Exchanged contracts

Hyds1_12

I'm well aware what exchanging contracts means so really don't appreciate the sarcastic comments insinuating I should have 'read it before I signed it' I clearly did that. Personal circumstances have changed and things in family life have happened to which I wasn't disclosing on a forum, I was merely seeking advice. Thank you to those who genuinely responded with helpful information. 

Hyds1_12

mrschaucer said:

Hyds1_12 said:

Hi, 
I exchanged contracts on a new build on Tuesday 18th August. My question is, if I were to pull out at this point what would happen? I haven't yet paid the deposit, this is due to follow on Monday 24th August once my sale completes.
Thanks in advance.. 

Hesitate to ask - are you sure you've exchanged and not just signed the contract ready to exchange on 24th?

Definitely exchanged on both the sale and the purchase. Deposit is to follow as I'm using the funds from the sale to pay for the deposit on the purchase. 

iampetesmith

If you've definitely exchanged, there's no going back no matter what personal circumstances change.

If you pulled put now, you'd lose at least the deposit and cause major issues for anyone else in the chain.

annetheman

mrschaucer said:

Hyds1_12 said:

Hi, 
I exchanged contracts on a new build on Tuesday 18th August. My question is, if I were to pull out at this point what would happen? I haven't yet paid the deposit, this is due to follow on Monday 24th August once my sale completes.
Thanks in advance.. 

Hesitate to ask - are you sure you've exchanged and not just signed the contract ready to exchange on 24th?

This ^ can someone clarify?

I thought you only "exchange" once both parties have signed the contract AND deposit has been deposit - maybe if the other party is only signing on the 24th, upon receipt of deposit, you might have a chance to withdraw without paying additional fees?

I'd speak to your solicitor pronto - this is a life-changing decision, potentially for the much worse than just completing despite familial circumstances and selling ASAP.

greatcrested

Hyds1_12 said:

mrschaucer said:

Hyds1_12 said:

Hi, 
I exchanged contracts on a new build on Tuesday 18th August. My question is, if I were to pull out at this point what would happen? I haven't yet paid the deposit, this is due to follow on Monday 24th August once my sale completes.
Thanks in advance.. 

Hesitate to ask - are you sure you've exchanged and not just signed the contract ready to exchange on 24th?

Definitely exchanged on both the sale and the purchase. Deposit is to follow as I'm using the funds from the sale to pay for the deposit on the purchase. 

Highly unusual.

You (your solicitor) would receive the deposit on your sale on the day of Exchange, not 4-5 days later.

And you (your solicitor) would pay the deposit on your purchase on the day of Exchange, not 4-5 days later.

Davesnave

Hyds1_12 said:

I'm well aware what exchanging contracts means so really don't appreciate the sarcastic comments insinuating I should have 'read it before I signed it' I clearly did that. Personal circumstances have changed and things in family life have happened to which I wasn't disclosing on a forum, I was merely seeking advice. Thank you to those who genuinely responded with helpful information. 

No one needs to know the personal circumstances surrounding this, but it would have helped your post to mention a radical change in your situation. As it is, people are still puzzled by your assertions, which are unusual in nature and lead automatically to questions regarding their credibility. Sorry if this offends you; it's just a statement of how things look on this side of the forum.

Thrugelmir

Speak to your solicitor tomorrow.......

bucksbloke

Any solicitor would strongly advise you to continue with the purchase. 

Kyresa

greatcrested said:

Hyds1_12 said:

mrschaucer said:

Hyds1_12 said:

Hi, 
I exchanged contracts on a new build on Tuesday 18th August. My question is, if I were to pull out at this point what would happen? I haven't yet paid the deposit, this is due to follow on Monday 24th August once my sale completes.
Thanks in advance.. 

Hesitate to ask - are you sure you've exchanged and not just signed the contract ready to exchange on 24th?

Definitely exchanged on both the sale and the purchase. Deposit is to follow as I'm using the funds from the sale to pay for the deposit on the purchase. 

Highly unusual.

You (your solicitor) would receive the deposit on your sale on the day of Exchange, not 4-5 days later.

And you (your solicitor) would pay the deposit on your purchase on the day of Exchange, not 4-5 days later.

Not quite... we have this wonderful mechanism we use called "hold to order".  This means the bottom rung of the chain's solicitors keeps the deposit in their bank account, but it is no longer the property of the buyer and is simply forwarded on on completion.  This saves funds being moved up the chain when there's not a long period of time between exchange and completion. 

Developers however usually like their funds quicker.  So it's as the OP said.. the first rung in the chain will send to the next, .. who then send to the next etc...  It can take a few days (10 or so at least) to move it all around in the system and the developer will be fully aware of this.  .  As long as the bottom of the chain has their deposit ready to go, the rest of the chain relies on it moving up:D   

AskAsk

OP - so are you still looking to default?