i.e. one which is processed more quickly than normal). The practitioner acting for the deceased's estate should, therefore, acting on instructions, apply for an expedited grant and at the same time notify the buyer's practitioner of the situation. It may be the case that once the other side (and possibly others in the chain) know of the seller's death they may be willing to postpone completion in the knowledge that an expedited grant is forthcoming."

And
"... Another viable solution to the problem of delay is for the PRS to allow the buyer into possession of the property on the contractual completion date under licence, whilst postponing actual completion until the expedited grant is received. Although the estate may still be liable for compensation in respect of delayed completion, at least the PRs can claim a licence fee from the buyer who is in occupation."

Here's the source of the above: http://books.google.co.uk/books?id=fORBJwKqYrYC&pg=PA224&lpg=PA224&dq=%22dies+between+exchange+and+completion%22+.co.uk&source=bl&ots=jol58Ouuko&sig=A2-g9vwCP3PTu4IxEwwxWkec-2w&hl=en&ei=E3pCSoOzNuS7jAf5mICnBg&sa=X&oi=book_result&ct=result&resnum=1

One thought: how long is your mortgage valid for? Potential damages would be costs to reapply.

ClootiesMum

Good idea about renting by G_M. The daughter will (hopefully) appreciate that the seller's wishes are still being taken care of and it's also one less thing for her to have to cope with.

CM

sascor

Yes the renting idea is interesting, I will bring this up with my solicitor.

Our mortgage offer is valid until 7th November so we should be ok in that respect.

poppysarah

Renting it would be too complicated... you'd want to improve but then have no legal right to...
Stay where you are if poss. It could be a year before it's sorted

sascor

PasturesNew - thanks for finding the information specific to this scenario - very useful and does give me some hope that this could be pushed through quicker than usual probate proceedings.

I'm confused now. I think I will hold fire just for a couple of days to see what transpires through the solicitor before speaking to the landlord about staying on. It means we might be able to give a clearer picture to the landlord too, and I would hope we wouldn't be so unlucky for them to find new tenants in the next couple of days anyway.

Thanks and will update the thread with any progress.

westv

"This may cause completion to be delayed beyond the contractual completion date and any resultant liability for compensation and damages would fall naturally on the deceased's estate."

Would that also include the deposit?

silvercar

compensation would normally be for the costs of moving twice and rental of an interrim property or hotel costs. Presuming that the sale eventually completed at the agreed price.

sascor

Well a week later and the solicitor still has no more information on how this will progress. Our landlords have agreed to let us stay on in the flat in the meantime but will require 2 months notice again. Our solicitor tells me that the seller will be sympathetic to this when setting a new completion date.

The main thing is that now we don't have to worry about potentially being without a home in a few weeks time and can just relax and be patient.

John_Pierpoint

Let us know know how it eventually works out.
I would try to discover if the seller's estate is going to be liable for inheritance tax (IHT).
If it is, then HMRC will get in on the act and that will delay things.

lyndasharp

The house I was initally planning to buy fell through because of a similar situation. The vendor died just after the sale was agreed but before exchange. The estate agents kept delaying due to probate, but it seems what no-one had told them (or me) was one of the probate executors had then died, and they had to get probate on her before before they could complete the probate on the vendor!!! So after waiting 3 months I was too concerned about losing my mortgage deal, and pulled out. I felt bad about doing it as the family had enough problems, but for me it worked out much better in the long run, as I found somewhere else within a few weeks that was, I think, a better deal, and I was still able to keep the nice tracker mortgage. Hope things work out well for the original poster, and good luck!