Remuneration due to missed completion?

rcast1989

Im sorry if this question has been asked previously but scouring the thread i cant find a definitive answer.

As the buyer of our first home, OUR solicitor is now at fault of breaking contract and delaying the agreed upon completion date which was set out in our agreement. Their contract with us states 6-8 weeks and that any delays would be directed us in good time.

It is now 6 days before completion and only now have our solicitors told us that the exchange and completion will be delayed due to outstanding paperwork on their side, with no contracts written or signed and no deposit transfer being completed to date.

This has left us basically homeless from the end of this week!

We had moving van paid for and arranged as well as our current rentals new tenant moving in due to our lease ending with 30 days notice to coincide with the promised completion date. So we must move out.

My question is are our solicitors liable for costs incurred due to delay before exchange and completion? We must now lose our hire deposit as well as pay for storage of our affects and pay for accommodation while the final paperwork is completed. All in all it looks like the date will be pushed back by at least 7-10 days.


If it was in our contract and we have email threads with evidence showing the agreed completion is there any fall back that our solicitor should be incurring the costs of our storage and accommodation?

Thank you in advance

Lokolo

Don't book removals until exchange. Nothing is guaranteed. I don't think the solicitor is liable for those costs.

Fosterdog

You've jumped the gun by ending your tenancy and booking removals before exchange, until you've exchanged there is nothing to stop you or your seller from pulling out of the sale. What would you do if your seller changed their mind tomorrow and no longer wanted to sell? What if they want to sell but want to wait for completion until they get back from their summer holiday?

Solicitors can estimate how long these things will take but they cannot guarantee it especially when until they begin the work they don't know what queries and issues could pop up, they are also relying on third parties for searches and responses.

You doing things too early in the process is nobody else's fault.

rcast1989

Thanks for the quick response.

We have asked our solicitors a total of 12 times over the course of 8 weeks whether or not everything was going ok to meet our 4th March agreed upon completion date with no cause for concern.We have to give 30 days notice as is generally accepted to move out of our current rental. As such we specifically asked before doing so whether the date was still achievable.

We were acting on the advice of our solicitor that this date would pose no issues. As first time buyers we take the word of someone who is paid to give expert advice as their bond as well as sticking to their contract,

Surely if they agreed in writing over 12 times that the date would not be an issue and then subsequently tell us less than a week to go that it wont be their must be some fallback?

caprikid1

You intend to attempt to sue a solicitor ????


Good luck.


You can always ask.

TBagpuss

It's unlikely - it would be a very unusal contract with a solicitor, they don't usually have any control over the date for completion, so it would be very strange if they were liable for it moving.

It sounds as though they have told you that the oiginal date won't be do-able, and it may well be that they did tell you in a timely way - i.e. as soon as they themselves knew.

Until you exchange contracts the completion date is not set in stone, so it is generally best not to give notice or to book removers until you have exchanged.

If there is outstanding paperwork which your solicitors need to deal with then of course you can press them to do it as quickly as possible, and if you think that they should have picked up on this more quickly then you can raise that as a complaint, however, I would double check first whatt the reason was for the delay. It may be that they had not done the paperwork before because they needed outstanding information from you or from your sellers, for instance.

davidmcn

What exactly did they say? What is the "outstanding paperwork"?

TBagpuss

However, the wording matters. If you asked abotu the completion date and were told todl "Yes, we will definiately be able to compelte" that is different from if they said "Yes, it should be OK" or "We're still epsectimng obe able to complete" or something of that sort.

If they categorically stated that you *would* complete on 4thm then by all means send them a awritten complaint, with a copy of that written assurance"

aries_163

As above, nothing is set in stone until exchange happens. It is only at this point that a completion date is set. As you approach exchange, your solicitor would start to ask you about convenient completion dates and then propose these up the chain. Nothing is firm at that point though, until contracts have been exchanged with your seller.
Usual advice is to not give notice or firmly arrange removals until exchange has happened.

You say that your solicitor has broken the contract between you and them. What exactly does the contract state with regards to the timeframe? I’ve bought 2 properties in my life so I’m no expert but I cannot recall a timeframe ever been given by the solicitor from the outset. They just don’t know at that point how long it will take.
You’re not buying a new build are you and they developer has stated they want it all wrapped up in 6 - 8 weeks?

rcast1989

Basically they said that there was delay in sending off the search pack with registry the land registry search etc.
They would not start drafting the contract or send us the mortgage deed/ service agreement etc until the search pack results came back.

Subsequently when they did get the searches back they raised questions to the seller which were answered within a day. However because of the delay filing the search pack there is now no contracts signed or even drafted and no mortgage deed signed. We havent seen a shred of paperwork to sign.

I am unsure whether this is the norm to not start drafting documents until after the search pack comes back but the delay in sending the initial pack delayed the results coming back which in turn delayed responses to any questions and subsequently this knock on affect has mean that the mortgage funds have not been requested, no forms to sign as they haven't been drafted and no requests to turn back on utilities such as water to the property.

rcast1989

"We aim to complete your matter in a suitable time frame but if there are any issues which prevent us from doing so we will advise you as soon as the same become apparent to us. As your matter proceeds, we will keep you updated where there is a significant change but based on the current information we anticipate that your matter should complete within 6 – 8 weeks."

"To ensure that your expectations are met could you please notify me of any special requirements you may have, such as any important time limits to meet or specific ways to contact you to keep you informed of the transaction’s progress." this is part of our contract from 01/01/2019

How can we be expected to give notice on a rental if we dont agree at least 4 weeks in advance on an exchange/completion date. This is specifically why we did set out and agree to such a date. Otherwise we owuld be paying rent for a month after completion.

Just FYI this is a vacant possession, no onward chain, no previous owner. it is council own new refurb, brand new, never lived in