Exchanged contracts now lost job

[Deleted User]

I’ve searched the internet high and low and surely I can’t be the only person this is happening to?

we reserved a new build beginning of the year and our mortgage offer received in March. Right before lockdown. I refused to exchange contracts whilst everything was so unsettled. 

After lockdown both Barratt and the solicitor got in touch eager to exchange. I said I still wasn’t sure of it so the solicitor suggested an exchange with a Covid clause incase I lost my job, which also protected Barratt’s for altering completion date. After a lot of mivering, I exchanged with this on a nil deposit. 

Now my situation is possibly changing and I’m at risk of losing my job. I’m at my wits end because i can’t find information on this ‘Covid’ clause anywhere and the solicitor is not replying to my emails (email says he’s away). 

Has anyone exchanged then lost their job due to Coronavirus? I’m worried sick, possibly no job, no house and a lengthy legal bill. Please help 

Thrugelmir

The clause will be written into the purchase contract that the solicitor has drafted and will be holding. 
At least you've not lost a deposit. 

davidmcn

fayetay1 said:

After lockdown both Barratt and the solicitor got in touch eager to exchange. I said I still wasn’t sure of it so the solicitor suggested an exchange with a Covid clause incase I lost my job, which also protected Barratt’s for altering completion date. After a lot of mivering, I exchanged with this on a nil deposit. 

Now my situation is possibly changing and I’m at risk of losing my job. I’m at my wits end because i can’t find information on this ‘Covid’ clause anywhere

Do you mean you don't even have a copy of the contract? There's no standard "Covid clause" so I doubt anybody here can tell you what your contract says. Isn't there anybody else contactable at your solicitor's firm?

princeofpounds

Try not to worry too much - there probably is some protection for you; the lack of a deposit is evidence that such things have been considered; that's normally the main thing that's at risk in a situation like this.

Apart from that, the other large thing that could theoretically be claimed are damages for a drop in the market price of the property whilst held post-exchange. Given you exchanged post-Covid, and here we are only a couple of weeks later, I don't see how anyone could claim there has been any change or a loss, so you don't have to worry about that.

Also, Barratt may want to sell you the house again if your employment situation stabilises, so you may well find that they work with you on this one.

Jumblebumble

fayetay1 said:

I’ve just had an email back saying I won’t lost out if ‘Barratt’s agree to pull the sale’ 
I feel like I’ve been really done over here and that there was no such clause in the first place  so stressed

I would have thought that any losses you may make would be covered by your solicitors indemnity insurance as on the face of it they have exchanged without your agreement 
very careless of them if this is the case

Thrugelmir

fayetay1 said:

I’ve just had an email back saying I won’t lost out if ‘Barratt’s agree to pull the sale’ 
I feel like I’ve been really done over here and that there was no such clause in the first place  so stressed

Rather than speculate have a telephone conversation with your solicitor.  What precisely did your solicitor say in the email? 

bris

Jumblebumble said:

fayetay1 said:

I’ve just had an email back saying I won’t lost out if ‘Barratt’s agree to pull the sale’ 
I feel like I’ve been really done over here and that there was no such clause in the first place  so stressed

I would have thought that any losses you may make would be covered by your solicitors indemnity insurance as on the face of it they have exchanged without your agreement 
very careless of them if this is the case

The op clearly states they agreed to exchange with the covid clause.
I would assume this covid clause covers the OP losing their job due to the covid situation we are currently in.