Contract clause to reduce purchase price by stamp duty if sellers delay completion?

AnotherJoe

IANAL but I don't see why failure to complete on the date agree wouldn't lead to damages including SDLT. That would be a genuine cost against you for which they would be liable. 

And I don't see why they would exchange and then not go ahead with completion knowing the hefty costs and lawsuit that would likely ensue if they didn't proceed on the agreed completion  date, plus they would have to get out anyway eventually . 

Someone else suggested a exchange next week and a completion  before end March, eg 3 to 4 weeks, which gives the sellers time to find somewhere even if not their end rental, why not do that ?

Dogdog

AnotherJoe said:

IANAL but I don't see why failure to complete on the date agree wouldn't lead to damages including SDLT. That would be a genuine cost against you for which they would be liable. 

And I don't see why they would exchange and then not go ahead with completion knowing the hefty costs and lawsuit that would likely ensue if they didn't proceed on the agreed completion  date, plus they would have to get out anyway eventually . 

Someone else suggested a exchange next week and a completion  before end March, eg 3 to 4 weeks, which gives the sellers time to find somewhere even if not their end rental, why not do that ?

Thanks for all the replies.
On the above - yes, this would be fine.....as long as there is still SOME sort of safeguard for us should they ultimately not complete by end of March.  My solicitors have suggested to theirs 2 options:
1 - exchange asap, completion 30th March - with a clause stating that if they delay completion beyond 31st March then purchase price automatically reduces by amount of stamp duty that becomes payable. 
2 - exchange asap, complete 19th March.  If they ultimately don't complete by 31st March then due to the 10 day rule in standard conditions (completion still not happened by 10 days beyond agreed date) then buyer can withdraw without penalty (loss of 10% of purchase price paid at exchange).  
They've been informed that, as I've said all along since sale initially agreed 6 months ago, that I cannot and will not be paying stamp duty if it becomes payable - and so if option 2 occurs, I'll withdraw my offer and immediately resubmit at it's current level minus stamp duty payable.
Yes this means they could ultimately relist the property for sale.  I'd suggest this is very unlikely given that I'm already paying them a figure well above what our independent survey valued the property at - and that it needs thousands spending on it immediately due to multiple issues, and has additional elements which are clear concerns and also put off buyers including multiple instances lacking building regs certifications.
It's far from a "ready to move in to" property, and needs a buyer prepared and willing to complete - and then not move in for some time whilst various work is undertaken, at a significant cost.
Given all this, and that I've waited 6 months whilst the process drags on, most of which with me having moved to rented accom  - having sold my property and completed in the same kind of "no chain either side" scenario in 12 weeks! - I hardly think I'm now being unreasonable now in demanding an assurance in the manner that I am.

billy2shots

In your OP you say that delays are due to hold ups with their solicitor and yours. 

You also say you have renegotiated a lower offer. Now the contract has to be amended. 

Are you not as responsible for slowing the process down as much as the vendor?

Irishpearce26

Maybe hold off as there are many reports that the SDLT holiday is being extended to June.

unforeseen

They would be mad to agree to your condition as part of the exchange. I don't understand why you even think that you could even impose that condition.
They just need to procrastinate until you give up and pull out. You have probably more to lose than them. 
The benefit in getting rid of a buyer who makes unreasonable, and quite frankly, ludicrous demands

Dogdog

Irishpearce26 said:

Maybe hold off as there are many reports that the SDLT holiday is being extended to June.

Sigh.  Yes there are.  Appears fairly strong suggestion this will now happen.   Which means fairly inevitably that the sellers will change their minds and delay exchanging again - and only want to exchange and complete when they've found their "perfect rental"....whilst I have to wait and keep paying rent and hope I don't end up here again in June if they still haven't found it!

If extension does happen and we still haven't exchanged, I'll probably give them until mid March to exchange and until the end of April to complete or I'm pulling out.  Flexibility should work both ways in a house sale.  I've been renting since end November having sold my house and completed quickly to facilitate as easy a transaction with this as possible.....and it seems they just want me to wait and wait whilst they don't compromise at all.

