Can't complete due to Priority Search

sk123_3

After months of struggle, I (a first-time buyer) finally managed to exchange contract on a property last Thursday. The mortgage lender was quick to release the fund and I was all set for "completion" on Friday.

... only for my solicitor to discover after search with Land Registry that there was another buyer (who was in the contract race with me) who has already ordered priority search and is ahead of me in the queue. My solicitor explained to me that if I complete under these circumstances (without getting the other buyer off the search queue) then I am liable to fraudulent action on the part of the seller, who can decamp with the money while the property doesn't get registered in my name.

The seller's solicitor has apparently reached out to the other buyer's solicitor and asked him to cancel their priority search with LR. He has even been threatened with legal action, but the other buyer is yet to withdraw. Consequently I am waiting to complete with no resolution in sight.

To me it seems like the law is an !!! (it mostly is), if any prospective can block other buyer from completing the purchase. It's so bizarre that I don't even know what is the magnitude of this problem.

* Is there a way to break the deadlock?
* What's the risk of completion under these circumstances?
* What can a buyer and his solicitor do to force a quick resolution?
* Can LR be requested to cancel another party's priority search? Probably by the seller?

Any inputs/suggestions?

thanks

Pete9501

How did you manage to exchange without the searches being completed?

I don't believe this and I don't think you have the full story, go back to your solicitor and tell them to sort it out.

Pete

m0bov

If you exchanged then you are already committed to buy, if either one of you back down then they are liable. Ask your Sol how they allowed you to complete before searches. I would ask it to be looked at by another partner as agree your not getting the full picture and sounds like someone has c***ed up.

pinkteapot

Are you sure you've exchanged contracts? Ask your solicitor. The answer to whether you've exchanged contracts yet or not is key to anyone being able to give you advice.

Signing the contract and sending it back to the solicitor is not exchange...

sk123_3

Isn't "land registry priority search" (OS1?) done post exchange and pre completion? All other standard searches (local authority, drainage, water/environ, chancel etc.) were done before exchange.

maninthestreet

I thought the solicitor acting for the vendor was obliged to inform any prospective purchaser that they are involved in a contract race???

m0bov

Agree, the OP needs to find out, 100% if they have exchanged with the vendor.

sk123_3

maninthestreet wrote: »

I thought the solicitor acting for the vendor was obliged to inform any prospective purchaser that they are involved in a contract race???

Yes, that was informed. What was not known is that the other buyer had ordered the priority search with LR even though he didn't end up exchanging.

sk123_3

pinkteapot wrote: »

Are you sure you've exchanged contracts? Ask your solicitor. The answer to whether you've exchanged contracts yet or not is key to anyone being able to give you advice.

Signing the contract and sending it back to the solicitor is not exchange...

Exchanged and not just signed. The mortgage lender has released the fund as well but hasn't been drawn pending this problem.

I don't discount my solicitor being incompetent liar.

m0bov

Well, unless I'm wrong here, your committed to buy the property. Two people can't but the same property?

pinkteapot

It sounds like you've been royally shafted. If you don't complete, you could lose your deposit and by sued for other costs by the seller. But your solicitor is saying that if you do complete then the Land Registry won't register the house to you with this search outstanding?! :eek:

You need legal advice, and fast. Preferably work with your solicitor on this but, if you no longer trust them, get advice from a different one.

What does the EA say? While you should be getting legal advice, it's also worth trying to get the EA to put pressure on the other buyer to pull out and withdraw that search. EAs will wade in if they smell their commission (they get paid on completion) going down the drain.