Exchange of Contract / Completion deadlines.

homeless9

First time, unknowledgeable idiot here, needing help.....

The exchange of contract and completion dates..... how strict are these adhered to and is it just the seller that may religiously stick with these deadlines?

I am just wondering if it matters if things are delayed at the last minute/days due to this coronavirus madness. How likely will it be if I have not exchanged by the date set that the seller will go 'OH NO! - you have failed, the sale is falling through, goodbye'....

or will they generally understand and just verbally agree to go over some days or a few weeks.

muz3562

I can't see the seller having a list of people waiting to view and possibly make offers on the property at the minute so if they genuinely do want to sell they would be Ill advised to pull out due to a delay in exchanging contracts . I think everybody understands the current situation and how it's likely to impact moving house . 

I am not far off exchange myself and whilst I did not have a date agreed  I will now be looking to exchange and complete after this 3 week restriction . It puts things on hold for 3 weeks and if the seller pulls out this will be disappointing but good luck to them selling the house for the price we had already agreed on and I was prepared to go through with.  

TF03

It's for solicitors to advise and work with each other however. 
Until you have actually exchanged then the dates are flexible as nothing has been legally agreed. This can be changed as needed until contracts are exchanged. You'd hope that at this time, people would be more understanding. 

Once you have exchanged, the completion date is then legally in place and failure to complete on that date can result in loss of deposit, financial penalties etc. 
Our solicitor tried to put in place some contract riders that meant any penalties would be stayed for 30 days if the delay was due to CV19. The vendors solicitor opposed these amendments. 

This is why a lot of solicitors have advised to exchange and complete on the same day. This does obviously mean that until that date, nothing is legally binding. However, does mean that if there is a delay (i.e. due to a more strict lockdown) then you as a buyer, don't lose any money. 

greatcrested

There is no such thing as a fixed date to Exchange. Up till the time of Exchange itself either side can withdraw, or delay, without penalty since there is no contract in place. Buyers/sellers often discuss/agree a date on which they hope to Exchange, but that's all it is, wishful thinking.

Once Contracts have been Exchanged, there is a legally binding contract (hence the name ' Exchange of Contracts'!), and since the Completion date is part of the contract, that is fixed, whether it is the same day, 3 days later, a week later, or a month later.

If either side then fails to Complete on that date they will be in breach of contract and potentially suffer severe penalties.

Thrugelmir

Has your vendor specified a date that the transaction must be completed by? 

homeless9

Thrugelmir said:

Has your vendor specified a date that the transaction must be completed by? 

Exchange of contracts date is: 6th April

Completion date: 31st April.

hazyjo

homeless9 said:

Thrugelmir said:

Has your vendor specified a date that the transaction must be completed by? 

Exchange of contracts date is: 6th April

Completion date: 31st April.

Anyone would be mad to have such a long gap between exchange and completion at the current time. Try to push for same day if at all possible. Avoid Fridays.

Thrugelmir

That's a long window. Something your solicitor may advise against in the current crisis. You'll be lucky to exchange on the 31st April. Is that a typo? 

greatcrested

Thrugelmir said:

That's a long window. Something your solicitor may advise against in the current crisis. You'll be lucky to exchange on the 31st April. Is that a typo? 

OP's vendor wants to Complete on 31st April. So two typos!

greatcrested

homeless9 said:

Thrugelmir said:

Has your vendor specified a date that the transaction must be completed by? 

Exchange of contracts date is: 6th April

Completion date: 31st April.

6th April is just a hoped for date. You and vendor may or may not achieve it.

31st (30th?) April is mad in the current situation!

homeless9

greatcrested said:

homeless9 said:

Thrugelmir said:

Has your vendor specified a date that the transaction must be completed by? 

Exchange of contracts date is: 6th April

Completion date: 31st April.

6th April is just a hoped for date. You and vendor may or may not achieve it.

31st (30th?) April is mad in the current situation!

Those are the dates written onto the reservation form before all this corona madness happened.

The Solicitor has said that they are aiming for exchange of contracts and completion on the same day.

I am unsure of exactly whether I can continue with the purchase or not....

-There is some rule stating that if you have exchanged you can continue. I have not exchanged.

-There is some rule stating that if you are moving into a occupied house, ie. there is a chain of people that need to move - then you should hold off. If you are moving into an empty home then that is ok. (the home I am buying is empty).

-There is a rule stating you should try to hold off unless you can't agree to.


I am not sure if it's actually better off for me to pause the sale and see what happens with the economy/house prices and maybe offer less for the property when everything opens up again after this devastation.

Or

Just go ahead with the purchase and get in my own home. On a health and safety basis it is better for me to move. I am moving into an empty home (new build), I do not need a removals company as I can just move my things with my car. I am a key worker so I am still going out to work with other colleagues and bumping into customers. I live in a HMO with other tenants. Therefore I am a risk to them and they are a risk to me. I'd be safer and they'd be safer if I was in my own home on my own. So it's safer to move. It just means that I need to get hold of the keys in a safe manner. Surely a few keys could just be sent in the post if necessary. Or the seller just leaves them under doormat at a designated time. 5 minutes before I arrive and drives off when he sees me take them and enter the house. Done.