Death of vendor between Exchange and Completion

princeofpounds

From a quick web search, it seems that the contract remains binding upon the estate, and the executors had better get a move on because the estate can be penalised for failure to complete, but thankfully there does appear to be a channel for them to expedite grant of probate.


EDIT - it looks like they would have to pay costs out of the estate, but they would be less likely to receive any kind of penalty as long as they could demonstrate they made reasonable efforts to acquire probate.


But I'm sure your lawyer can give you proper help.


http://blog.homes24.co.uk/norfolk/2009/06/property-legal-advice-from-philippa-rudd/


http://www.fridaysmove.com/what-happens-if-seller-dies-during-purchase-conveyancing-transaction/15124


http://www.fridaysmove.com/what-happens-if-seller-dies-during-purchase-conveyancing-transaction/15124

AnnieO1234

Many moons ago now in my first proper job, I worked as a legal secretary. Spoke to a client to confirm we had exchanged and would be completing on Friday as planned. The next day her husband phoned, she had been going to make them a cup of tea when I called, she put the phone down and carried on into the kitchen. He found her dead a few minutes later. She was early 40s.

The chain completely collapsed and was handed over to our litigation team.

Xxx

kinger101

G_M wrote: »

Wow!

At what age is a seller classified as 'old' for these purposes.......?

Would it not be more sensible to seek a medical report for all sellers? After all, a 40 year old cancer sufferer might be more likely to die than a fit 70 year old.......

If they've stopped buying green bananas, it's probably an indication that exchange and completion should be on the same day.

moneyistooshorttomention

AnnieO1234 wrote: »

Many moons ago now in my first proper job, I worked as a legal secretary. Spoke to a client to confirm we had exchanged and would be completing on Friday as planned. The next day her husband phoned, she had been going to make them a cup of tea when I called, she put the phone down and carried on into the kitchen. He found her dead a few minutes later. She was early 40s.

The chain completely collapsed and was handed over to our litigation team.

Xxx

That was a one-off incident many years ago and the law may very well have changed since.

It was certainly my understanding that once Exchange has happened, then basically Completion HAS to follow and I don't see that would change because the vendor themselves has died.

OP is presumably in exactly the same position as any other buyer where vendor refuses to Complete after Exchange - except that whoever is dealing with probate will almost certainly complete the sale (ie they will be wanting to "cash in" on the inheritance sooner rather than later). The thing is - it might take rather longer.

In OP's position - I'd be back to my solicitor (hope it IS a solicitor and not a conveyancing firm or something?) and saying "Completion date was fixed as being so-and-so at time of Exchange. What do we do now - as I still wish to proceed as per plan?". Also ask what the worst case analysis is as to how long the Completion Date could be delayed because of vendors death and what the position would be re compensation payable for delay or not proceeding with sale in a reasonable timespan.

cbrown372

Dear lord you expect compensation because the vendor died? I was going to say there are worse things that happen in life but sadly for the vendor there isn't.

mrginge

cbrown372 wrote: »

Dear lord you expect compensation because the vendor died? I was going to say there are worse things that happen in life but sadly for the vendor there isn't.

Did the OP say anything about compensation?

davidmcn

cbrown372 wrote: »

Dear lord you expect compensation because the vendor died?

Whether or not the OP expects it, the contract will provide for compensation to be payable by the vendor if they're not in a position to complete on time. For whatever reason.

casper_g

cbrown372 wrote: »

Dear lord you expect compensation because the vendor died? I was going to say there are worse things that happen in life but sadly for the vendor there isn't.

The OP will face substantial additional costs if completion does not happen at the agreed date, which could easily run into many thousands of pounds, inlcuding additional removal costs, storage fees, hotel bills, liability to everyone lower down the chain. We're not talking about a few quid which the OP should just accept as one of those things, but potentially life-changing sums.

It's not at all unreasonable for the OP to expect that the vendor's estate cover these economic losses. The money will ultimately come out of the sale price of the property. Why should the vendor's heirs get this money while the OP's family is left potentially in serious financial difficulty?

Demanding damages over and above this for noneconomic aspects such as distress/inconvenience might legitimately give rise to the reaction you express ("Dear lord...") but the OP hasn't said anything about that.

DaftyDuck

mrginge wrote: »

Did the OP say anything about compensation?

No, but I believe cbrown372 was referring to thepost just above his, by the ever-delightful and compassionate moneyistooshorttomention who, if she were in the OP's position, would

be back to my solicitor.... what the position would be re compensation payable for delay

...

Yes, costs may have to be covered. There's no reason to expect them to be huge, and every reason to try to mitigate them. There's no sign the OP him/herself is hopping on the "compo" route but look, sH7T happens to people in life, and being kind and considerate costs little.

I've just bought. Vendor was heading for bankruptcy. Did I shaft them, lower price at last minute, and demand their first born? No. They still (month later) park their vehicles and trailer here, there's a large fridge, and a heap of stuff in a shed. They are struggling to find their feet in their new business, and it's no skin off my nose to be kind.

I see no sign the OP isn't being just this, but let's not leap on the "I wish this to go ahead as planned, or else..." Somebody's mum/dad/son dies.... they've got rather a lot on their plates, and a little kindness goes a long way.

I have already had far, far more back from my vendors for my being kind to them... bit of help here, phone number there, a chat and advice. I could have gotten my solicitor to write them a stern " property must be removed by completion...." Wouldn't have helped them, wouldn't really have helped me either...

editing while working..

eddddy

At this stage, I think the OP might be more interested in knowing:

- What can I do to make completion happen on time?

rather than:

- What compensation can I claim if completion doesn't happen on time?