House sale falling through after exchange of contracts

Daletoon7

Hi everyone

Need some advice. Today our world fell apart when My estate agent rang me 24 hours before completion to tell me it was not going ahead. We had exchanged contracts a week ago and completion was tomorrow. We have packed everything and got all the things like water and electricity ready to cut off tomorrow.

However the estate agent has informed us that my buyer and her solicitor failed to see that her mortgage offer was 100% retained until she had proof she had funds to do up the kitchen and bathroom (she is buying to let). One day before completion we get told they did not realise this and there is no funds to complete!!!

Help - our solicitor is on the case but how does this happen???

silvercar

Your buyer and/ or their solicitor have screwed up big time.

Start itemising all out of pocket expenses you incur as a result. Eventually they will sort this out and have to reimburse you.

MrJB

Presumably the purchaser will have the funds to satisfy the requirement of the lender? Your solicitor will serve a completion notice on them if they fail to complete. If purchaser is BTL, presumably they're also a homeowner elsewhere?

marksoton

Someones got a big bill coming....

Guest101

Daletoon7 wrote: »

Hi everyone

Need some advice. Today our world fell apart when My estate agent rang me 24 hours before completion to tell me it was not going ahead. We had exchanged contracts a week ago and completion was tomorrow. We have packed everything and got all the things like water and electricity ready to cut off tomorrow. - Why would you have them 'cut off'?

However the estate agent has informed us that my buyer and her solicitor failed to see that her mortgage offer was 100% retained until she had proof she had funds to do up the kitchen and bathroom (she is buying to let). - What relevance does that have? Neither kitchen nor bathroom have statutory regulations below a limit where (I presume) you would be living and happy with? One day before completion we get told they did not realise this and there is no funds to complete!!!

Help - our solicitor is on the case but how does this happen???

Well it happens, but your byer is still liable to purchase the property.


As it's a BTL she presumably has another property. Which means she has assets.

Cisco001

You are seller right?
I assume you are moving out?
So whether your gas/ water cut off shouldn't bother you.
The only thing I can think of you need to do immediately is ringing you insurance company to extend building insurance?

ThePants999

Wow. Find out who the buyer's solicitor is and let us know so we can all avoid them in future! (Though the buyer is also a numpty.)

marksoton

I'll bet this was as a result of trying to rush through before that magic 1st of April date....

G_M

Are you also buying? If so, are you dependant on your sale for the funds for your purchase?

If you default on your purchase you will be liable for our seller's costs, which you'll need to pass on to your buyer. There may also be further costs up the chain which will all come down to your buyer - I hopr he as deap pockets.

Meanwhile, keep track or, and receipts for all you expenses.

Gas /electricity is the least of your problems - your contract wouldnot end till you provide final meter readis (tomorrow if it had gone ahead) so you simply maintain the contracts for the time being. You won't be cut off. If in doubt, ring the suppliers and clarify.

How does it happen? Human error. 2 people (buyer and solicitor) failed to properly read the mortgage offer.

Daletoon7

Apparently the mortgage offer dated the 17 nic stated they needed to do some work on the kitchen and bathroom to be able to rent it out. They have had months since then to do this work yet wait until after exchange to spot this mistake and then try and come to a solution. We are in a chain which had the buyer sadly pass away at the top of the chain so waited 6 weeks for probate (plenty of time to do the work) and yet still the exchange when the mortgage is 100% retained until the work is done. How did no one notice this - it's not just the financial issues - it's the stress and emotions it puts you through

Daletoon7

* 17 nov

Yes both my buyers solicetors, broker and Her self missed this until a day before completion.