Delicate situation - exchanging contracts

marco501

Hi,

I am in need of some assistance from someone with conveyancing expertise as I am having difficulties obtaining a satisfactory explanation from my own conveyancer.

Basically, I am in the process of selling a property and buying another property. The buyer does not know about my purchase and I was intending to exchange contracts with them first and then exchange contracts with the seller immediately afterwards.

My conveyancer says I need to tell the buyer `because I will need to synchronise the sale with the purchase as contracts will have to be released to us`.

What does `releasing contracts` mean please? Many thanks in advance for any words of wisdom.

martin.cat

Potentially you could end up homeless unless you can complete purchase without the sale.

Usually your purchase is conditional on you sale so contracts and money transfers reflect the dependency

TheCyclingProgrammer

martin.cat wrote: »

Potentially you could end up homeless unless you can complete purchase without the sale.

Usually your purchase is conditional on you sale so contracts and money transfers reflect the dependency

OP is proposing to complete their sale first, not the other way around. They are entitled to do this as long as they are aware that their purchase could fall through. They don't HAVE to be tied together although you normally have to exchange on your sale before your purchase unless you already have the cash to complete your purchase.

As long as OP has a backup plan (eg renting) they should be able to exchange on their sale before their purchase.

G_M

There are 2 options:

1) keep the 2 transactions seperate.
a) A risk is that your conveyancer may Exchange contracts on your sale, thus committing you to sell. Your purchase may then be delayed or cancelled, leaving you homeless. Are you prepared to take this risk?

b) you/your solicitor will in any case need to delay Exchange on your sale until you have at least a reasonable chance of Exchanging quickly on your purchase. How will you explain this delay to your buyer?

c) I can see no benefit in this option, though you may have some reason for iy

2) You link the 2 transactions
a) this is the normal process

b) Conveyancers have an established process for Exchanging on sales/purchase simultaneously, thus ensuring their client is not left either homeless, or in possession of 2 properties

c) Conveyencers also have an established process for using the funds from a sale for a simultaneous purchase

d) but the processes described above require all parties to be aware of the 'chain' (ie the linked transactions.

I do not know what 'releasing' the contracts means.

notanewuser

TheCyclingProgrammer wrote: »

OP is proposing to complete their sale first,

Are they? That isn't what they've said.

marco501

I think I understand it.


So conveyancer exchanges with buyer and if the purchase doesn't go through then he can retract?


Is a time limit set? How long is this usually?

notanewuser

marco501 wrote: »

I think I understand it.


So conveyancer exchanges with buyer and if the purchase doesn't go through then he can retract?


Is a time limit set? How long is this usually?

No, retraction after exchange costs a fortune. Exchange makes you legally bound to sell and buy.

TheCyclingProgrammer

notanewuser wrote: »

Are they? That isn't what they've said.

Fair point, they said nothing about completion deadlines but they are proposing to exchange with their buyer first, which does commit you to selling before buying, which was my point.

marco501

He talks about getting a `reverse release` which is to exchange with the seller and then exchange with the buyer if the seller's solicitors are happy to do this.


Does any of this make sense?

TheCyclingProgrammer

OP would be better off explaining what they are trying to achieve and why. Why do they want to keep their buyer in the dark about their purchase?

G_M

marco501 wrote: »

I think I understand it.


So conveyancer exchanges with buyer and if the purchase doesn't go through then he can retract?


Is a time limit set? How long is this usually?

No. Once Exchange takes place there is no going back.

that is my normally people Exchange on sale and purchase simultaneously>