What if completion is delayed after exchange has taken place?

Lotta_Littlies

Can this happen (as it seems is going to with us) and what are the consequences and repurcussions? Does anyone know please?

Lotta

freebo_2

It happened to us (only by one day). We where delayed by the bottom of the chain. Our vendors charged us a days interest on the purchase price, we charged a days interest to our buyer. Enquired about recovering extra removal costs (even though we hadn't completed everyone released keys via a "solicitors undertaking", meaing we got keys at 4.55, meaning £200 of removal mans overtime). Our sols wrote a letter, which was ignored, advised us it wasn't worth pursuing further. We where quite happy just to get in to be honest...

Robert_Sterling

I may be wrong but I think that when you exchange contracts the contracts will state the date on which completion takes place. So it follows that someone will be in breach of contract.



I am not qualified to give Legal Advice and this is only my opinion.

goldbyron

Yes. This nearly happened to me a couple of months ago. As I remember if completion doesn’t happen on the day, your sol can give 10 working days notice to complete and if it doesn’t take place the chain sue each other for breach of contract and deposits do not get returned.

Why can you not complete on time?

Lotta_Littlies

We were waiting for a deed of transfer from GE Money to take a loan from current house to new house but yesterday found out that solicitor claimed not to know anything about it. She dx'd GE Money a deed of postponement request but they claim not have received it. Meanwhile our mortgage broker claims that although it was indicated on the paperwork at the beginning of the process it was "struck through". By who?! Not by us but either the broker or mortgage company. Result is that we now have to wait for the mortgage company to send a revised mortgage offer with the second charge to the solicitors which was sent out today apparently (I won't hold my breath that our solicitor will receive it tomorrow) and then wait for GE Money to approve a deed of transfer. Completion was agreed for Tuesday but seems very unlikely and I'm going out of my mind worrying what we're liable for and how much it's going to cost us.

Add to that RAC Insure *still* haven't sent the insurance paperwork and claim to be unable to fax it direct to our solicitor. Our solicitor says she needs it by today as our lender needs it in place by 48 hours before completion. What more can go wrong?!

Lotta

goldbyron

I also remember that if everyone in the chain agrees to move the completion date this can be done without any repercussions. However people may be unwilling to do so. In my case the bottom of the chain’s mortgage product (not offer) had run out and she needed an extra 2 weeks to clear a new product. I wasn’t willing because the house was tied in with a mad semi-violent ex partner and we heard 2 days before completion. In another situation with enough notice, and not too much extension I may have agreed. By miracle the bottom of the chain managed to resolve the problem (I doubt this was ever the truth) and we completed as agreed.

goldbyron

Can you not contact RAC and chase this up?

Meanwhile has your sol been able to advise you whether this may still be possible? If not then your sol may have to contact the chain and make them aware. It would be worse to spring this on them next week rather than this. They may be more empathetic if they know what is going on.

helpMe_2-2

As Im a first time buyer - Im interested in the insurance needing to be in place. Is this standard practice? I'm supposed to exchange on the 6th Dec. Is it worth me setting this up now (and is it just building insurance I need?)

benood

Lotta - potentially you're liable for your vendors and buyers losses if you don't complete on the agreed day, and so on up and down the chain. In the worst case you could be liable for the losses for the whole chain. If it came to that you probably have a good claim against either your solicitor or mortgage broker.

However, my advice is get on the phone hourly to your solicitor and mortgage broker until it's sorted you've got Friday and Monday which should be enough to do it in as long as your advisers stay focussed - make sure they know that you think it's their problem to sort out. Get them to advise if you need to warn the rest of the chain (and get that advice via email). Also get them to use the fax not just post!

Your solicitor sounds like she needs to start working for you instead of you working for her - get her to chase RAC if it's really that urgent. Of course RAC can fax direct to your solicitor - I'm sure they will if you stress at them and tell them they will be liable if completion doesn't happen!!!

helpMe - double check the insurance you need with your solicitor - generally you need buildings only but the contract will be specific on this. You can get the insurance ready to go now and only go on risk when you exchange (no need to tempt fate by doing it earlier).

Lotta_Littlies

Thank you everyone. It's all sorted now and hopefully nothing else will go wrong to stop completion going ahead... at least nothing we'd be liable for (fingers crossed). All dh and I have heard all day is the mortgage broker blaming the solicitor and vice versa - despite that we'd have had to foot any costs ourselves. Not a good situation to be in.

I queried what would happen if completion didn't go ahead on Tuesday and what we'd be liable for. Our solicitor said that if completion is not going ahead on Tuesday, the buyers and sellers solicitors will both send solicitor Notice to Complete giving 10 days to complete. On the actual day of completion, we would be required to pay in addition to the purchase price, solicitors costs of £75 + VAT for notice of completion together with interest normally calculated at 4% over the base rate as well as any damages caused to the buyers and the sellers because of our inability to complete.

RAC btw found their fax machine and were finally able to fax through the required documents.

Lotta

goldbyron

Glad to hear it is sorted - I hope it all goes ahead on the day. Completion problems do happen but they are rare, thankfully.