Problems with completion

browny5678

Hi all,

I've been reading a lot of very helpful posts on here since i decided to buy my first house back in july, but i haven't been able to find an answer for my current problem.

Contracts were exchanged last wednesday, and we are due to complete on friday. However my solicitor advised me this morning that we have a problem in that one of our cheques has bounced, (problems with signature - never been an issue before with this account, always written by same person) and so we do not have enough money in the holding account to complete.

The cheque has come from a trust fund in my name which is accessed by a family member, who is currently on holiday. He is currently talking to the bank to see if a transfer is possible over the phone, but while i'm waiting to hear whether things can be fixed or not i'm a little worried.

Does anyone know the consequences for us if we do not complete this friday? we are doing all we can and i don't want to cause hassle for the vendors but if it cannot be fixed before my relative returns from holiday then theres no way we can complete on the agreed date!

Any advice appreciated.

Milliewilly

You can do a same day transfer over the phone - without knowing what sort of account the money is in it may not be possible though.

silvercar

If there is no way this can be fixed, I would look to borrow the money elsewhere for a few days. Bridging loan from your bank maybe? It will cost, but so will delaying the chain.

chappers

If you are talking a delay of a few days I would not panic too much , once the completion date has passed they will have to serve you with a notice to complete which gives you 10 days to complete the contract. There will be a daily interest charged for every day you don't complete, this will be laid out in the contract.
get your solicitor to explain to theirs and they may be willing to wait without enforcing the daily charge, obviously this may not be their sole disiscion if there is a chain involved
If you don't complete within 10 days of being served a notice to complete then thats a whole different ball game, they can keep your deposit and sue you for any associated losses, including loss in value of the property between now and when they eventually sell, you could also be likely to be sued up and down the chain, therefore ultimately making you responsible for the biggest claim in the chain.