Simultaneous Exchange/Completion... Erk!

silvercar

Oddgy wrote:

I cant get my head around this.

Sureley, by having an exchange date two weeks prior to completion, should anyone pull out prior to the completion date, after the exchange date, legal proceedings can be issued as they are fully liable as contracts are signed. I realise the vendors wont be able to keep hold of any deposit as no deposit has been given, but the people that have pulled out or not gone ahead will be Legally LIABLE to be sued.



However, by doing a simutaneous exchange and conpletion, if on this particular day they have second thoughts before signing the contracts while evryone is rushing around loading vans up then sueley we all will be worse off as we would have paid for removals etc. And we have no way of suing them as they havent done anything wrong, as they pulled out before Signing the contracts.

Is this right or have i got muddled fuddled?

The problem is that if someone cannot scrape together a deposit there is going to be no point sueing them as they have no money to give you.

pawpurrs

rome wrote:

This is not true that you must exchange and complete on the same day if you haven't got a deposit. I bought my first flat with a 100% graduate mortgage from HSBC and some of the funds were released early to cover the deposit.

Our EA and solicitor were both used to dealing with FTBs with 100% mortgages and didn't see it was a problem. I would suggest that anyone getting a 100% mortgage checks with their lender about the deposit and anyone thinking of accepting an offer from a FTB with a 100% mortgage asks the EA to check how the deposit will be paid rather than rejecting an offer.

Yes, so if funds were released early then you had a deposit, in some form or another, where it comes from is neither here or there.
You can also use money set aside for stamp duty etc, but in whatever form it comes it amounts to the same a deposit.
As a vendor I wouldnt care where the deposit came from, as long as there was one, thats up to the buyer to sort out, and in my opinion should be thought of in the early stages, rarther than at the last minute.
Many lenders will be prepared to advance funds early for the deposit. But that means that you in the end you did have a deposit.

uglybug

A bit of positive news... I received mail today for the buyers of my house. If they are already getting their mail redirected here, I think that, barring some major emergency, this is good news for an easy move tomorrow!

pawpurrs

I am sure it will be fine uglybug, good luck and every happiness in your new home.

Oddgy

1 Day To Go Ugly Bug>>>>!!!

uglybug

Yes, and spoke to solicitor today - all is on-track. Just need to give 'em a call tomorrow first thing to make sure that there are no last minute hiccups. He reckons it should all be complete by 11am, but he can sit on it until 2:30pm at the latest if I need the time to move.

So exciting!

ginandtonic1988

I've just exchanged a property today with nil deposit, have you thought of asking for that?

izoomzoom

ginandtonic1988 wrote:

I've just exchanged a property today with nil deposit, have you thought of asking for that?

We went in to see sol this morning to sign our contracts.:j

Although they requested for final payment to be made on completion, because we have no deposit they asked for us to settle our bill immediately and they would use that as our deposit.

We happily obliged.:cool:

Expecting exchange next week, and have asked for a completion of 29.11.06 !:j

uglybug

We moved in yesterday! Simultaneous exchange/completion went without a hitch. As smooth as it could have been. So, Oddgy, you can think of my very positive experience when you worry about yours.

pawpurrs

:j CONGRATULATIONS UGLYBUG :j