Exchange and Completion on the same day

user1977

J_Smotthies2021 said:

Lets assume that I am in the middle of the chain, and I soled my property and my solicitor got all the monies. However, my seller suddenly changed his mind and wants to send my deposit back to me. So, I already sold but did not buy, right?

What makes you think the contracts in the chain won't all have been exchanged simultaneously? So your seller won't be able to "change their mind" (at least, not without being in breach of contract and liable for your costs).

MWT

J_Smotthies2021 said:

it seems taht my seller is behaving again so weird and want to be completely risk free in a chain - I am not sure how this can technically happen? Someone in the middle of the chain, there is always a risk of completing the sale but failing to buy right ?

You need to keep in mind that exchange and complete on the same day makes sense for you because you don't want to risk being tied into the purchase if something pushes it beyond the end of the month, your seller on the other-hand wants you locked in and as others have said, that is what happens once you exchange.

Maybe talk to your solicitor and see if you can make the contract subject to completion on or before 30th June, that way you get the ability to walk away if the chain can't complete by your drop-dead date, and your seller gets a little more comfort, but ultimately if your seller doesn't think the chain is going to complete in-time then this deal isn't going to work for you anyway if you are serious about having to pull out after the end of the month...

J_Smotthies2021

just out of interest. Lets assume that me (Person A - at the bottom of the chain) buying from Person B for 500, and Person B is buying from Person C who is at the top of the chain for 300. Is it possible for me to pay to Person C directly 400, and rest 100 to Person B. Is this possible ?

why I was thinking as per above is that someone in another forum suggested that and saying that he has done it. By doing this, we are actually exchanging and completing at the same time, but also resolving the risk of the middle man (PErson being homeless is resolved. Does above look like reasonable?

J_Smotthies2021

just to correct, I meant paying Person C 300, and rest to Person B.

MWT

You still seem to be trying to solve the wrong problem, and one that isn't yours to solve anyway...

The risk isn't that someone in the middle ends up homeless, as once you exchange you are all committed to the sale and nobody on the chain completes until everyone is ready to complete.

The risk for the chain in a same-day exchange and complete is that nobody is committed to the sale until the day of completion but everyone has to be ready to move so will have incurred costs that they cannot cancel at short notice if exchange and completion doesn't happen on schedule.

Your risk is minimal as the FTB as you will usually have time to arrange your move after the completion date as you are not selling anything.

This still comes back to your stated intent not to proceed with the purchase if it cannot be completed by the end of this month, is this still the case?

J_Smotthies2021

yes, our mortgage offer ends on 30th of June so we do not have a mortgage offer on 1st of July. regardless of mortgage offer, we do not want to pay the extra SDLT anyway.

[Deleted User]

so if you dont complete by 30th June then you are never buying a house as stamp duty is payable?  Or are you waiting for another holiday? 

J_Smotthies2021

if I do not complete by 30th of June, we are converting our loft and staying in.

J_Smotthies2021

So, it seems that my only option is to exchange and complete simultaneously. However, someone today even warned me that there might be some tricks in that process as well. I might be too pessimistic but still wants to explore what I learnt today.
In a chain, all intend to exchange and complete on the same day, the bottom of the chain can give the contract to seller's solicitor - one level up. and then s/he can keep the contract and say that he is not ready at the end of the day and ask for extra 10 days and then we may end up in July. Does abvoe scenario likely to happen ?

[Deleted User]

No one would bother trying to exchange and complete on the same day unless all the solicitors had agreed they were ready, willing, and able to do so.