What are the risks if your buyer delays completion?

Samsonite1

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!

alchemist.1

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

alchemist.1 wrote: »

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!

G_M

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

I am asking my solicitor to chase the buyer to get their money in place earlier this time!

eddddy

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

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.

hazyjo

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

Samsonite1

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!

hazyjo

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