Chain Collapse Post Exchange

danslenoir

fairy_lights wrote: »

But surely he can't just decide to sell to someone else, if his current buyers have already exchanged contracts on the property?

Well, yes, the contract will have stipulated a date by which completion would need to be done by. It sounds like this date has already passed (by quite some time) so the vendor at the top of the chain is well within rights to rescind the contract and sell to someone else after having served the defaulting buyers notice to complete.

fairy_lights

danslenoir wrote: »

Well, yes, the contract will have stipulated a date by which completion would need to be done by. It sounds like this date has already passed (by quite some time) so the vendor at the top of the chain is well within rights to rescind the contract and sell to someone else after having served the defaulting buyers notice to complete.

But would that also mean that everyone down the chain can now pull out without facing financial consequences? Or is it a lot more complicated than that?

pinkshoes

eddddy wrote: »

The OP (and others in the chain) cannot go after the FTB's solicitor - because they have no contractual relationship with him/her.

As mentioned above, the only person the OP can claim from is their buyer.


(However, if the FTB's solicitor really was negligent, the FTB can make a claim against them, which could eventually cover everyone's costs.

Sorry, this is what I was referring to - the final blame lying with the solicitor of the FTB, so all expenses can be passed down the chain and (hopefully) satisfied.

A basic requirement of a solicitor is to check the mortgage offer for errors, which includes making sure the expiry date is after completion.

I know this as when I bought a newbuild, The builder wanted exchange and completion within 48, but my solicitor advised me to start enquiring about another mortgage as the expiry date was approaching. thankfully we completed on the day before it expired!

The advisory bit for mortgages is only when there is not a fixed completion date (e.g. Lots of new build developments). This is not the case, a the completion date was agreed before exchange.

alchemist.1

pinkshoes wrote: »

Sorry, this is what I was referring to - the final blame lying with the solicitor of the FTB, so all expenses can be passed down the chain and (hopefully) satisfied.

A basic requirement of a solicitor is to check the mortgage offer for errors, which includes making sure the expiry date is after completion.

I know this as when I bought a newbuild, The builder wanted exchange and completion within 48, but my solicitor advised me to start enquiring about another mortgage as the expiry date was approaching. thankfully we completed on the day before it expired!

The advisory bit for mortgages is only when there is not a fixed completion date (e.g. Lots of new build developments). This is not the case, a the completion date was agreed before exchange.

There will a lot more to this than simply an expiry of an offer.

TBeckett100

I wonder if the top of the chain sells his house 10k below what he sold for originally whether he could claim that as well?

slowpoke_rodriguez

Rutledge88 wrote: »

The first time buyer who is at fault is my buyers buyer (i.e. 2 parties below me) do I have any way of going after him for the money I am about to loose? Does anyone have any experience of this?

Thanks

Joe

Don't blame the first time buyer. Blame the person who went on holiday!

"We exchanged contracts in July, with an agreed completion date of 4th September (one of the parties in the chain was going on holiday hence the time between exchange and completion)."

Where were they in the chain?

TBeckett100

Given the time since the mortgage offer has expired until now, Insuspect the FTB can't get a mortgage

Randomjargon

This is going to be a long messy thread...

Angie_B

slowpoke_rodriguez wrote: »

Don't blame the first time buyer. Blame the person who went on holiday!

"We exchanged contracts in July, with an agreed completion date of 4th September (one of the parties in the chain was going on holiday hence the time between exchange and completion)."

Where were they in the chain?

It's not the person who went on holiday's fault at all and I really cannot see how the OP or anyone in the chain would have any claim against them for that. Clearly, everyone (including the FTB) agreed to a 4 September completion date.

If the FTB's mortgage expired before the planned completion date, then they/their solicitor should have refused that completion date and made it clear that they needed to complete prior to their offer expiring before they exchanged contracts.

Either the FTB is unable to now get a new mortgage (it's been almost 2 months since their original offer must have expired) or they never had a mortgage fully sorted in the first place. So it looks to me as though the solicitor has been negligent or the FTB has wilfully ignored legal advice.

kinger101

Angie_B wrote: »

It's not the person who went on holiday's fault at all and I really cannot see how the OP or anyone in the chain would have any claim against them for that. Clearly, everyone (including the FTB) agreed to a 4 September completion date.

If the FTB's mortgage expired before the planned completion date, then they/their solicitor should have refused that completion date and made it clear that they needed to complete prior to their offer expiring before they exchanged contracts.

Either the FTB is unable to now get a new mortgage (it's been almost 2 months since their original offer must have expired) or they never had a mortgage fully sorted in the first place. So it looks to me as though the solicitor has been negligent or the FTB has wilfully ignored legal advice.

FTB's solicitor is also acting for their lender. I doubt they'd exchange deliberately knowing the offer had expired, no matter what their client instructed them.