What happens if seller pulls out after exchange?

ukbondraider

Right, so upon exchange the buyer pays a deposit of 5% or 10% which goes to the vendors solicitors until completion. If the buyer pulls out the vendor/seller will keep this money and can additionally sue for other costs.

Is this correct?

So what happens if the seller decides to pull out?

They have not paid any money in the form of a deposit but would the buyer be able to sue for this amount? Would the buyer also be able to sue for other damages?

losgiganteskid

I believe it is "the norm" that in the circumstances you quote that if the seller decided not to sell after exchange of contracts the seller is liable to pay the purchaser a sum of money equal to that paid by the purchaser as his/her deposit.

Cute_'n'_Quirky

Exchange of Contracts is the point of no return.

Neither the Seller nor the Buyer can pull out after exchange of contracts, otherwise they would be liable to court action for breach of contract for the whole of the amount of the sale.

The injured party would be able to claim for loss of the sale, expenses, advertising costs, etc, etc, etc.

It is not recommended that neither a Buyer nor a Seller attempt this since it will prove to be a very costly exercise.

Richard_Webster

The buyer CAN (if wants the expense) obtain an order requiring the specific performance of the contract - i.e that the seller transfers the house to the buyer and gives vacant possession.


If there is a binding contract,if the buyer tenders the agreed price on the date fixed for completion and the seller refuses to complete, then in theory at least the buyer can compel performance. He might especially do this if similar houses were more expensive. The seller would have to see what deal he could make with the buyer.

So I agree with the last post - it is not recommended!

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.