Exchange and completion on the same day - what happens if it goes wrong?

MrsBrush

No doubt some of you will have seen our saga - we are supposed to be completing on Tuesday 12th, and so far there has been 5 attempts to exchange contracts - every day since last friday. All failed because of our vendors conveyancers being utterly incompetent, and my absolutely blunt, honest and very capable EA thinks that this useless company want to do everything in one go on Tuesday. despite his client's instructions to the contrary, because it is "easier" for them, so they are basically stalling. Our EA is saying that everything can still happen on the 12th, and we know that our solicitor has been brilliant, the funds etc in place for Tuesday, so I am confident in my own team's ability to pull his off.

But after the stress of this week's failed exchanges I have zero confidence that the vendor's bunch of ***** will manage to even get the exchange done on moving day, let along complete - while we are running around, packing our lives and all of our belongings in our 3rd choice of removal company's lorry (because we lost the 1st and 2nd choices because of the failed exchanges) and sitting outside our new house with no keys and no legal right to presume it will be ours because exchange has stalled again! There are 4 parties in the chain, all affected by this utter incompetence. So even though it is so close, I want to tell them all that if we don't exchange contracts by lunchtime today I want to move the date back a few days. 

Question is - given the circumstances outlined above, not to mention the risk to my blood pressure, sanity and wellbeing, how big a risk is it to expect a miracle and get exchange and completion done together? And if it all goes wrong, who would be liable for the additional costs?

Doozergirl

If there is no exchange then everyone is responsible for their own costs.  

If you are not confident in the people in the process, you do not exchange and complete on the same day.  

That is the long and the short of it.  

MovingForwards

It's always a risk selling and buying when looking to exchange and complete on the same day. 

In your position I would have the van loaded, but sat outside my current home just in case it didn't take place. 

Are there other properties you like? If so, consider short-term rental, bunking with friends and family with possessions put into storage, complete on my sale and look for a new place, while seeing if this one does finally go through.

I've not read all your other threads though to get a good idea as to the history of your situation.

MrsBrush

@Doozergirl thank you, that is what I thought.

I will speak to my solicitor and EA today, and make sure we don't take this risk.

eddddy

MrsBrush said:

@Doozergirl thank you, that is what I thought.

I will speak to my solicitor and EA today, and make sure we don't take this risk.

To make it a positive discussion, rather than a negative one, it might be good to put forward a clear (realistic) requirement.

For example, your requirement might be a minimum of 7 days between exchange and completion (whenever exchange happens). So you have 7 days to arrange a removal firm, pack-up your house, book a day off work, etc. It's much less stressful.


If others in the chain object, then it becomes something to negotiate about. But they might also welcome a less stressful approach.

Flugelhorn

I have only done a sim once and there were no chains anywhere, I agree that with chains and packing etc etc and the risk that you might all have to go back and offload the lorries at the original properties I would insist on at least a couple of days I expect the rest  of the chain would feel the same

MrsBrush

eddddy said:

MrsBrush said:

@Doozergirl thank you, that is what I thought.

I will speak to my solicitor and EA today, and make sure we don't take this risk.

To make it a positive discussion, rather than a negative one, it might be good to put forward a clear (realistic) requirement.

For example, your requirement might be a minimum of 7 days between exchange and completion (whenever exchange happens). So you have 7 days to arrange a removal firm, pack-up your house, book a day off work, etc. It's much less stressful.


If others in the chain object, then it becomes something to negotiate about. But they might also welcome a less stressful approach.

To be fair, that is the discussion that had already taken place, and had been agreed by all parties in the chain, the EAs and the conveyancers. The 12th was agreed at the end of September as a workable date, with exchange scheduled to take place on the 1st October. So should have all been fine. 

Same day exchange and completion were never part of the plan, and this was agreed right at the start.

eddddy

MrsBrush said:

To be fair, that is the discussion that had already taken place, and had been agreed by all parties in the chain, the EAs and the conveyancer. The 12th was agreed at the end of September as a workable date, with exchange scheduled to take place on the 1st October. So should have all been fine. 

Same day exchange and completion were never part of the plan, and this was agreed right at the start.

Yep. Although with property transactions, any dates agreed in advance will always be targets rather than 'set in stone', until contracts are exchanged. I suspect everyone in the chain is as frustrated as you are.

Until contracts are exchanged, you probably need to think of things in terms of "It will be good if things happens on those dates, but I also need to plan for if they don't."

babyblade41

I never exchange and complete on the same day I always require at least 7 days and never complete later than a Thursday 

TripleH

It seems like your vendor  have forgotten their conveyancer works for them. They should dictate what happens not the other way round. Assuming everyone is being honest on this.

Worst case I knew of was that my brother spent the day in the pub waiting to complete whilst the kids were at school. The dog knocked the cat carrier over and their cat 'went home' fortunately an ex-neighbour took him in and let my brother know.

doodling

Hi,

It depends if you want to take a risk or whether you want to be a bit firmer at the expense of possibly delaying everything.

One option would be to tell your vendors and get your solicitors to tell your vendors solicitors that exchange and completion will not happen on the same day and that if exchange doesn't happen with at least 2 working days notice before completion (i.e. today!) then completion will need to be put back.  The communication to the vendors EA needs to explain that it was agreed that there would be a gap between the two and you are disappointed that the vendor (or their solicitors) has forgotten that.

Alternatively you could just take a chance, but unfortunately you get to deal with all the misery if it doesn't happen.