Should i exchange with risk of non completion.help

Ftbftbftb

So I am a FTB. We are almost at completion. My vendor has offered on a Vacant property - A and I am purchasing off him property B. It appears that the current owner is terminally ill. I have just found out this evening and looks like won’t have long. We are about to exchange. My vendor has stated they will need 3 weeks to complete. This is a huge risk. What if the owner of Property A was to pass away. What would happen in this case? As I understand, property A is being sold by the son who has power of attorney. Can anyone advise on possible risks and advice I should consider? My solicitor was off this weekend and returns to work on Thursday.

buggy_boy

Slightly confusing, power of attorney means they are acting basically as the owner. Once you have exchanged that is a binding contract, even if the actual owner dies as long as you have exchanged the contract is still valid.

davidmcn

If exchanged then the executors are bound by the contract - but in practice would be in breach because completion would be delayed until they get probate. So would be liable for costs arising from the delay.

If your vendor decides not to move into alternative temporary accommodation (I'm assuming he lives in property B?) and wait for the executors to pay his bills then he'll be in breach of your contract with him by not providing vacant possession, and you'd be entitled to pursue him for any costs you incur.

If death occurs before exchange then all bets are off.

AnotherJoe

This sounds like about the only situation I've seen here where same day exchange/complete would be beneficial.

Is the person who is ill, living in B? Whats the hold up? Time to get them into a home / hospital, clear it etc perhaps ?

I dont know what happens if the person dies after exchange, it sounds like prospect of a huge mess.

Whats your plan if the person dies, since probate can take months. Would you wait or look elsewhere?

Ftbftbftb

Hi
Really grateful for the replies.
The terminally ill person is top of the small chain. House A. At present his son has power of attorney for the sale of the house.
My vendor who I!!!8217;m buying from is in house B ( who is buying house A)
They have said they need 3 weeks to complete. They are hoping to exchange on thursday.

Now that I know the actual owner is terminal and may not have long I!!!8217;m not sure what my best next step would be.

I wouldn!!!8217;t be happy to force my vendor out and make them homeless if we exchange and then they are unable to complete.

If the owner does pass away, does that mean the house would definitely go to probate even though we have exchanged?

I guess it!!!8217;s my vendor that is in a slightly worse scenario. And I!!!8217;m not sure to just hold off exchange and wait but thEn I could end up waiting a long time or risk it and exchange, and then only to find out can!!!8217;t proceed. I have my heart set on the vendors house and wouldn!!!8217;t want to lose it.

Hope that information helps. Really appreciate the advice.

glennevis

POA only applies to the living. Once the terminally ill person dies, their son's authority to act dies with them.

Slinky

What's your situation, are you in a rental you've given notice on? If the completion didn't take place where would you go?

It seems to me that if you're able to have a plan of where to live for the scenario of not being able get into your new home, should the worst happen, then the risks in the chain after exchange are with all those above you.

davidmcn

Ftbftbftb wrote: »

If the owner does pass away, does that mean the house would definitely go to probate even though we have exchanged?

Yes. Only the executors are able to transfer title, and they need to get probate before they can deal with anything in the estate.

It's really your vendor's risk - I should have said another possible solution is that the executors might let him move in while they await probate (risky for them but cheaper than paying his hotel bills etc).

AnotherJoe

I think you need to explain to your vendor that this is a big risk for both of you, and you need a Plan B. davidmcns solution might work for vendor.

silvercar

Your vendor would have the (sensible) option of completing his sale to you. Whether he then is able to proceed with his purchase is not your concern. Your vendor could move into rented.

pinkteapot

davidmcn wrote: »

If exchanged then the executors are bound by the contract - but in practice would be in breach because completion would be delayed until they get probate. So would be liable for costs arising from the delay.

In this case, you'd think the solicitor acting for the terminally ill vendor of property A would be advising them against a three week gap between exchange and completion...