Contract exchanged - safe to buy interior?

Mlasso

Hello,

First time buyer here

Me and my wife "bought" our first home a few days ago. The reason that I am using "" is that we exchaged contracts and paid 10% deposit, however completion is in roughly 40 days.

I do not have experience with exchanging contracts, but I heard from my agent that this is considered as done deal and that during his career he never had a case where seller stopped the completion. 

Based on this, I would like to buy interior that fits our new home (I took some measures) since waiting for furniture is taking weeks. I see this as opportunity to get interior faster when we move in, so I would like to buy it now. However, I am still afraid that something on seller side can go wrong. I am aware that this is mostly unreasonable fear, but I did see on internet that in case seller pulls out he is liable for my costs (whereas if I stop completion I lose all deposit), so it seems that he is not really under huge stress to complete (yes, he would lose a few grand, but if he can sell home for more than that he might decide to do so).

Can someone please clarify then:

1. What does it mean that exchange is legally binding?

2. Is it really possible that agent never had a case of seller pulling out after exchange (obviously I don't mean can you claim for this agent specifically, but is it really that rare)?

3. Is there anything (other than financial loss, much lower than mine) that is preventing seller from deciding not to complete? For example, can I take him to court and say "there is no reason not to complete when I am paying you" so he has to complete?

4. All this said and done, would you order furniture if you were me (assuming no refunds allowed as some is custom measured and made)?

Thanks!

user1977

Not really answering your question, but who do you mean by "my agent"? If you mean the estate agent, they're the seller's agent, not yours. You should be getting advice (particularly about the contract) from your solicitor, not estate agents. And if you have already exchanged, it's a bit late to be asking what it means!

Slithery

Mlasso said:

2. Is it really possible that agent never had a case of seller pulling out after exchange (obviously I don't mean can you claim for this agent specifically, but is it really that rare)?

Most conveyencers go through their entire career without ever coming across a sale that fails to complete after contracts have been exchanged so yes, it's very possible.

Is this a new build where the completion date wasn't agreed on exchange? If so then your original question would likely have a different answer....

Mlasso

Thanks for responses!

@user1977 you are correct, it is technically seller's agent (paid by seller to sell the property). I do have my solicitor who went through the deal.

@Slithery it is not a new home, it is owned by private individual (seller in this case) and has tenant inside (who is renting). I do have exact completion date which is 4 days after tenant moves out (he is under notice now, I just don't want to put exact dates). Completion date was mutually agreed before exchange. Tenant should clean the property as this is part of his tenancy agreement and then we (my wife and I) will get the keys and move in.

With this additional info, what would be the answer to my 1st and 3rd question?

Thanks!

hazyjo

You exchanged when the tenant is still living in the house?

Was your solicitor aware? Did they advise you to wait until they'd left?

You do realise the tenant doesn't LEGALLY have to leave? Quite risky to exchange before they've left.

Tiglet2

Mlasso said:

Thanks for responses!

@user1977 you are correct, it is technically seller's agent (paid by seller to sell the property). I do have my solicitor who went through the deal.

@Slithery it is not a new home, it is owned by private individual (seller in this case) and has tenant inside (who is renting). I do have exact completion date which is 4 days after tenant moves out (he is under notice now, I just don't want to put exact dates). Completion date was mutually agreed before exchange. Tenant should clean the property as this is part of his tenancy agreement and then we (my wife and I) will get the keys and move in.

With this additional info, what would be the answer to my 1st and 3rd question?

Thanks!

How did your solicitor/you exchange without vacant possession?

Mlasso

@Tiglet2 I don't know, I am aware that notice to tenant has been served 3 weeks before exchange and tenant has 2 months notice, so there are 5 weeks (roughly) until completion. 

peter3hg

Have you actually got a definite date? That would be highly unusual (and negligent) with a tenant in situ.

The more usual situation would be that completion is x days after notice is given by the seller that the tenant has vacated the property, with a long stop date in case the process drags out.
There might be an expected completion date in this situation but it wouldn't be binding 

Mlasso

P.S. vacant property is conditional for completion, I saw that in contract.

Mlasso

@peter3hg we were typing at the same time. Yes, I do have exact completion date, tenant leaving is on 4th of June and completion is on 8th of June. 

hazyjo

You hope the tenant is leaving. The fact they've been served notice does not mean they have to leave. Could take over a year to evict.