28 day to complete

flynnj

Hoping someone can give me some advice on the following situation...

- Purchased a repossession property (subject to a public notice)
- Was aware that had to complete within 28 days
- Already exchanged contracts
- My solicitor has raised various enquiries
- There are still quiet a few outstanding
- I am also awaiting funds from an investment to be diluted and have been guaranteed the money in my account by end of this month.

Had a call from the estate agent today telling me I need to complete by Tuesday (next week) or I will lose my deposit? :shocked

Called the solicitors immediately and the person acting is doing completions all day and will call me back later this afternoon or Monday.

Naturally I am panicking now as I do not think I will be able to complete in time and from what I am being told could lose my 10% deposit (£23k approx.)

The solicitors on the seller side have been very pushy throughout the transaction which leads me to believe they won't give me any more time beyond Tuesday.

Obviously the seller solicitor is not aware that my funds are not all in place to complete but that aside I still need the enquiries answered - could this buy me some time or get an extension?

Any advice would be appreciated.

Miss_Samantha

You have signed a contract of sale that included a number of terms, including that you had to complete within 28 days, and what would happen if you breached the contract.

In general, I believe that you would only lose your deposit if you failed to complete after having received a formal notice to complete, but you would still be liable for compensation for completing late.

flynnj

What is a formal notice to complete?

Thank you for your prompt reply.

tim123456789

flynnj wrote: »

Hoping someone can give me some advice on the following situation...


Obviously the seller solicitor is not aware that my funds are not all in place to complete but that aside I still need the enquiries answered - could this buy me some time or get an extension?

Any advice would be appreciated.

No.


If you offer and exchange to buy a house subject to a 28 day completion period the underlying assumption is that you at taking it as seen.


Apart from the standard checks that the seller actually has the rights to sell the property, they don't expect you to be raising any enquiries at all at this point.


So no, this wont buy you more time

Miss_Samantha

flynnj wrote: »

What is a formal notice to complete?

Google is your friend: http://www.astonbond.co.uk/notice-complete-contracts-teeth/

Basically, as the name suggests, it is a letter putting you on notice to complete within a given period (e.g. 10 days).

G_M

What is the Completion date specified on the contract?

If you've already Exchanged. then

* why is your solicior wasting his time (and your money) raising enquiries? Whatever these enquiries come up with, you have commited legally to buy

* why did you agree to exchange if you don't have the funding firmly arranged?

As advised above, if you fail to Complete by the date specified on the contract

* you'll be sent a Notice To Complete
* your 10% deposit is at risk
* you will be liable to pay any further losses the seller incurs as a result

flynnj

G_M wrote: »

What is the Completion date specified on the contract?

If you've already Exchanged. then

* why is your solicior wasting his time (and your money) raising enquiries? Whatever these enquiries come up with, you have commited legally to buy

* why did you agree to exchange if you don't have the funding firmly arranged?

As advised above, if you fail to Complete by the date specified on the contract

* you'll be sent a Notice To Complete
* your 10% deposit is at risk
* you will be liable to pay any further losses the seller incurs as a result

Completion date on the contract is 17th Jan 2017 (so tomorrow).

I have received all replies to enquiries today and seem okay.

My funds have not come in yet.

Been told by the solicitor that I will have to py interest on number days to complete should the seller side exercise right to issue notice to complete.

Asked solicitor to request for extension on completion but highly unlikely they would accept.

I understand my deposit is at risk but what other costs could I end up with if I don't complete even after this notice period? Wanted to ask my solicitor but he already seems nervous about the whole thing which in turn is not giving me much confidence.

G_M

I'm not surprised he's nervous!

He has a client who does not have the money to Complete. There's really no excuse.

I'm not sure what you are diluting your money with (white powder?) but you should have sorted this before exchanging.

If you fail to complete, then in addition to the 10% deposit, the seller could claim any consequential losses.

Typically this might be the penalty he is forced to pay for failing to Complete on his onward purchase, but fortunately for you this won't be relevant with a repo.

Extra legal costs spring to mind, plus any costs asociated with owning the property for longer than expected (utilities, insurance, council tax), but basically anything the seller has to pay out as a result of your breach of contract.

Mr.Generous

Were the queries you raised worth £23k to you i.e. if they came back unsatisfactory would you have walked away and given up your deposit? If not, then why waste time and money raising them?

I'd be trying to get a bridging loan until your finances are available, probably cheaper than meeting someone else's costs once solicitors get involved.

flynnj

Mr.Generous wrote: »

Were the queries you raised worth £23k to you i.e. if they came back unsatisfactory would you have walked away and given up your deposit? If not, then why waste time and money raising them?

I'd be trying to get a bridging loan until your finances are available, probably cheaper than meeting someone else's costs once solicitors get involved.

Admittedly raising of enquiries was to buy time whilst I awaited for rest of money to come through.

My solicitor has asked them for an extension on the completion but the seller solicitor are not having any of it. They are already shouting breach of contract claims.

Have been issued with a notice to complete so have 10 days or risk losing deposit and everything else that will come with it.

My money will be in well before the notice expires so hoping only loss incurred will be the daily interest on balance.

hazyjo

tbh you seem to be taking it quite lightly. It is pretty major - something most solicitors will incur once or never in their career. Really not sure who allowed you to exchange without finances in place - I presume it's your solicitor who needs a good kick up the proverbial!


Are you sure you can't sort a bridging loan or get to your funds quicker?


Jx