Can vendor pull out and keep dep. if we're late completing?

bluishmist

We have had an offer accepted on a repossession - exchange is set for 28th June and completion a week later on 5th July

The vendor (an asset management company) wanted completion much earlier but our funds aren't available until Sat 2nd July, and they refuse to exchange more than a week before completion.

The estate agent told me that if by any chance we couldn't complete on the day specified, the vendor would pull out and keep our deposit.

Obviously, we plan and expect to complete on time, but if for some reason the funds get held up for a day, are they legally permitted to do this ?

From what I can find online, they can impose penalties, but can they actually refuse to complete entirely because completion is a day late?

Thanks for any advice,

hcb42

what has your lawyer advised?

G_M

It depends what is written in the contract! Discuss with your solicitor.

Remember by delaying Exchange you increase the possibility of another buyer coming along with a higher, or quicker, offer. Accepting your offer means nothing with a repo, until you actually exchange.

bluishmist

Ok, thanks, i'll raise it with our solicitor.

Yes, we know about the high possibilty of being gazumped - we are ready to exchange within a few days but I guess they want to put it off in case they get a better offer.

Doozergirl

No, they can't do that! Estate agents. They're great. So many of them are inexperienced and full of half truths.

If you fail to complete on the specified day, they have to give you the opportunity to complete. I've had it happen to us twice; minor delays. Once was our saide (bank didn't receive the signed mortgage deed and didn't bother to tell us they were still waiting until the supposed completion day when we called to ask where the money was!) and once the other side when he failed spectacularly to gazunder us after exchange.

All that happened on both occasions was that the buyer paid interest on the full amount due. It's not exactly cheap but it's nothing compared to the amount you're shelling out. When it happened to us it worked out at about £10 per day, per £100,000 of purchase.

If you totally failed to complete, they can sue for your deposit if you totally fail to complete, but there is no way that the law simply allows people to keep your deposit for being a couple of days late in completing.

Mortgagees are far more laid back than they like to make out as well. They don't exactly trip over themselves to hit the 28 day deadlines either.