what happens if vendors fail to complete?

filbrit

Just came across my mind and was hoping if you can enlighten me a bit on this query.

If a vendor fails to complete on agreed completion date after exchange, are they liable to pay for any financial loss incurred by failure to complete? Ie. Movers, temporary accommodation and storage?

Also are they also liable for paying the extra bit of insurance that we pay from exchange if they extend completion date?

Anyone with first hand experience of this happening to them?

lincroft1710

Are we talking a day or so late, or vendor now refusing to go through with sale after contracts have been exchanged. If the latter there is a huge thread on this board about the consequences of this happening.

filbrit

lincroft1710 wrote: »

Are we talking a day or so late, or vendor now refusing to go through with sale after contracts have been exchanged. If the latter there is a huge thread on this board about the consequences of this happening.

More on 2 weeks or more. As they are moving in a new build and anticipating that there will be delays in actually finishing the house on time. So just want to be prepared and not worried in case it does happen.In that regards, can you claim?

lincroft1710

According to this thread

https://forums.moneysavingexpert.com/discussion/4837020

where the buyer delayed completion, expenses can be claimed when there is a delay.

TBagpuss

Yes. When you exchange contracts you enter into a binding agreement. If one party breaks that agreement, then basic contract law applies and generally you can claim and should be put in the position tat you would have been in had they not breached the contract, so any [reasonable] out of pocket expenses would be met. You might also be entitled to damages.

Have you already exchanged? If not, it is much more likely that they will refuse to exchange until they have a definiate date for completion.

filbrit

TBagpuss wrote: »

Yes. When you exchange contracts you enter into a binding agreement. If one party breaks that agreement, then basic contract law applies and generally you can claim and should be put in the position tat you would have been in had they not breached the contract, so any [reasonable] out of pocket expenses would be met. You might also be entitled to damages.

Have you already exchanged? If not, it is much more likely that they will refuse to exchange until they have a definiate date for completion.

They actually wanted to exchange very early. Want to exchange in 2 weeks time and complete early June. Something to do with them buying a new build. When asked if the property is finished yet. They say target date is June. I am worried that usually new builds with weather and other factors may push a target finish date a bit further. So I will be paying for insurance on the property were buying for at least 2 months which I think is a bit to much. 2 months paying for something that we wont be living in. i mean a 2 weeks to a month would be fine.

But my real worry is it will be extended again.

Thanks for the reply

TBagpuss

Well, if they exchange with you, you get your solicitor to put a firm completion date in, and it is then your seller's problem to find somewhere temporary if their purchase is not ready!

Talk to your solicitor.

cpheonix

My completion date is coming up at the end of the week but we still haven't received anything from the solicitors regarding payment etc. After speaking to them they said they are awaiting the completion details from the HA (the seller).

They said everything still should be fine for the completion date and that it's common for the final deposit payment and solicitor fees to happen last minute. Is that true or should I be worried that the date won't be met? What happens if something is held up because of the seller, would they compensate us for movers, temporary accommodation etc? We have a letter from the solicitors confirming the completion date.

I'm a first time buyer so apologies if I sound impatient.

CKhalvashi

lincroft1710 wrote: »

According to this thread

https://forums.moneysavingexpert.com/discussion/4837020

where the buyer delayed completion, expenses can be claimed when there is a delay.

I read a case which was settled for £60k + expenses in the end.

Obviously depends how far the buyer wants to push it, and how willing they are to threaten court.

CK

ethank

Thankfully..... It's very rare.