Solicitors hold all the money but delaying exchange.

berger20

Hi all,

I need an external opinion on this one.
I have terrible solicitors, first 3 weeks were fine, but then waited 4 weeks for local authority search and a report. Then signed the mortgage deed and handed over deposit.

After a lot of chasing (they don't respond to email or phone), I finally got a call stating they were going to exchange that day. By the end of the day they pulled out an excuse, something they should have done ages ago.

Almost a week later, they have a completion date (set by the seller as they're getting tired of waiting), my whole deposit, all their fees paid, bank sent over mortgage funds and everything has been signed and agreed a while ago.

If they fail to exchange:
- How can I get all my money back (less fees)? (Hopefully sharpish for the next, more capable solicitor)
- How do I get the mortgage funds back to the lender?

Alter_ego

7-8 weeks and you're complaining?

berger20

Actually 12 weeks in total, was supposed to be a 28 day exchange and the solicitors sales agreed to that, though I'm sure they'd say anything for a sale.

berger20

I should have said, it's a new build, no chain and standard mortgage (no gov schemes).

AnnieO1234

Something isn't right here. They wouldn't have drawn down the funds without a completion date. Have you tried going into their offices?

berger20

Tried but was flooding so couldn't get there, sadly not local..
It's just an office though, no reception from what I can see.
Looks like that's what tomorrow is going to be, long journey and lots of begging.

Hoploz

What reason have they given for not exchanging? There is normally a reason, like they are waiting for x paperwork or something. Or in my case the main solicitor was on holiday and the fill-in person didn't want to do it so it was delayed for a day or so.

berger20

They wanted to get all the money from me and the lender ready before exchanging.
Kinda sounds right/fair, but I didn;t hear/read anyone experiencing the same setup.

The company faq states they want the money a day before exchange so the bank can't get it back.
Though in retrospect I guess that it's rare a lender pulls their funds back last minute..

G_M

berger20 wrote: »

Hi all,



If they fail to exchange:
- How can I get all my money back (less fees)? (Hopefully sharpish for the next, more capable solicitor)
writie a short polite letter asking them to return your money
- How do I get the mortgage funds back to the lender?
writie a short polite letter informing the lender the purchase has fallen through and suggesting they recall their funds

Without knowing full details it's hard to comment, but it does not sound that bad.
Exchange often gets delayed for a multitude of possible reasons, even at the last minute.
It is usual for solicitors to get the money in place in advance.
What does sound unusual is the solicitor drawing down the mortgage funds before Exchange (unless Exchange and Completion were scheduled for the same or next day.)

berger20

Exchange was supposed to be a week ago, but due to the lender being uber strict on wording they wouldn't give out the funds. So delayed another week, so exchange and completion got closer everyday we didn't exchange.

So short letters all around, if it comes to the worst.
And process sounds reasonably legit, and delays even at this stage are semi-normal..
Well fingers crossed we do exchange soon, the stress has been heart-aching; like a breakup.

AnnieO1234

I'd be concerned at this point that the solicitor isn't doing a moonlight flit with all client monies. Get to their prices pronto and check if anyone has said anything about them recently online. In my experience solicitors are usually incredibly wary of holding onto mortgage funds for long and would usually return them when exchange/completion has been delayed. Xxx