House sale falling through after exchange of contracts

camptownraces

Bridging Loan - this used to be the answer for such a buyer in olden times.
Given that there is a "financial advisor" already involved (why?) that person has a job to do, and it may possibly be all sorted in a few days...

marksoton

Daletoon7 wrote: »

My question is how can I be sued? I've done nothing wrong! I've exchanged in a chain using legal professionals and it's my buyer and their legal team that have missed the retention. Shocking

Assuming you require sale funds to purchase contractually you have.

You will fail to purchase your new property as per your contract with your vendor.

You seriously need to make it clear to your purchaser how severe this is.

Daletoon7

Trust me - she knows - she is now proposing getting her builder she was going to use after completion - into the flat wed to do some work - I will run it passed my solicetor tomorrow. She has agreed to pay for it all but I want legal advice before it happens

marksoton

Daletoon7 wrote: »

Trust me - she knows - she is now proposing getting her builder she was going to use after completion - into the flat wed to do some work - I will run it passed my solicetor tomorrow. She has agreed to pay for it all but I want legal advice before it happens

Are you mad!

You'd be allowing someone else to carry out works on YOUR property before sale.

There is something going on here....

eddddy

Daletoon7 wrote: »

My question is how can I be sued?

- You are sued, and then you sue your buyer - so you should get the money back.

- Then, possibly, your buyer sues their solicitor for negligence.

- And the solicitor claims on their Professional Indemnity Insurance.


But if this is your buyer's fault, the buck stops with them (they can't sue their solicitor). And, worst case, your buyer can't afford to pay you and goes bankrupt. You would then be left out-of-pocket.

HouseBuyer77

marksoton wrote: »

Are you mad!

You'd be allowing someone else to carry out works on YOUR property before sale.

There is something going on here....

Ordinarily allowing your buyer to touch your property pre-completion would be madness.

However they have exchanged. The buyer is committed to the purchase.

It sounds like what the lender intended is that either the buyer would walk away from the purchase, find a way to finance until they could do the renovations (e.g. a bridging loan) or persuade vendor to do them first.

So the buyer has a vested interest in getting the job done properly and quickly and is contractually obliged to buy the property.

Of course if the builder makes a right mess of it and completion doesn't happen you could have a big problem (on top of the non-completion problem).

So if you do go down this route make sure you keep a close eye on what's happening.

Alternatively refuse to allow the builder in and suggest your buyer investigate bridging finance.

marksoton

HouseBuyer77 wrote: »

Ordinarily allowing your buyer to touch your property pre-completion would be madness.

However they have exchanged. The buyer is committed to the purchase.

It sounds like what the lender intended is that either the buyer would walk away from the purchase, find a way to finance until they could do the renovations (e.g. a bridging loan) or persuade vendor to do them first.

So the buyer has a vested interest in getting the job done properly and quickly and is contractually obliged to buy the property.

Of course if the builder makes a right mess of it and completion doesn't happen you could have a big problem (on top of the non-completion problem).

So if you do go down this route make sure you keep a close eye on what's happening.

Alternatively refuse to allow the builder in and suggest your buyer investigate bridging finance.

I wouldn't entertain this if hell froze over.

Especially from a BTL buyer who didn't even notice their contractural obligations when purchasing.

dancingfairy

Do not even think about letting her builder do work on your house. It sounds like a nice idea but what happens if the builder takes you house apart and the sale still falls through? You could have a wrecked house! It's complete maddness. Do not even contemplate this.
Df

tiger_eyes

This tale of incompetence reminds me of a happy occasion when I exchanged on a purchase intending to complete on the same day, but my solicitor forgot to transfer the mortgage funds to the seller's solicitor.

Yep. Forgot.

dancingfairy

This will all be sorted in the end. Either your buyer will find funds and she can complete or you all sue her and get compensation. It will work out somehow.
I'm sure it is a complete nightmare for you right now but hang in there.
Df