is it normal contract is still not exchanged near completion date

Lovem

We exchanged and completed the same morning.

wantonnoodle

This is normal, though I fully understand how stressful it can be.

We were supposed to exchange on the 17th February and complete on the 24th February.

In the end, due to various issues and misunderstandings on the part of the conveyancer, we ended up exchanging on the 23rd, and still completed on the 24th. We only got confirmation that completion would be that week on the 22nd, as, being so close to completion, the conveyancer wanted to have confirmation the funds would be available before exchanging. It hadn't helped that he was on holiday the week we were supposed to exchange and his cover wasn't sure what was going on. It was only a sternly worded email from our mortgage broker after he phoned our lender that kept things on track for the 24th.

So, in short, it can be done, but it will be incredibly stressful.

Richard_Webster

as, being so close to completion, the conveyancer wanted to have confirmation the funds would be available before exchanging.

So when your desired completion date gets really close and everything is still up in the air with no exchange, there are two ways your solicitor can deal with it:

1. he can request the funds for the desired day, having warned you of the extra CHAPs fees (and the cost of his time) involved in sending the money back if it doesn't happen; or

2. he can wait and not request the money until the last outstanding point has been cleared - but still not exchange for fear that the lender will not provide the money quickly enough.

Both methods carry risks, and some lenders are not known for sending money at the last minute, so method 2 won't work with them. If you do not want the stress then wait until all the outstanding points have been cleared and then agree a date for completion 10-14 days ahead.

Never believe what estate agents or other parties tell you about the readiness of the chain. I can't count the number of times my clients have phoned me to tell me that "everybody has agreed [a certain date] ". I warn them this may not be the case, but they are quite insistent. We start the process of trying to exchange and later in the day the message comes back that someone further up the chain is nowhere near ready.

deFoix

G_M wrote: »

Too late taking it out later - the house might burn down but you'd still have to buy the ashes at the agreed price!

Just out of interest has this ever happened? Surely in law the contact is for the buyer to buy a house not a heap of rubble. If the house burnt down between exchange and completion wouldn't the seller be in breach of contract?

Richard_Webster

Surely in law the contact is for the buyer to buy a house not a heap of rubble.

No it isn't. It is to buy the land and whatever happens to be on it.

G_M

Richard_Webster wrote: »

No it isn't. It is to buy the land and whatever happens to be on it.

which is why the

http://www.lawsociety.org.uk/support-services/documents/standard-conditions-of-sale-5th-edition/

say:

5. RISK, INSURANCE AND OCCUPATION PENDING COMPLETION
5.1.1 The property is at the risk of the buyer from the date of the contract
5.1.2 The seller is under no obligation to the buyer to insure the property unless:
(a) the contract provides that a policy effected by or for the seller and insuring the
property or any part of it against liability for loss or damage is to continue in force, or
(b) the property or any part of it is let on terms under which the seller (whether as
landlord or as tenant) is obliged to insure against loss or damage

deFoix

Interesting, any particular reason why this is? Just seems a bit backwards to me as a layman why a buyer would agree to buy land (with a house on it) rather than the house itself as a complete and undamaged structure!

cidfenmaria

Today is the completion date

Just got told by my solicitor that they are still waiting redemption figure on the other end, and hopefully receive today, lender has transferred the mortgage fund and I am liable to pay £36 to return it if it's not completed today or Monday.

by the way how long does that redemption figure thing take normally, how likely would it get sorted?

stress

nicmyles

Interesting, any particular reason why this is? Just seems a bit backwards to me as a layman why a buyer would agree to buy land (with a house on it) rather than the house itself as a complete and undamaged structure!

How would you buy a house without buying the land it occupies?

nkkingston

Boler1985 wrote: »

Interesting, any particular reason why this is? Just seems a bit backwards to me as a layman why a buyer would agree to buy land (with a house on it) rather than the house itself as a complete and undamaged structure!

Freehold: you buy the land and anything that's on it.
Leasehold: you but the house but not the land it's on

There's a reason why people strongly discourage you from the latter...