What can go wrong after exchange?

lilybugs

Can the seller still pull out and if so, what penalty would he incur?

(Seller isn't buying anywhere so hasn't paid any deposit).

Jorgan_2

In the very rare event of a seller pulling out, you would have to sue them for breach of contract, they would fail to complete the chain. The only seller I had who failed to complete was sued for the 10% deposit plus costs by the purchaser.

It is very rare for a sale not to complete after exchanging. I have had 3 in 14 years in the business. Two were as a result of the purchasers having their mortgage offers pulled by the lender when they did the final bankruptcy search before completion. The other was a vendor who took out a secured loan after agreeing the sale, she didn't have the equity in the property to cover her debts so was unable to complete.

One of my area managers had the person he was buying of fail to complete on him, due to a charge on the property. He actually moved into the property under a 10 day licence, everyone was told the charge would be lifted within a few days. It went on for 3 weeks, he started proceedings against the seller who in turn started proceedings against him over rent that the seller said was due on the property as the licence had expired & they were not paying rent on the property.

Debt_Free_Chick

lilybugs wrote:

Can the seller still pull out and if so, what penalty would he incur?

(Seller isn't buying anywhere so hasn't paid any deposit).

Pretty sure the "penalty" is stated in the contract, so that would be the first place to look.

Regards