Completion day

helloHTB

Hi. Yesterday was our moving day. My bf and myself had bought our first time home which was ready for us to move into as the house was empty. The solicitors had agreed on this day and everything was in place. I received a phone call around 11 to say they would inform me when i could collect the keys... still no news at 3. When i rang back they explained that there was some complication on the vendors mortgage application and it had just came to light that day. His mortgage application had apparently been declined which was stopping the completion to go ahead. Our mortgage money had to be sent back as the solicitors aren't allowed to hold it and now we are waiting to see if he still wants to go ahead with the sale. The house is empty as he lives in accommodation but the estate agents are saying he would be 'homeless' if the sale was to go through.

So i am now in the position where I'm waiting for him to make a decision. Is the vendor actually allowed to do this on completion day. Ive paid my solicitor just under £900 which i wont get back and we have closed HTB ISA down which we wont be able to re open and lost £650 each on the scheme. I personally feel his solicitor should of checked his mortgage was in place way before completion date. We had to prove a mortgage offer from day one.

Am i in the the position to appeal if he does drop out?

davidmcn

Had you exchanged?

helloHTB

As far as i know yes, it was just the money that was getting exchanged yesterday, all contracts and everything had been signed 1 week prior to this

fairy_lights

if you've already exchanged then he can't just 'drop out'. What has your solicitor said about this?

david1951

You need to confirm with your solicitor that you have exchanged contracts. These might have been signed etc. but not actually exchanged.

If you have exchanged contracts then there are various things you can do, including seeking compensation for any loss incurred (i.e., solicitor fees, survey fees, moving costs, etc.) as a result of the vendor failing to honour the contract. Your solicitor will be able to explain more.

If you haven't exchanged contracts, then the vendor can pull out for whatever reason and you have no way of seeking compensation from them, or anyone else.

m0bov

If you have exchanged then you can claim for all your costs, if you need temp accommodation then book into a hotel and claim this back. You need to find out what your Sol intends to do as failing to complete can cost the vendor dear. Ask your Sol to take it to the next stage.

m0bov

Ask your Sol, "Have I exchanged?". Yes, or No.

helloHTB

Thank you for all the advice, i will ring now to confirm if its been exchanged. Fingers crossed they had

m0bov

Let us know, but I suspect not. (

helloHTB

contracts hadn't been exchanged, they were waiting for clients instruction, which then obviously got stopped

m0bov

Ok, that's a shame looks like your high and dry. I would suggest speaking to the estate agents and ask them to put pressure on the vendor but it looks like the sale has fallen through. You could start viewing other properties.