Can’t agree on completion date

BarelySentientAI

angel3130 said:

No they didn’t tell me that but that’s why I’m saying I want to sign contracts then say 4 weeks from that date. Maybe I’m doing it the wrong way I don’t know 

That's a difficult way to do it - because the date of completion is constantly moving.  Most people want to know what day they can have the keys.

Just pick a date.  People like Fridays for some reason (although I think that's the worst day to do it), so what about 2 August?  If they agree to it, you can exchange tomorrow.  That counts as ASAP and nothing can realistically fall through after that.  Plenty of time to get into a rental.

saajan_12

I think there's some basic confusion. 
Exchange = sign contracts = when the transaction is binding and the completion date is agreed (usually)
Completion = when money moves and you hand over the property keys. 

Sounds like you're proposing a 4 week gap between exchange and completion. Then straight after exchange, you  have 4 weeks to look for a rental, sign the contract, pay the deposit and move in. This is based on the agent's recommendation. 
Buyer wants that gap to be 3 weeks. 
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Please correct if any of the above is incorrect. My 2 cents would be that the 4 weeks suggestion is just that. There's nothing fixed to say it always takes 4 weeks to get and move into a rental. What if it takes 5 weeks.. you'll still have to move into temp accommodation. So 3 weeks is doable, maybe negotiate to 3.5 weeks. The upheaval of 2 moves and storing belongings for a few days will probably be less than havign to start again if you just can't agree anything. 

EssexHebridean

You can sign the contract whenever you like - until the point that your solicitor exchanges contracts with the other side, which is a formal process, it will commit you to nothing, although it is sometimes used as a sign of good faith - "I am holding a signed contract for my clients" - or in other words, yes, my clients are ready to move forwards on this, let's get cracking. 

To exchange contracts, there has to be a completion date - part of the process is literally one solicitor confirming to the other that - for example - "we are exchanging contacts with completion for 9th August". Contracts in a standard transaction cannot be exchanged without that date being agreed between the chain first. 

I would ask your solicitor to speak to your buyer's solicitor and ask them to explain to their clients that because you are going into rented, you do need the time to ensure that you can actually get a rental and be ready to move in that timescale. That you understand that they are really keen to get in, but there isn't anything you can do on that without risking leaving yourselves homeless. They are likely to already have had a benefit of time due to you being the end of the chain, again, something they need to take into account. Be very clear - that you are happy to exchange contacts (for example) on Monday, with completion set for 4 Monday's after (or whatever your day of choice might be) The longer it takes to agree something, the further down the line it will be before your buyers get their keys, so they really have little to lose by agreeing to your (needed) 4 weeks.

As already said, yes there is a risk they could walk away if you stick to your guns, but if they do that, then they would have done it anyway, almost certainly. 

angel3130

saajan_12 said:

I think there's some basic confusion. 
Exchange = sign contracts = when the transaction is binding and the completion date is agreed (usually)
Completion = when money moves and you hand over the property keys. 

Sounds like you're proposing a 4 week gap between exchange and completion. Then straight after exchange, you  have 4 weeks to look for a rental, sign the contract, pay the deposit and move in. This is based on the agent's recommendation. 
Buyer wants that gap to be 3 weeks. 
--------
Please correct if any of the above is incorrect. My 2 cents would be that the 4 weeks suggestion is just that. There's nothing fixed to say it always takes 4 weeks to get and move into a rental. What if it takes 5 weeks.. you'll still have to move into temp accommodation. So 3 weeks is doable, maybe negotiate to 3.5 weeks. The upheaval of 2 moves and storing belongings for a few days will probably be less than havign to start again if you just can't agree anything. 

That’s correct about me however the buyer is saying they want to move in on the 1st so 3 weeks tomorrow 

UnderOffer

Do you think you’ll realistically find a rental and be able to move in the 4 weeks? What will you do if nothing is available, I guess you can try AirBnB to give you a buffer. In which case, 3 weeks will probably be ok too. 

angel3130

I’m on rightmove every day so I know what’s in the area. I just don’t know how long it takes for it all to go through and my credit score isn’t good so that will go against me. 

HouseMartin567

You have risk at both ends here. You insist on 4 weeks between exchange and completion and the buyer could pull out, or you agree to 3 weeks and then don’t find a rental in time. I guess you need to decide which of these is the worst situation for you and work from there.

Myci85

I would recommend going ahead with a rental ASAP regardless. Many agents advertise before current tenants have vacated, to minimise vacant period, so there is no guarantee even if the application etc was sorted in 4 weeks that you would be ready to move in. 
Equally, the maximum holding deposit agents can now charge for rentals is 1 week's rent, so in the grand scheme of things, that's unlikely to be a huge amount you risk losing if it did all fall through. And if you are worried about your credit score and passing the credit checks, even more reason to get that process started ASAP so you know if you can even be accepted for a rental property, as if you can't, and you've already exchanged contracts, you'll be on a very tight timescale to come up with a plan B.

Titus_Wadd

If your estate agent is also a letting agent it might motivate him to find you a place to rent if it keeps the chain going.

Exodi

I still think this issue is being overblown.

EssexHebridean said:

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That you understand that they are really keen to get in, but there isn't anything you can do on that without risking leaving yourselves homeless.
...

I think unless the OP doesn't have a single penny to their name except this house (and even in that case I'd consider a loan if I was set to receive tens, if not hundreds, of thousands of pounds in equity imminently), then OP probably wouldn't leave themselves homeless, but begrudgingly staying in a cheap B&B and potentially paying storage costs.

It is absolutely in the OP's power to agree completion within 3 weeks. The OP could agree completion the day after exchange if they really wanted, it just depends on how adverse to paying for short term accommodation the OP is, this is the basis of this negotiation. Threats about homelessness are pretty disingenuous and would be received as such.

But unfortunately the OP can't even enquire into any rentals yet because they've not committed to a date.

angel3130 said:

I’m on rightmove every day so I know what’s in the area. I just don’t know how long it takes for it all to go through and my credit score isn’t good so that will go against me. 

Depends on the particular property and availability. Some properties are relisted when a tenant has served notice (but may not have necessarily left just yet) meaning the property isn't available to move into for a few weeks, some properties are vacant and estate agent is keen to get someone in as soon as possible.

You would generally ask about availability when you view the property, the last rental I sorted for my parents (due to a house sale before finding the house they wanted) they were able to move in within about a week of viewing (but we were hot on getting back ID, signed contracts, etc).