Delicate situation - exchanging contracts

[Deleted User]

Is this as simple as the OP wanting to keep his new address secret from his buyer?

Richard_Webster

"Releasing" a contract is the expression used by conveyancers to cover what happens in a chain situation. KIt is set out in agreed Law Society Formulas. Typically a buyer's solicitor phiones his seller'ssolicitor and releases a contract agreeing the details i.e. price, amount of deposit and completion date and this "release" is normally until atime later that day. The release constitutes binding undertaking by the buyer's solicitor that if the seller's solicitor comes back to him by that time that day the buyer's solicitor has no option but to exchange.

This gives the 1st seller's solicitor the confidence that he can then go to his seller's solicitor with a similar release to a time say 15 minutes earlier to "!release" a contract (or if that is the top of the chain, to exchange).

Once the top of the chain has exchanged the exchanges cascade down, each buyer being forced to exchange because of the undertakings given. if further up there is a delay then teh exchange doesn't happen and the undertakings cease to be effective once the critical time in the day has passed.

So the point here is that if OP was only selling and not buying his solicitor would exchange and not tell the buyer's solicitor that he would accept a release. Normally saying he only wants a release means there is chain above.

If OP doesn't mind his seller knowing and there is no further chain to complicate things then I suppose OP's solicitor could go to his seller's solicitor, explain the situation, and ask for a "reverse release" whereby the seller's solicitor undertakes to exchange on agreed terms as to price, deposit, date, if OP's solicitor comes back to him by a certain time that day. Safe then in the knowledge that he can force an exchange on the seller, OP's solicitor can then approach the buyer's solicitor seeking an exchange. If OP doesn't want the seller's solicitor (and therefore the seller) to know he can't do that.

It might just be possible for OP's solicitor to secure a release from his buyer's solicitor on the basis that he had got to check things with his client "So can you give me a release so it'll save time later....?" OP's solicitor would have to be very careful what he said as he could easily be accused of misleading a fellow professional when the real motive was to enable a purchase to be exchanged.

So there is a very great risk of exchanging on the sale before exchanging on the purchase - he could be committed to the sale without anywhere to go to. The Law Society Formulas for exchanging with their related professional undertakings enable exchanges to take place in chains without any risk of their being a sale with no purchase or the other way round.

It started with solicitors arranging it between themselves many years ago - I first came across it when doing my own sale and purchase in 1980 when I was in local government and out of regular domestic conveyancing practice. It was later codified in Law Society Formulas A, B, and C which embody a set of undertakings. However most solicitor still use the shorthand term "release" when a buyer's solicitor gives an undertaking to exchange on agreed terms later that day if required to do so.

I wrote the long explanation above without noticing Marco 501's contribution. Hopefully OP can now understand his solicitor's concern.

marco501

Thank you Richard for your detailed answer.

As the sellers know about the linked sale, would it be possible to exchange with the seller first with the `release` in place and then simply exchange with the buyer (ie the other way round)?

Would that solve the problem and would there be any reason for the seller to decline such a request do you think (given they know the situation)?

Richard_Webster

In answer to the query your solicitors should ask your seller's solicitors for a reverse release (which gives your solicitors a window of time when they can safely exchange on the sale and then force an exchange on the sellers for you to buy their property).

marco501

Thank you once again Richard W in particular, as well as the others who contributed.

Everything went well in the end.