Missing Exchange of Contracts deadline

homeless9

Hi People,

First time buyer here....

The deadline for me to exchange contracts is on Monday. There is still some things to do such as sign and send back some documents, pay the deposit....so this deadline will be missed. I have googled about missing this deadline and it seems like it's common and nothing to worry about....could you kind people confirm this. I just wondered if I need to message my solicitor and get them to contact the seller's solicitor to just reassure them that I am happy to proceed in these uncertain times but there may be a week or 2 delay before we exchange and complete, which we have agreed will happen on the same day. Or will my solicitor likely keep the seller's solicitor informed so I don't need to encourage them to? Maybe the seller's solicitor and the seller/developer won't see the exchange of contracts deadline miss as an issue and won't even need to have an update?

The completion deadline is at the end of April, is this a more important deadline than exchange of contracts? As I say, now we are going to exchange and complete on the same day, likely before the completion deadline.

I ideally need some more time to mull things over too with the mayhem that is going on with this virus. Ideally I'd like to see the numbers of dying / number of new cases in the UK and Europe start to drop off within the next 2 weeks and maybe hear of this treatment they are trialing working to give me some faith that things are getting better, right now they are only getting worse.

In this sort of circumstance is it ok to say to the seller and their solicitor that I need some extra weeks to think things over to come to a decision on whether to go through with the purchase or not? I am buying a new build (already built), so no chains and the developer would highly likely be keen to sell at the price I have arranged seeing as the world is melting.... or maybe I just don't say anything and just drag the sale out until the completion deadline at the end of the month?

Slithery

Is this a new build?

If not then where is this 'deadline' coming from? Contracts are only exchanged when everything is ready and the completion date is arranged at this time.

homeless9

Slithery said:

Is this a new build?

If not then where is this 'deadline' coming from? Contracts are only exchanged when everything is ready and the completion date is arranged at this time.

yes, a new build that's already been built and ready to move into.

The reservation form when I reserved the property states 'PROPOSED' exchange of contracts 6th April, 'PROPOSED' Completion 30th April.

So actually it doesn't say the word 'Deadline', they are just proposed dates. So in that case they don't matter too much? I can just drag the purchase out for a bit to give me more thinking time?

davidmcn

They wouldn't matter even if they said "deadline". What realistically is going to happen if things are delayed? As discussed on your previous thread(s), the developers probably don't have a queue of alternative buyers.

Thrugelmir

Proposed = a plan/suggestion for consideration by others

homeless9

ok, cheers guys. I will drag it out for a few weeks. I would like to see Europe going through a recovery over the next few weeks.

Jobless claims in USA 6.6million announced today. I know nothing about economics and how that affects the rest of the world, specifically the UK, but all news at the moment is bad news.

lisyloo

I don’t think you are going to see a recovery in a few weeks. Europe, us etc. Haven’t peaked yet so things will be getting worse over the next few weeks. I don’t think you’re going to be able to get any reassurance by waiting a short time.

its generally an extremely bad idea to exchange and complete on the same day but even more so now (as key players could be off il). If the hold up is at your end you could be liable for the extra removal costs and living costs of everyone in the chain if they need temp accommodation as they’ve moved out.
there are simply too many things that could go wrong and especially now when (for example) one of the solicitors might be ill on the day.

pinkteapot

You sound a bit confused about how the process works. Key points, just in case: 

1. Neither buyer nor seller is legally obliged to go through the transaction until exchange has happened. Either can pull out for no reason, and there's no recourse for the other side.
2. Because of that, one party may set a 'deadline' for exchange but nothing happens if it's missed. Worst that happens if the buyer misses it is the seller re-markets the house (unlikely right now).
3. Just before contracts are exchanged, usually a day or so before, all parties in the chain discuss and agree a completion date, and tell their solicitor they're happy to exchange. Solicitors write the agreed completion date onto the pre-signed contracts at the last moment, and exchange them.
   (NOTE: In the case of a new-build that's still under construction, contracts may be exchanged without a fixed completion date - different process there).
4. At the moment contracts are exchanged, it all becomes legally binding and everyone MUST complete on the completion date, or face significant financial penalties.

Until exchange, no date for exchange of completion is set in stone. After exchange, the completion date is fixed.

AdrianC

homeless9 said:

...but all news at the moment is bad news.

No, not at all.

China's releasing people from lockdown, after barely over 1,000 new cases of Covid in the last month, active cases down to 2,000, and only about 100 deaths in three weeks. That's very good news which has at least as much relevance to your house purchase as US unemployment figures.

hazyjo

AdrianC said:

homeless9 said:

...but all news at the moment is bad news.

No, not at all.

China's releasing people from lockdown, after barely over 1,000 new cases of Covid in the last month, active cases down to 2,000, and only about 100 deaths in three weeks. That's very good news which has at least as much relevance to your house purchase as US unemployment figures.

I wouldn't believe a word about China's figures right now! Censored/sanitised news.

steampowered

This is perfectly normal.

However, it would be common courtesy to make sure that your solicitor is aware of your expectations on timing. Your solicitor will know that they haven't received your deposit but won't know much else unless you tell them.