Skipping exchanging contracts, straight to completion.

Flick182

I'm almost at the end of the buying process. The sellers solicitor (seller is a government company) don't want to exchange contracts they want to go straight to completion transfer etc.
They say if we want a contract, my solicitors or I would need to pay for their contract to be drawn up.
Has anyone had any experience of this. What do you make of it?

maninthestreet

What does your solicitor say??

Flick182

The conveyencers said it's their policy to exchange contracts.

The vendor sold another not long ago and apparently they didn't exchange contracts and the solicitors were OK with completing. That's what the agent told us.

AdrianC

How can they complete a contract that doesn't exist?

Flick182

Complete the sale , transfer monies etc.
I thought the contract was an agreement between the seller and the buyer outlining what's included in the property, securing the sale etc.

What would be the pros and cons for me if I were to proceed without a exchanging contracts?

Why would the seller not want to exchange contracts and go straight to transferring the property to me?

Any advice appreciated

Thank you

frugalsmurf

Flick182 wrote: »

Complete the sale , transfer monies etc.
I thought the contract was an agreement between the seller and the buyer outlining what's included in the property, securing the sale etc.

What would be the pros and cons for me if I were to proceed without a exchanging contracts?

Why would the seller not want to exchange contracts and go straight to transferring the property to me?

Any advice appreciated

Thank you

Not heard of this so others will advise I'm sure. But from your point of view, where's the agreements what's being left/included, etc and of what you're actually buying??
I don't know what a contract specifically says, but if your solicitor says "it's their policy to do one", that would be ringing alarm bells in me to say it's worth doing.
I wouldn't take the estate agents advice on anything as they're sales people and personally I've been lied to in the past and learnt by mistakes. Go by what your solicitor advises.

p00hsticks

Flick182 wrote: »

Complete the sale , transfer monies etc.
I thought the contract was an agreement between the seller and the buyer outlining what's included in the property, securing the sale etc.

What would be the pros and cons for me if I were to proceed without a exchanging contracts?

I suspect that what is meant is that the exchange and completion takes place on the same day, rather than exchange not taking place at all - I don't understand how you can complete on a purchase with no contract to do so in place, but perhaps others with more legal expertise than me will be along .....

MerrilyA

Flick182 wrote: »

The vendor sold another not long ago and apparently they didn't exchange contracts and the solicitors were OK with completing. That's what the agent told us.

Hello,

Can you find out directly from the vendor the reasoning behind this? I don't think the agent sayIng the vendor did this before and the solicitors were ok with it is enough to go on. Hearing directly from them will allow you to get a good understanding of why they want to simply complete and not exchange then complete.

davidmcn

p00hsticks wrote: »

I suspect that what is meant is that the exchange and completion takes place on the same day, rather than exchange not taking place at all - I don't understand how you can complete on a purchase with no contract to do so in place, but perhaps others with more legal expertise than me will be along .....

Hi! No, I think they mean no contract (otherwise the reference to additional legal costs makes no sense).

You don't need a contract, as long as you're prepared to wake up on the day of completion with no certainty that your purchase is going to happen, and prepared to forego all of the ancillary warranties etc contained in the contract. Really, the OP's solicitor should be explaining to them what's in the contract and what they'd be missing out on. I've not encountered it before. And not sure what a "government company" is when it's at home.

Flick182

Yes, they mean no contacts.
The property is owned by a department in the government.

The conveyencers have not been very helpful at all. They have been slow and delaying for months. They are not solicotors. First they said that they are acting on behalf of me.So I told them that I am ok with no contract. Then they said it was not their policy to complete without a contract.

Freecall

I suspect that p00hsticks is correct and that what is meant is that exchange and completion could happen on the same day.

To be clear however, in law there will be a contract. Offer, acceptance, intention to create a legally binding agreement, consideration = a contract. Every time you buy something there will be a contract.

What you (or the vendor) seem to be suggesting is that this will not be in writing. Your conveyencer appears to be advising you correctly in that a written contract will protect your interests.