Dogdog

unforeseen said:

They would be mad to agree to your condition as part of the exchange. I don't understand why you even think that you could even impose that condition.
They just need to procrastinate until you give up and pull out. You have probably more to lose than them. 
The benefit in getting rid of a buyer who makes unreasonable, and quite frankly, ludicrous demands

I don't understand what you don't understand.
Have you read the thread?
They are getting a price well above what a surveyor has valued the property at.  It additionally needs thousands spending on it - with multiple safety and building regs contraventions.  To get this work done (which the vast majority of buyers will be clear they need to do before moving in - rewire, plastering, structural work, etc)  means a buyer won't be moving in for weeks or more after completion.
They've had a sale agreed for 6 months.  They've known from the start I was pushing for earliest possible completion and said this was fine.  They've known from the start that I stated I wouldn't be prepared to pay additional stamp duty if this dragged out beyond end March and this was fine.  There was/is no chain.  They simply needed to pack the house up, and find somewhere to rent - as was always their intention.

Please clarify why my demands are "unreasonable, and quite frankly, ludicrous" especially in light of me having been paying rent and having my lift on hold since end of November whilst they dither around for 6 months - despite at the outset having no issue with everything I've said above???!

unforeseen

There is obviously something about this house that makes it imperative that you have it. Paying over the odds, lots of work needed? 
Sellers probably see your desperation to have this house and have decided not bend to your pressure.
But, as you have pointed out, some of the delays are caused by your solicitor as well.
They will agree a completion date that suits them. If you don't like it then walk. 

Irishpearce26

Dogdog said:

Irishpearce26 said:

Maybe hold off as there are many reports that the SDLT holiday is being extended to June.

Sigh.  Yes there are.  Appears fairly strong suggestion this will now happen.   Which means fairly inevitably that the sellers will change their minds and delay exchanging again - and only want to exchange and complete when they've found their "perfect rental"....whilst I have to wait and keep paying rent and hope I don't end up here again in June if they still haven't found it!

If extension does happen and we still haven't exchanged, I'll probably give them until mid March to exchange and until the end of April to complete or I'm pulling out.  Flexibility should work both ways in a house sale.  I've been renting since end November having sold my house and completed quickly to facilitate as easy a transaction with this as possible.....and it seems they just want me to wait and wait whilst they don't compromise at all.

You could still push for exchange 2-3 weeks before the end of March as they initially agreed and see if that is enough time for them with a long stop completion date of 2 weeks after. Effectively 4 weeks after exchange, if they miss that deadline you get compensated and hopefully if SDLT holiday is extended it wont be too much of an impact. Maybe see if you can tie in 1 months rent as compensation rule for the long stop?

Dogdog

Irishpearce26 said:

Dogdog said:

Irishpearce26 said:

Maybe hold off as there are many reports that the SDLT holiday is being extended to June.

Sigh.  Yes there are.  Appears fairly strong suggestion this will now happen.   Which means fairly inevitably that the sellers will change their minds and delay exchanging again - and only want to exchange and complete when they've found their "perfect rental"....whilst I have to wait and keep paying rent and hope I don't end up here again in June if they still haven't found it!

If extension does happen and we still haven't exchanged, I'll probably give them until mid March to exchange and until the end of April to complete or I'm pulling out.  Flexibility should work both ways in a house sale.  I've been renting since end November having sold my house and completed quickly to facilitate as easy a transaction with this as possible.....and it seems they just want me to wait and wait whilst they don't compromise at all.

You could still push for exchange 2-3 weeks before the end of March as they initially agreed and see if that is enough time for them with a long stop completion date of 2 weeks after. Effectively 4 weeks after exchange, if they miss that deadline you get compensated and hopefully if SDLT holiday is extended it wont be too much of an impact. Maybe see if you can tie in 1 months rent as compensation rule for the long stop?

This seems reasonable. Or something in this sphere regarding further extending completion.