Vendor trying to set completion date before exchange

hobbeskat

We've just received our offer (most other work is done, the offer has dragged due to specialist reports) and the vendor wants completion 5 weeks from now.

We are renting and don't want to set a completion date until exchange - we really don't want to leave ourselves potentially homeless! Can I just say this?

madvicker

Yours and their solicitors will need to agree a completion date before they can complete the exchange. Kind of chicken and the egg. So you're shooting yourself in the foot by not telling your solicitor when you're comfortable to complete.

hobbeskat

Sorry, this communication is through the estate agent. So I should be telling my solicitor instead?

jennhg88

You will need agree a completion date to exchange (unless buying a new build). But you cannot complete on that date if you have not exchanged before that date. So don't give notice on your rental until you have exchanged and you won't be homeless. There is the option to exchange and complete same day but super risky and not advised.

LandyAndy

hobbeskat wrote: »

We've just received our offer (most other work is done, the offer has dragged due to specialist reports) and the vendor wants completion 5 weeks from now.

We are renting and don't want to set a completion date until exchange - we really don't want to leave ourselves potentially homeless! Can I just say this?

This could be perfect for you if you can agree the exact completion date and exchange in the next few days. You can then give the required 1 month notice on your rental to end the day of or the day after the move.

Silver_Queen

The completion date isn't set in stone anyway. If things come up, the completion date can be changed.

pinkteapot

Everyone in the chain discusses (via EA and/or solicitors) completion date before exchange. They have to because the completion date is included in the contract which gets exchanged.

However, the agreed date only becomes legally binding on exchange.

Normally, dates are discussed when everyone's close to being ready to exchange. There's no harm in discussing it earlier but if mortgage applications, searches, legal queries etc take longer then it'll change.

What you can do is say to your vendor that you need at least a certain period (1 week, 2 weeks, whatever you like) BETWEEN exchange and completion. You could say "Because we need to give notice on a rental, we want at least two weeks between exchange and completion, so we're happy to work towards a completion date of X but we'd need to exchange by Y or it'll need to move back."

Agreeing completion date, and the length of time between exchange and completion, is just another negotiation between everyone in the chain. So they may say no to a gap as long as you want, and then you just have to haggle.

No harm in this happening through EA rather than solicitor - they're often more efficient at making all the phone calls back and forth between parties. You do need to tell your solicitor any dates people want to do as they're the ones who need to make it happen, and can advise on whether it's possible (given legal work outstanding).

eddddy

You are being asked about a 'target' completion date - you won't be bound by it.

It's useful to have this 'discussion' now, so that everyone in the chain understands each other's constraints.

For example, others in the chain might say...

"I'm a teacher, it's hard for me to get time off during term time, so I want to complete during half term."

"I'm away on business for the first 2 weeks of Nov, so I have to complete before or after that."

etc, etc.

And you might say "I don't mind when we complete, but I need 4 weeks between exchange and completion, to give my LL notice."

Some people might get what they want, others might have to compromise.

And if the legal stuff isn't ready in time, it won't happen anyway. At this stage, do it through the EA - it'll be faster and easier. And tell your solicitor the outcome.

Hoploz

You shouldn't give notice on your rental before you exchange as it is not certain to go ahead until this point.

You should allow for some overlap as its unlikely the rest of the chain will want a month, or whatever your notice period is, between exchange and completion.

This is a good idea anyway - a luxury most people don't have - as it means you can move over a number of days rather than having to rush everything on the one day like people selling and buying together have to do.

giraffe69

The completion date isn't set in stone anyway

I don't think this is true. Once exchange has happened the completion date is set in stone.

G_M

The completion date isn't set in stone anyway

giraffe69 wrote: »

I don't think this is true. Once exchange has happened the completion date is set in stone.

I think Silver Queen meant a date discussed before Exchange isn't set in stone, which is what the OP is talking about here.

As explained, preferred dates can (should) be discussed, but it only gets 'set in stone' when the contracts are Exchanged because .... umm.... that is when the contracts become legally binding!


Hence the term 'Exchange of Contracts'!