Can I the seller pull out AFTER exchange of contract on my property?

Hannsmith

Hi everyone,

I wanted to make contact to see if anyone would be able to assist me and provide advice regarding a property transaction. I own a property and exchanged recently but my circumstances have changed and I now no longer wish to complete.

Basically, I wanted to know how difficult it would be and the potential penalties involved in not proceeding with a property completion following exchange?

Many thanks for your time.

anselld

Don't even contemplate it.
Unless the other party if feeling very benevolent you will be taken to the cleaners and/or forced to complete through the courts.

PasturesNew

Yes it is possible, but you can't walk away from the responsibility.

First you'd lose your deposit.
The seller would then go on to market the property and sell it to somebody else. During this process they'd incur more/further costs and might sell it for less than your agreement. They might be sued themselves for not completing on another property where the transactions needed each other.

All of these extra costs and losses incurred by the seller would then come to you in the form of a big fat bill.

There's a thread on here that somebody will link to shortly where somebody did just that ... and you can read the whole process/outcome.

phill99

You need to see if you can buy a wooden cross. Because you are about to get crucified.

anselld

PasturesNew wrote: »

Yes it is possible, but you can't walk away from the responsibility.

First you'd lose your deposit.
The seller would then go on to market the property and sell it to somebody else. During this process they'd incur more/further costs and might sell it for less than your agreement. They might be sued themselves for not completing on another property where the transactions needed each other.

All of these extra costs and losses incurred by the seller would then come to you in the form of a big fat bill.

There's a thread on here that somebody will link to shortly where somebody did just that ... and you can read the whole process/outcome.

As I read it the OP is the Seller.

The OP will be in breach of contact and can be sued through the courts for "specific performance" ( i.e. forced to complete the sale), plus liable for all the associated costs of all parties down the chain.

G_M

anselld wrote: »

As I read it the OP is the Seller.

...plus liable for all the associated costs of all parties down the chain.

for example if the buyer cannot move in on the contractually agreed Completion date, and is homeless, he can charge his hotel costs to the defaulting seller (etc etc)

Hannsmith - the key is in the terminology: "Exchange of Contracts". It's a contract. It is legally binding.

dancingfairy

You will probably find it easier to go through with it. If you don't you could end up a lot worse off. You're basically committed to selling it . I guess you could offer to buy an equivalent house for your buyers and pay compensation and all new costs (ie for searches, new mortgage applications, removal fees, hotel fees, food in hotels etc etc) but it will cost you dearly. Other than that you could be forced to sell anyway through the courts (and possibly still have to pay additional expenses such as hotel bills/short term lets etc).
Have a chat with your solicitor but it not completing is a very bad idea financially.
Why have circumstances changed so dramatically? You could contact the buyers and explain that so and so has died (or similar dramatic event has occurred ) and plead for mercy but you would be entirely at their mercy whether they wanted to sue you or not.
df
P.S you would also have all the people's expenses below in the chain if they also had exchanged.

PasturesNew

anselld wrote: »

As I read it the OP is the Seller.

Ah, well, same thing in reverse.

The thread on here followed the journey of a buyer who was screwed over ... and covered the whole side of what the seller's buyer would do to them, so the thread's relevant, when posted/found.

It was in Wales, about 4-5 years ago ... it crops up 2x a year at least.

ethank

What was your change in circumstances?

Hannsmith

Many thanks for your responses. The current lender forced the sale at a under-value price due to an overdue loan. Now that I can potentially raise the funding to repay their loan, can it be reversed so that I can keep my property? The buyers want to rent the house and have a delayed completion. I do feel bad for them and would be happy to pay their removal costs/legals etc etc. They already own a home they will market shortly. Any legal advice or assistance would be greatly appreciated as there are serious financial consequences for me and my business in the sale completing at an undervalue price . Thanks

Mickygg

You need legal advice from a solicitor. Contact your solicitor.