COVID Buying and Selling

Tightaz

Hi Team.

I have this morning spoken to my convencyer for an update of things and we given some interesting information.

Was told that most other firms were all in the same boat with COVID-19 restrictions but:-

1. They were only working on completions and cases that were basically ready to exchange and complete same day.

2. They feel that it's only a matter of time before they will have to close down

3. Getting searches etc. done now is not possible.

4. MANY sales have fallen over due to the virus.  Not just at this firm but many other firms.

Not trying to raise any alarm but thought it might be nice information to share.

hazyjo

Just seen this on another long post (https://forums.moneysavingexpert.com/discussion/6118567/will-lockdown-affect-house-move#latest). Obviously it's unchartered waters for everyone. Expect the worst and hope for the best - that's all anyone can say atm. I'd not be trying to move right now, that's all I know

big_vern said:

Due to exchange / complete today. vans packed 11:00am got a phone call from my solicitor to say other sides solitcitors director had decided the move was not within the govt. advice and therefore it will not go ahead. gutted is not the word.
I thinks it's because we hadn't exchanged so there was no exisiting contract, so its against advice/guidance/rule (delete as appropriate depending if its govt. law society, govt advisor - who knows) to move at this stage.
Solicitor was contemptible to stop at this stage after removal men had already been and packed van, (at all 3 points in chain) and had to unpack it, so there was no limitation (of the correctly observed social distance) of exposure in any case beacue they had to unpack the van, just back into the same house. complete back covering, their client was, I know for  fact, crying on the phone to the estate agent beacuse she couldnt move.

Rural_Puppy

Been watching the news etc very carefully.  A really nerve wracking time for everyone.
We are due to settle (Scotland) on 8th April. Missives are concluded (similar to exchange of contracts). There is now an issue at Registers of Scotland with any new Title registrations..... So that may hold us up. In meantime, I am now stressing about the possibility of the buyer's mortgage lender pulling their mortgage offer at the last minute. Anyone know of this happening at such a late stage? If the buyer decides to pull out for any reason after conclusion of missives, does the current emergency situation make any difference? Can we still try and reclaim our losses? (sounds so very mercenary I know, when folk are very ill and dying, but it would be helpful to get some clarity on our position now. If that is indeed possible at the current time)
Stay safe everyone!

davidmcn

Rural_Puppy said:

We are due to settle (Scotland) on 8th April. Missives are concluded (similar to exchange of contracts). There is now an issue at Registers of Scotland with any new Title registrations..... So that may hold us up. In meantime, I am now stressing about the possibility of the buyer's mortgage lender pulling their mortgage offer at the last minute. Anyone know of this happening at such a late stage? If the buyer decides to pull out for any reason after conclusion of missives, does the current emergency situation make any difference? Can we still try and reclaim our losses? (sounds so very mercenary I know, when folk are very ill and dying, but it would be helpful to get some clarity on our position now. If that is indeed possible at the current time)

If that was the only difficulty, then yes the normal provisions in the missives about default by the purchaser would apply. The fact that nobody can register pretty much anything at the moment though is likely to make a difference as it also means you can't discharge your mortgage (assuming you have one), so both parties are in breach.

In any event, as current Law Society of Scotland advice is not to settle any transactions then I doubt anybody will be using the circumstances against each other and it will just be stalemate until normality resumes.

ger1986

'Following further discussions this morning between Registers of Scotland (RoS), UK Finance and the Law Society of Scotland (LSS), a process is now in place that enables transactions to settle where an advance notice is in place.

Solicitors should view the LSS guidance and the list of lenders who have agreed to the proposals.

Most major lenders have already agreed and solicitors are advised to check the list which will be updated as new lenders come on board.'

Does this guidance from Registers of Scotland mean it will be possible to settle? We are due to settle 3rd April. Many thanks

Rural_Puppy

Hard to say what the current situation is, all very fast moving and fluid. 
Saw this on the BBC today: https://www.bbc.co.uk/news/uk-scotland-scotland-business-52071283
RoS has this on their COVID-19 update page:  https://www.ros.gov.uk/coronavirus-covid-19/information-for-home-movers
Settlement for our sale is due on 8th April. However, when I emailed my solicitor yesterday, I was advised as follows:
"We need to register an advance notice which usually happens about a week before. We have not therefore done so, and now cannot do so as the RoS cannot process it.
There is a process in place to allow people to move, but only if they will otherwise suffer "hardship". An example would be someone being made homeless or someone who needs to move into sheltered housing to get care."
My solicitors are still trying to work out what happens if either buyer or seller is in breach of contract as a result of the current situation. As I have a mortgage, that also needs to be discharged before the buyer's lender can lodge their charge. RoS have to do this, and I am not yet clear there is a suitable process in place. so effectively as DavidMcn says above, we will also be in breach of contract as we cannot give a clear title.
My huge worry just now is that the buyer pulls out because their lender has pulled or reduced their mortgage offer......or something awful happens to them. 
Worrying times for all.

Tillypop56

Just wondering if anyone has had a similar experience with a surveyor.  I was able to get the surveyor to go round the potential house I am buying before the lockdown and I received the report Thursday (26 March 20) to be told that "The property market has largely stopped in its tracks.  At this precise moment in time, effectively there is no property market, and therefore providing an accurate valuation of the property is simply not possible" so I am left with a survey report without a valuation on it!  I've written and reminded the surveyor that a valuation was agreed at instruction but he's just "sorry that's it's not possible to place a valuation on the property at the current time"  - Oh, and he added, "Again, please note our offices are closed".  This can't be right surely?

jkasc

I was lining up to exchange and complete last week, but the flat sale collapsed due to the conveyancer refusing to exchange, due to the Govt advice. I closed my HelptoBuy ISA, with Barclays, in February. But now the sale is delayed/off for the foreseeable future, do you think it will be possible to go back to Barclays and reopen their H2B ISA? Trying to contact them is a nightmare, 2hr+ on their help line!

Britvic290216

Buying in Scotland During Covid-19
Missives were signed and date of entry was to be start of April. As this has lapsed are both parties in breach and missives rescinded? 
The buyer would like to pull out of the deal if house prices due to fall. Can they do that since date of entry has lapsed?
Solicitor has not been in touch to arrange new exchange dates so everything in limbo.

Anyone know the legal position in Scotland now? Thanks. 

theartfullodger

Britvic290216 said:

.....Anyone know the legal position in Scotland now? Thanks. 

Found this with something called "Google".  Seems quite a useful wee tool!

https://www.gov.scot/publications/coronavirus-covid-19-guidance-moving-home/

Yes, tricky.  I had a plan to sell a house:  Now empty, ready to market, but pretty much nuffink happening.  But there are bigger fish to fry..

 Slàinte mhath!

tommyedinburgh

We went on the market in Scotland 48 hours before the lockdown. Managed to get two sets of viewers in. 

Particularly gutted because we only went on the bloody market to have a good go at trying to buy a house that came on the week before that we see as a forever home. We hadn’t planned to move for 2.5 years.