Solicitor exchanged without following mortgage advice

Lkp21

Hi,

Hoping someone may be able to help. 🤞🏻
We are buying a new house and the lenders valuation came back with some concerns and asked for a structural engineers report OR a chartered buildings surveyors report.
We paid for a Chartered Survey report which we sent off to the solicitor on 30th October. On 6th November we were informed that we had exchanged. With a completion date of 24th November. Presuming everything was in place.
On 7th November our solicitor asked for the report from the Chartered surveyor. We informed her this had been sent over a week ago. The 8th November we received notification that the lenders were not happy with report and wanted a structural engineers report. Conveniently our solicitor wasn’t working on the Thursday so we rushed to find someone to get this report done. Also arguing that the lenders had state either report in the written mortgage offer sent to us and solicitor.
Today we received the structural engineers report and this has been forwarded to the solicitor however there is structural work that needs addressing with costs between £7,500-£10,000.
Now we are worried, concerned and frustrated that the lenders will not lend us the money to complete. On speaking to our financial advisor he thinks they will retain that money until works have been done but we do not have this money.
Surely our solicitor shouldn’t have exchanged before this was sorted. Where do we stand if lenders do withhold money. Could we claim negligence through our solicitor?

jbainbridge

The solicitor's job is to make sure everything is ok BEFORE exchange. I'd be asking the solicitor what they are going to do about it.

Were you aware that you were exchanging contracts? Normally you would be contacted before this happens.

dpearson86

I'd be making a claim under the solicitors Professional Indemnity insurance if they exchanged before you gave your go ahead.

G_M

Is the solicitor also acting for the lender or does the lender have a different solicitor?

It sounds as is the solicitor Exchanged on your behalf without your consent.

If also acting for the lender, he appears to have Exchanged without the lender's consent.

Write (yes, a letter) to whoever is named at the solitor's firm as the appropriate person for their internal complaints procedure (look it up).

Insist that in the event of the lender not releasing the full mortgage for Complettion, the solicitor's firm should make up the difference.

But, to be absolutely clear - is it possible you authorised Exchange? Check all correspondance, emails etc carefully to see if the solicitor gave you the anticipated Exchange date and asked for your approval, and whether you responded (and how).

3mph

On the day of exchange my solicitor rang me and said "I know you really want the flat but I still have to check before exchanging" so you have to give explicit instructions.

SuboJvR

Our solicitor also called us both on day of exchange (both at work in separate places) to confirm proceeding.

Thrugelmir

Lkp21 wrote: »

We are buying a new house and the lenders valuation came back with some concerns and asked for a structural engineers report OR a chartered buildings surveyors report.
We paid for a Chartered Survey report which we sent off to the solicitor on 30th October. On 6th November we were informed that we had exchanged.

Who asked?

Why the time delay? Betwen the mortgage valuation and the follow up report.

Lkp21

We had an email from her on the 6th November to say she was hoping to exchange contracts that day.
Then another to say they had been exchanged.
The report on Santander’s mortgage offer states the conveyancer must make sure all the conditions in section B are in place before they can complete the mortgage. Section B highlighted the need for a report from structural engineer or chartered building surveyor.
This report was send to Santander after exchange.
We assumed our solicitor had this all in place as she had the report for a week before the email to say she wanted to exchange.
Just waiting to hear back from Santander now to see what they say.

cjmillsnun

If Santander says no, your solicitor is up **** creek without a paddle. They absolutely must seek confirmation from both you and the lender that they have authority to exchange contracts.

On the day of exchange my solicitor emailed me the following

Hi Chris

I’ve received the ok to proceed from Halifax and I am now ready to exchange!

Are you still wanting to complete on the 23rd August?

I just need to get the sellers solicitors to confirm the date and take authority and I will then call if we can manage to do this today.

(my boldface)

Half an hour later she phoned me to take final authority from me that she could exchange. Only then were contracts exchanged.

G_M

Hi Chris

I’ve received the ok to proceed from Halifax and I am now ready to exchange!

Are you still wanting to complete on the 23rd August?

I just need to get the sellers solicitors to confirm the date and take authority and I will then call if we can manage to do this today.

Fixed your bold for you.

The 'authority' comes from the client(s); the buyer (and lender if also acting for lender)

csgohan4

they weren't recommended by the Estate Agent were they???