Covid - Exchange/completion clarification

beebop1

Our solicitor just told us that if it happens then another competion date can be set by mutual agreement... not necessary to have a covid rider in the contract

Mineral1

That's definitely not what we are being told, we are told that if a completion date is set and exchange takes place, if we fail to complete on that date we are in clear breach of contract and would forfeit our entire deposit. Without the covid rider, if you exchange contracts then for example your mortgage offer is withdrawn or you have to self isolate, you put yourself in breach of contract with pretty unthinkable consequences.

Tiglet2

beebop1 said:

Our solicitor just told us that if it happens then another competion date can be set by mutual agreement... not necessary to have a covid rider in the contract

This would be what would happen with a simultaneous exchange/completion, because if something happens, you wouldn't have exchanged and therefore no breach of contract.  

Mineral1 said:

That's definitely not what we are being told, we are told that if a completion date is set and exchange takes place, if we fail to complete on that date we are in clear breach of contract and would forfeit our entire deposit. Without the covid rider, if you exchange contracts then for example your mortgage offer is withdrawn or you have to self isolate, you put yourself in breach of contract with pretty unthinkable consequences.

 

 
If you have exchanged, then yes, it becomes messy with possible costs of removals, overnight stays in hotels, and any other expenses, unless everyone is able to stay in their current properties until a mutually convenient completion date can be agreed.  A Notice to Complete can be issued, giving an additional 10 days to complete.  The defaulting party is at risk of losing their deposit and possibly being sued by others in chain for the loss of their deposits.  Very rare this happens though.