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What are the risks if your buyer delays completion?

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If you are in the middle of a chain of three and you have exchanged, what risks are there (if any) if your buyer defaults?

I understand that if a buyer defaults at completion, they may lose their deposit, but I am not sure what happens up the chain. It would seem harsh to lose anything if you have not defaulted yourself or is the chain below yourself seen as your responsibility some how?

Sorry if that is a convoluted question!
To err is human, but it is against company policy.

Comments

  • alchemist.1
    alchemist.1 Posts: 860 Forumite
    You have a contract for buying the third house in the chain. It is your responsibility but yo can claim your costs back of defaulting from your own buyer (if he doesn't declare himself bankrupt which I imagine is common with first time buyers who don't have any assets)
  • Samsonite1
    Samsonite1 Posts: 572 Forumite
    Sixth Anniversary 500 Posts Combo Breaker
    You have a contract for buying the third house in the chain. It is your responsibility but yo can claim your costs back of defaulting from your own buyer (if he doesn't declare himself bankrupt which I imagine is common with first time buyers who don't have any assets)

    Ok thank you. I only ask because exchange was delayed by our buyer waiting until exchange day to transfer his deposit and his solicitors somehow could not see the money all day.

    I know they own a property that they are keeping so have plenty of assets so hopefully the risk is low, but I hope nothing goes wrong!
    To err is human, but it is against company policy.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Samsonite1 wrote: »
    If you are in the middle of a chain of three and you have exchanged, what risks are there (if any) if your buyer defaults?

    I understand that if a buyer defaults at completion, they may lose their deposit,
    correct, plus may have to pick up any consequential losses by the seller
    but I am not sure what happens up the chain.
    exactly the same. Each buyer has a similar contract, with similar responsibilities, and similar penalties
    It would seem harsh to lose anything if you have not defaulted yourself
    but you will have defaulted if you fail to complete on your purchase
    or is the chain below yourself seen as your responsibility some how?
    Yes - you can sue your buyer beneath you for your consequential losses. if that includes loss of your 10% deposit on your upwards purchase, so be it.
  • Samsonite1
    Samsonite1 Posts: 572 Forumite
    Sixth Anniversary 500 Posts Combo Breaker
    I am asking my solicitor to chase the buyer to get their money in place earlier this time!
    To err is human, but it is against company policy.
  • eddddy
    eddddy Posts: 17,956 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Samsonite1 wrote: »
    I am asking my solicitor to chase the buyer to get their money in place earlier this time!

    You could do that - but I'm not sure that your solicitor would pass that message on to the buyer's solicitor.

    I think it might be an extreme example of "stating the obvious", for one solicitor to tell another solicitor that their client needs their funds in place in time for completion.

    In you position, I would just assume that's understood.
  • Samsonite1
    Samsonite1 Posts: 572 Forumite
    Sixth Anniversary 500 Posts Combo Breaker
    You would think but they left it too late for exchange so it makes me wonder how timely they will be on completion. I think assuming the obvious is dangerous.
    To err is human, but it is against company policy.
  • hazyjo
    hazyjo Posts: 15,475 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The delay was probably down to the bank. At least the chain isn't too long.

    It's stressful enough - try not to worry about things that haven't happened and aren't likely to happen. Most solicitors never see such a case in their career.

    Good luck :)

    Jx
    2024 wins: *must start comping again!*
  • Samsonite1
    Samsonite1 Posts: 572 Forumite
    Sixth Anniversary 500 Posts Combo Breaker
    hazyjo wrote: »
    The delay was probably down to the bank. At least the chain isn't too long.

    It's stressful enough - try not to worry about things that haven't happened and aren't likely to happen. Most solicitors never see such a case in their career.

    Good luck :)

    Jx

    Thanks. I am very cynical. It took 3 days to exchange then my solicitor's assistant prepared the completion statement and overcharged by £60k. You start to wonder how anything works!
    To err is human, but it is against company policy.
  • hazyjo
    hazyjo Posts: 15,475 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Samsonite1 wrote: »
    Thanks. I am very cynical. It took 3 days to exchange then my solicitor's assistant prepared the completion statement and overcharged by £60k. You start to wonder how anything works!

    lol don't worry, I'm the same - which is probably why I find it easier to tell others not to worry! :)

    Jx
    2024 wins: *must start comping again!*
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