Failed to Complete - Breach of Contract

Doozergirl

If it helps you feel better, most transactions that don't complete on the day do end up completing very soon after. It has happened to us, our buyer was devious and shot himself in the foot as he didn't understand that you can't gazunder after exchanging contracts. Thankfully we were selling without chain and just ended up with some extra cash in the form of five days in interest on the full purchase amount from him.

You haven't actually said if you had exchanged yourselves on sale or purchase. Hopefully not. Still stressful but without any liability yourselves.

Fingers crossed for you that the buyer produces the cash after all.

steeeb

The house we're buying is empty and in probate.
We're renting our house back off of our buyer so we have no costs either.

Our buyer is a BTL investor they were initally no chain and cash but 2 weeks ago decided to port a mortgage from a property that at the time had exchange due to conplete 24th.

Our buyer got all there stuff sorted and we all exchanged yesterday for completion today.

It turns out the buyers buyer is also a BTL investor and after exchange on the property to be ported decided to get a mortgage.

Our buyers solicitor is an idiot for exchanging without a mortgage offer in place from their buyer.

Estate agent thinks itll get sorted next week, not heard back from solicitor yet.

steeeb

So to sum up our buyers buyer doesnt have a mortgage offer and exchanged 2 weeks ago.

Doozergirl

It's your buyer's buyer's solicitor that is the idiot. They check the mortgage offer is in place. But if their client told them it was cash, didn't update them and it was a rush?

steeeb

Doozergirl wrote: »

It's your buyer's buyer's solicitor that is the idiot. They check the mortgage offer is in place. But if their client told them it was cash, didn't update them and it was a rush?

I think it was cash but after exchange decided to get a mortgage and thought 2 weeks would be plenty of time. This is from the agents mouth (via the buyers solicitor via their buyers solicitor etc), but am assuming it is the case.

So either it didn't filter through to my buyers solicitor or he's an idiot for exchanging with us without checking he had the mortgage offer.

In any case, someone's an idiot and it's not me for a change.

I don't think we'll have any costs if it does all go through, I just don't want to be in a position where in 10 days time the vendor of my purchase keeps the deposit and re-markets the property and I lose it.

I'm hoping it all gets sorted next week.

These are both (my buyer, and their buyer) big time BTL investors with hundreds of properties - surely they can get some cash together and sort the problem out then sort the mortgage out after it. (I assume they'd do that as a last resort when it nears 10 days of notice to complete is served).

molerat

Any costs you incur, including the loss of your deposit if it goes completely pear shaped, will be passed up to your buyer who will then add his costs and pass up to their buyer. The only thing you could lose is the house, all financial losses will be passed on.

steeeb

molerat wrote: »

Any costs you incur, including the loss of your deposit if it goes completely pear shaped, will be passed up to your buyer who will then add his costs and pass up to their buyer. The only thing you could lose is the house, all financial losses will be passed on.

My buyer is a limited company, ive no idea who their buyer is but is apparantly a big BTL investor too so assume its also a limited company.

Is that something to worry about if the companies then dissappear? (Ive checked online and my buyer at least has looooooads of assets with mortgages etc I'd assume they can't just disappear?

Doozergirl

Oh heck. I'd deal with one problem at a time. Let's not think about the Limited Company thing.

It's only day 1. You don't forfeit your deposit after 10 days, it will take longer to unpick all of this.

steeeb

Can't help but worry. I've had nothing but worry for the last couple of weeks since my buyer decided to not be a cash buyer any more!

If it all goes through - I won't be moving again! I can say that for sure

We'd have got the keys by now planning out exactly what we were going to do, got an architect scheduled for Tuesday. Life insurance etc. linked to the mortgage all kicks in today (not that it really matters, like). I cancelled Virgin yesterday (but given a month notice, again - doesn't really matter). Just want it all to be over.

I paid deposit/rent for the tenancy agreement which I assume is no longer valid since we'd be trying to rent our own house from our buyer when they don't actually own the house yet - which I again have no idea what the process will be there, I assume the tenancy agreement can just be re-issued once we've actually completed.

End of ramblings. I need to lay down