Is The Completion Date Set In Stone When Exchanging Contracts?

rosieraspberry

I'm in the process of buying a house but the seller is taking forever and keeps delaying.
If we get them to agree to exchange contracts with a completion date in the contract do they have to complete on that day or can they stall or delay further?
There is no chain, the seller is moving to rented accommodation after a divorce.

GrumpyDil

If you exchange with a fixed completion date then yes that date is set in stone..

phillw

rosieraspberry wrote: »

If we get them to agree to exchange contracts with a completion date in the contract do they have to complete on that day or can they stall or delay further?

There is nothing to force a completion on the agreed date, but they would be in breach of contract and you could sue them for damages if you wish to but there is no guarantee that they would pay them.

It's not illegal to not complete and if you send the boys round with baseball bats then you'd get in trouble. You can't really force anyone to do anything they don't want to.

Murphybear

GrumpyDil wrote: »

If you exchange with a fixed completion date then yes that date is set in stone..

Surely there must be procedures in place in case the vendor is not physically in a position to complete eg had an accident and is in hospital

AnotherJoe

There are all sorts of unlikely edge cases, but once exchange is done, which means a a fixed completion date, it's going to happen or you can take legal action. This is no doubt why your vendor isn't exchanging yet.

sannytwist

Seems that buyers are penalised far more than sellers for not meeting entry dates. Most of the advice seems to indicate that buyers are legally binded to buy the property and can sue for a number of damages. However, what are buyers likely to get in compensation if the seller for example doesn't move out before the entry date and this goes to court? anyone had experience.

AnotherJoe

I don't think it's correct that buyers are penalised more than sellers as a rule.
It's just that It just comes down to costs. Whoever doesn't complete is responsible for the costs.
If the buyer is also a seller then those costs can mount up substantially because they move down the chain and accumulate. If the buyer doesn't complete then their costs would extend both ways.

Eg say it's a -> b -> c -> d. And d doesn't move out so is at fault . A sues b, b sues c, c sues d. D ends up paying c's cost which ultimately includes a & b as well. But if c didn't complete then everyone below them sues c and c has to pay for everyone above them as well (maybe the chain extends above d)

DigForVictory

I suppose it is far too late down the line to spook the EA with asking to see other properties. A pained word or two might get them to realise that much more fannying around & you blinking well might take your business elsewhere.

That said the seller is in a postilion where it's costing them nothing to be a flitterwit - so maybe it isn't too late to make "I want to buy, why is the seller dithering" noises & see if the EA can apply a boot or even get an answer.

If it is upcoming imminent legal whatsits, then EA should have mentioned this as how long you can be expected to live, partly packed, I do not know!

SmashedAvacado

It’s not ‘costs’ or ‘compensation’ that you get - it’s damages for breach of contract. Ie the losses you directly suffer as a result of the failure of the seller to complete. You have a duty to mitigate those losses. Losses would typically include the incidental costs incurred, costs of finding an alternative property to buy, in an upward moving market it could also include the increase amount you’d have to pay to buy a similar property

AnotherJoe

Its also possible the seller is changing her mind about moving into rented, which is a common story here. Or with a divorce happening they may be having a battle with their ex over costs or splitting the proceeds, or it may be the ex that is causing the holdup.

Or worse case, you are the patsy, she doesn't want to move out so if she can annoy buyers enough they will pull out then she will tell ex that its not her fault and then she gets another 6 months in the house, possibly whilst ex is paying the mortgage !

I suggest you have a word with the EA and let them know you are starting to get worried and may have to look elsewhere.

davidmcn

Murphybear wrote: »

Surely there must be procedures in place in case the vendor is not physically in a position to complete eg had an accident and is in hospital

They'd be in breach of contract in the same way that they would if they were delaying deliberately. Even dropping dead isn't an excuse.