Delicate situation - exchanging contracts

Thrugelmir

marco501 wrote: »

I don't want to go into great detail beyond the fact matters are delicate and the buyer cannot be trusted.


I was just hoping to make sense of what I have been told by my conveyancer so I can make an informed decision.

All parties in the chain will need to mutually agree upon a completion date when exchanging contracts. In this event there's no hiding your purchase.

marco501

Thanks for all your replies.


So the conveyancer satisfies themselves that both sides are ready and agrees with them a completion date.


A simultaneous exchange then takes place. Is it at that point that the other party knows there is a related sale or must they know in advance of this?

G_M

marco501 wrote: »

Thanks for all your replies.


So the conveyancer satisfies themselves that both sides are ready and agrees with them a completion date.


A simultaneous exchange then takes place. Is it at that point that the other party knows there is a related sale or must they know in advance of this?

It is (virtually) impossible for your conveyancer to discuss & agree an Exchange date with your buyer's conveyencer without at some point saying "my client's seller is not ready" or "Someone higher up the chain is not ready".

In theory it is possible but in practice?

If you/your buyer are both ready, and your buyer's conveyencer rings and says "Let's Exchange tomorrow", what do expect your conveyencer to say?

A linked sale/purchase is part of a chain. All parties are aware of that. Only when the entire chain has agreed they are ready can exchange on all the contracts take place.

Now, you can, as explained, unlink your sale/purchase if your circumstances allow. In that case you can exchange on your sale without exchanging on your purchase.

But as I pointed out, you will need to have somewhere else to live if necessary. Or as xlophone points out above, if you already live elsewhere, then you won't need your mum, or the bridege, you just stay where you are.

But as you have not told us about your circumstances, we can only advise on the possible general risks, without making specific comments on what you actually can/can't do.

* do you live in the house you are selling?
* can you move in with your mum/friend/colleague?
* can you rent a property (probably 6 month contract....)
* how long could you afford to live in a hotel?
* why are you so determined not to let your buyer know you are buying?
* what other factors (people? partner? kids?) are involved?
* in what way is your buyer 'untrustworthy'?

Give us detailed information and you'll get detailed advice!

marco501

Thank you for your detailed reply.

Assuming both sides have indicated their readiness to commit, hypothetically the conveyancer could tell them they will need to take instructions from the client before going ahead so that this process can then go ahead simultaneously?

Ultimately, what I am trying to ascertain is that with the right planning it is only during this `simultaneous exchange` that the parties become aware of the linked transaction and not sooner?

eddddy

marco501 wrote: »

Thank you for your detailed reply.

Assuming both sides have indicated their readiness to commit, hypothetically the conveyancer could tell them they will need to take instructions from the client before going ahead so that this process can then go ahead simultaneously?

Ultimately, what I am trying to ascertain is that with the right planning it is only during this `simultaneous exchange` that the parties become aware of the linked transaction and not sooner?

I guess hypothetically it may be possible to synchronise a sale and purchase without your buyer knowing, if your solicitor/conveyancer was prepared to 'play along' with the subterfuge. But I doubt that most solicitors/conveyancers would do it (unless you are a 'private client' paying them shedloads of money).

Usually, a whole chain 'works together' to negotiate (argue about) when to exchange and complete - "My mortgage offer is due on x", "My mortgage offer is lost in the post", "I can't take that day off work to complete", "I'm away on holiday that week" etc etc

You'll be trying to do this whilst pretending to your buyer that no upward chain exists.

And each time there is a problem in your upward chain, you have to change the dates, without being able to explain to your buyer why you need to change the dates.

Then your conveyancer has a big headache on exchange day, trying to synchronise the sale and purchase, without telling people what's going on.

marco501

Well seller is ready, but buyer is delaying.


Once buyer says he is ready then it can be done on the same day.


What I am still trying to understand is how a `simultaneous` exchange takes place. Is it a 3 way conversation?

Thrugelmir

marco501 wrote: »

Well seller is ready, but buyer is delaying.

Is seller buying?

marco501

No chain on either side.

TheCyclingProgrammer

marco501 wrote: »

Well seller is ready, but buyer is delaying.


Once buyer says he is ready then it can be done on the same day.


What I am still trying to understand is how a `simultaneous` exchange takes place. Is it a 3 way conversation?

Depends on the formula used but the details of the process are outlined here:

http://www.humphreys.co.uk/private_solicitors/articles/conveyancing_1.htm

marco501

Right then, I think I have got to the bottom of it.


Formula C


The exchange process starts with the solicitor for the buyer at the bottom (we will call this position 1) releasing the contract to the next solicitor on in the chain (position 2). This means that position 1 agrees he will exchange with position 2 provided that position 2 calls him back by an agreed time to complete the exchange. Position 2 can now contact the solicitor at position 3 and attempt to exchange contracts, safe in the knowledge that if successful then position 1 is obliged to exchange with him and if he is not then he is not obliged to exchange with position 1.