COVID between exchange and completion

Ramouth

Thrugelmir said:

Ramouth said:

sammyjammy said:

Sounds a bit convenient to me but just sit tight and wait it out, nothing else you can do if you won't be financially out of pocket.

I do feel for the person with COVID at the top of the chain but wonder why our seller shouldn’t have to go into temporary accommodation to meet the contacted completion date?

That's a major inconvenience for the sake of a week. Would you be so accommodating if you were in their shoes. I suspect not. 

Possibly.  We moved into rented when our first purchase fell trough so that our buyers could benefit from the first stamp duty holiday.

We won’t be forcing anyone to move though - just venting my frustration!

Ramouth

sammyjammy said:

Ramouth said:

sammyjammy said:

Sounds a bit convenient to me but just sit tight and wait it out, nothing else you can do if you won't be financially out of pocket.

What do you mean by it sounds a bit convenient?  It is extremely inconvenient for us!

You are right though, the only thing we can do is sit and wait.

What is the point of exchange of contracts if completion date doesn’t mean anything?

I do feel for the person with COVID at the top of the chain but wonder why our seller shouldn’t have to go into temporary accommodation to meet the contacted completion date?

I meant convenient for them not you!  I'm not saying its not true but is a good get out if there is some unexpected delay their end.  Hope things go ok from here on in.

Sam

Thank you

AdrianC

Ramouth said:

What is the point of exchange of contracts if completion date doesn’t mean anything?

It does.

I do feel for the person with COVID at the top of the chain but wonder why our seller shouldn’t have to go into temporary accommodation to meet the contacted completion date?

There are basic legal concepts in play here - mitigation of losses, and proportionality.

Is it proportionate for somebody else to move twice, incurring sizable cost and disruption, in order that you get a few extra days of doubled-up properties so you can take your time doing a bit of DIY before moving?

Which mitigates costs up and down the chain?

Ramouth

AdrianC said:

Ramouth said:

What is the point of exchange of contracts if completion date doesn’t mean anything?

It does.

I do feel for the person with COVID at the top of the chain but wonder why our seller shouldn’t have to go into temporary accommodation to meet the contacted completion date?

There are basic legal concepts in play here - mitigation of losses, and proportionality.

Is it proportionate for somebody else to move twice, incurring sizable cost and disruption, in order that you get a few extra days of doubled-up properties so you can take your time doing a bit of DIY before moving?

Which mitigates costs up and down the chain?

We won’t actually make them do this.  We are not horrible people.  It’s just feels like yet again we are accommodating everyone else in the process and I am whinging - sorry!

AdrianC

Ramouth said:

AdrianC said:

Ramouth said:

What is the point of exchange of contracts if completion date doesn’t mean anything?

It does.

I do feel for the person with COVID at the top of the chain but wonder why our seller shouldn’t have to go into temporary accommodation to meet the contacted completion date?

There are basic legal concepts in play here - mitigation of losses, and proportionality.

Is it proportionate for somebody else to move twice, incurring sizable cost and disruption, in order that you get a few extra days of doubled-up properties so you can take your time doing a bit of DIY before moving?

Which mitigates costs up and down the chain?

We won’t actually make them do this.  We are not horrible people.  It’s just feels like yet again we are accommodating everyone else in the process and I am whinging - sorry!

At least it's not you that's got covid, eh?

GDB2222

Some contracts have a special Covid clause in, dealing with this situation. Does yours?

Ramouth

wilfred30 said:

I think there could be a danger of the delay dragging on for much longer if the person becomes very unwell and, potentially. hospitalised.

If that happens, the situation the OP currently finds themselves in could be very much worse!

This is an interesting point.  I really hope for the sake of the person with COVID that this is not the case.

But also from a selfish point of view, we need to give notice on our rental on Friday.  If we do this and have still not completed by the end of next month we will have nowhere to live.  Would they still be responsible for our costs?  Or would the fact that we have given notice when we already know this could be an issue change that?

Ramouth

AdrianC said:

Ramouth said:

AdrianC said:

Ramouth said:

What is the point of exchange of contracts if completion date doesn’t mean anything?

It does.

I do feel for the person with COVID at the top of the chain but wonder why our seller shouldn’t have to go into temporary accommodation to meet the contacted completion date?

There are basic legal concepts in play here - mitigation of losses, and proportionality.

Is it proportionate for somebody else to move twice, incurring sizable cost and disruption, in order that you get a few extra days of doubled-up properties so you can take your time doing a bit of DIY before moving?

Which mitigates costs up and down the chain?

We won’t actually make them do this.  We are not horrible people.  It’s just feels like yet again we are accommodating everyone else in the process and I am whinging - sorry!

At least it's not you that's got covid, eh?

Very true!  I’m hoping for their sake it is an asymptotic case.

TBagpuss

Ramouth said:

wilfred30 said:

I think there could be a danger of the delay dragging on for much longer if the person becomes very unwell and, potentially. hospitalised.

If that happens, the situation the OP currently finds themselves in could be very much worse!

This is an interesting point.  I really hope for the sake of the person with COVID that this is not the case.

But also from a selfish point of view, we need to give notice on our rental on Friday.  If we do this and have still not completed by the end of next month we will have nowhere to live.  Would they still be responsible for our costs?  Or would the fact that we have given notice when we already know this could be an issue change that?

Ask your solicitor,. Make the point that if you give notice now, you will be mitigating your losses as you'll be able to move out after the 10 day delay, but if there are further delays you will have additional expenses for hotels and furniture storage.

If   you don't give notice because completion has been delayed and it is uncertain for how long, you will incur another month's rent . 

Ask them whether you will be able to claim back removal cost, if you give notice and this means that you no longer have 10 days or so to move your stuff gradually, and of you'd be able to claim the extra month's rent if you don't give notice, save on the removals, and avoid the risk of hotels and storage.

I think you might well be able to argue that the least worst option, likely to be cheapest, if to delay giving notice, but run it by your solicitor and they may be able to agree it with the seller

ss2020jd

Sorry to hear this has happened after exchange. 

Our buyers failed to complete last week due to a problem with their buyers and they had to cancel their removals one day before incurring costs, not to mention stress and inconvenience for everyone.

As soon as the completion date/time noted in the contract passed there was a breach of contract and their solicitor asked our solicitor to serve notice to complete which makes its way down the chain and I believe then allows interest to be payable under the terms of the contract, and for any losses etc. It gives 10 working days to complete. 

Your solicitor should be explaining and discussing this with you. 

I didn’t want to add further stress to our buyers by serving this at first (we are in rented and had already moved out) but when I saw that they were doing it to their buyer and their solicitor requested ours to do the same, I understood that it was the legal protocol that is followed in ‘rare’ cases like this.

I believe there was some wrangling between them and their buyer for losses I think the solicitors settled and we also received some unexpected compensation interest for the delayed completion. 

So check with your solicitor as to whether there was a COVID clause and then whether if things dragged on what you would be able to claim for.