Notice to complete : question about notice period

skinch

We are in a chain about to exchange and have been asked to vary the contractual terms to include a 'notice to complete period' on a property purchase down from the standard contract terms of 10 days to 5 days. This is becuase someone further down the chain is very close to the end of their mortgage offer period.

I am aware that it is very rare indeed not to complete. Equally we have every intention of completing and have not required a mortgage on our forward purchase. I am therefore assuming that therefore no reason why not to agree to a 5 day notice period.

Is there any major risk in doing this ?

SmashedAvacado

Firstly - there is something separate in conveyancing called a "notice to complete" which is served on breach of the obligation to complete. You're not talking about that (as far as i can tell).

you're presumably talking about an obligation to bring forward completion on notice to five days (to fit in with other requirements of the chain). As long as you are confident you can get the money to your lawyers (you can do that as early as you like), and it suits you in terms of timing, there's no issue.

skinch

Thanks for your response smashed Ava. I am talking about the "notice to complete" served on breach of obligation to complete. I understand stadard contractual terms woudl be that this notice was a 10 day period. And we [and rest of chain] are being asked to reduce it to 5 days.

SmashedAvacado

Say no. 10 days is short.

This is their ability to take your deposit and sue you for damages for failing to complete on time. Of course, it is your failure to complete on time that would make you liable, but there are some things out of your control - like if you get knocked over by a bus and land up in hospital.

They shouldn't be negotiating on this type of thing. What's their issue?

eddddy

SmashedAvacado wrote: »

They shouldn't be negotiating on this type of thing. What's their issue?

I guess it's because....

skinch wrote: »

This is becuase someone further down the chain is very close to the end of their mortgage offer period.

So I guess that person further down the chain might pull out if you refuse to agree, (unless they can get a mortgage offer extension).

So it's a case of weighing up the risk of you, for example, being hit by a bus - versus the pain of the chain breaking.