Vendors pull out AFTER exchange of contract

Welshwoofs

Hi all

Hoping someone can give me some advice on where we stand with something - I'm ruddy livid right now!

In short, we exchanged contracts on a house 4 weeks ago. The vendors wanted a long period until completion to arrange their move. Completion was tomorrow. Today we had a call from the solicitors saying the vendors have pulled out with no reason given. Needless to say we are gobsmacked, we were picking up the keys tomorrow!

The agents suggested that money may be a factor for them and perhaps we should give them more in order to complete. Needless to say we've turned that suggestion down flat.

The question is, where do we stand? Obviously we'll get the deposit back, but we're out solicitors' fees, survey and removal costs since the removal was booked for tomorrow! From our side of things, our current house is due to be rented out in a few weeks (thank God we weren't in a chain!).

Our estate agent has never had someone pull out after exchange of contracts and is at a loss on what to do really. Anyone any experience of this? Where do we stand legally, are they contractually obliged to go ahead now, or will we have to sue to get costs back...what about compensation? The move was half-way down the country and involved one of us changing job...now we're set back for lord knows how long.

Any advice/experience appreciated.

chickmug

With all my years in the business and having dealt with 1,000's of transactions I have never had a vendor pull out so not really sure. You need to be on the phone to your solicitor first thing in the morning.

You may find your conveyancing solicitor contact not the right person and may get referred to a contract law specialist in the practice if big or they may even suggest another practice.

So sorry hear about it - unheard of before so not sure what else to suggest.

bitsandpieces

Speak to your solicitor tomorrow. My understanding (I'm not a solicitor) is that you'd be in a position to sue the vendor.

I wouldn't agree anything with estate agent or vendor until you've discussed it with your solicitor.

rach83

Its a breach of contract. You will have paid a deposit on exchange of contracts which if they dont return it you could sue them for.

gauly

There was a similar thread here:
http://forums.moneysavingexpert.com/showthread.html?p=18606499

The general consensus is that you can force through the sale using the courts and sue them for all the extra costs!! Problem is that could be expensive if your vendors don't have the cash to pay you the money they owe you and finacially it may make more sense to get your deposit back and walk away.

Welshwoofs

No I've never heard of this happening either - it's absolutely unbelievable to me and obviously has caused us large costs and total upheaval to our lives. Leaving it less than 24 hours before completion to pull out is totally beyond my comprehension. The way I feel at the moment it's all I can do not to drive down there, hammer on the door and find out what the bleep they're playing at! If we had been selling and in a chain, we'd be looking at being homeless tomorrow!!

I'm even more shocked that the estate agent should suggest throwing money at the problem - why on earth would we give lump sums to people who are breaking a legally binding contract to sell? I honestly think they don't know what to suggest and are grasping at straws.

I guess we'll see what a contract lawyer says

westv

rach83 wrote: »

Its a breach of contract. You will have paid a deposit on exchange of contracts which if they dont return it you could sue them for.

Plus all expenses I think.

silvercar

Their solicitor should be advising them that they will incur costs by doing this and could still be forced by the court to honour the contract.

Are you 100% sure that you have exchanged? People sometimes think that signing the contract and giving the deposit to your solicitors means you have exchanged. You have only really exchanged when the solicitor notifies you that you have.

SouthCoast

with all my years in the business and having dealt with 1,000's of transactions i have never had a vendor pull out so not really sure.

+1

...........................

andrew09

From reading another thread on this site, it suggests you can force them to honour the contract and move out. This is way more serious a matter than them paying back your deposit and paying a few solicitors fees.

(I can't link to the thread as I'm new!)

Welshwoofs

silvercar wrote: »

Are you 100% sure that you have exchanged? People sometimes think that signing the contract and giving the deposit to your solicitors means you have exchanged. You have only really exchanged when the solicitor notifies you that you have.

No, absolutely 100% positive. We were informed contracts were exchanged weeks ago.

Apparently they have been advised by their own solicitors that they may incur large costs doing what they're doing but they're refusing to move out regardless. Everyone is shocked - from the solicitors to the estate agent (who is a tailspin thinking of their commission going down the toilet no doubt).

There simply seem to be no reason for this.. :mad: