Completion date cancelled due to no signed contract from vender

NikkiHawk

I'm reaching out for advice on what we can do next as we’re in a really difficult situation.

We were supposed to complete on both our sale and purchase on October 28th. We had packed everything up and were ready to go, but then late in the day, we were told completion wouldn’t happen because the vendor’s signed contract hadn’t been received. We were reassured that the 29th could work if the contract arrived in time.

When the 29th came, however, we were informed mid-morning that completion couldn’t go through that day either. To make things worse, our buyers’ mortgage funds were returned since they were only available for two days.

Now we’re left in an empty house with three children (including 18-month-old twins) and have no idea what's happening next. Our solicitor hasn’t provided any updates today, and it’s been near-impossible to get through to them.

I'm trying to understand a few things:

1. If the contract wasn’t signed and received before the completion date, how could the lawyers have requested the mortgage funds?
2. How can they not inform us that they planned to exchange and complete on the same day and inform us of the risk involved in doing so.

We’ve heard that we are not eligible for compensation since the contracts weren’t signed, but we're already out of pocket with extra fees and missed work days due to the delay.

Any advice or similar experiences would be much appreciated. Thank you in advance.

FlorayG

This is weird, you shouldn't even have a completion date set until exchange of contracts is done

MattMattMattUK

NikkiHawk said:

I'm reaching out for advice on what we can do next as we’re in a really difficult situation.

We were supposed to complete on both our sale and purchase on October 28th. We had packed everything up and were ready to go, but then late in the day, we were told completion wouldn’t happen because the vendor’s signed contract hadn’t been received. We were reassured that the 29th could work if the contract arrived in time.

When the 29th came, however, we were informed mid-morning that completion couldn’t go through that day either. To make things worse, our buyers’ mortgage funds were returned since they were only available for two days.

Now we’re left in an empty house with three children (including 18-month-old twins) and have no idea what's happening next. Our solicitor hasn’t provided any updates today, and it’s been near-impossible to get through to them.

I am presuming that exchange of contracts did not happen, hence the inability to complete. Can your estate agent get hold of the seller? I would keep harassing the solicitor until they do answer and if they are local probably driver there and bang on the door. 

NikkiHawk said:

I'm trying to understand a few things:

1. If the contract wasn’t signed and received before the completion date, how could the lawyers have requested the mortgage funds?

It is not a requirement to exchange before requesting funds, so long as everything meets the lenders criteria funds can be requested. 

NikkiHawk said:
2How can they not inform us that they planned to exchange and complete on the same day and inform us of the risk involved in doing so.

Simultaneous exchange and completion is getting more and more common, though I cannot understand why everyone seems to push for it. This sounds less like simultaneous though and more than the seller has just refused to sign the contract as it sounds like you and your buyer signed yours before. 

NikkiHawk said:

We’ve heard that we are not eligible for compensation since the contracts weren’t signed, but we're already out of pocket with extra fees and missed work days due to the delay.

If contracts were not exchanged then unfortunately you will not be entitled to anything, the penalties and costs only apply if contracts are exchanged but completion fails, not if exchange never happens. 

daveyjp

FlorayG said:

This is weird, you shouldn't even have a completion date set until exchange of contracts is done

Exchange and completion were planned for the same day.

user1977

What were you told about the expected date of exchange?

There's no need for exchange to have taken place before mortgage funds are requested.

NikkiHawk

user1977 said:

What were you told about the expected date of exchange?

There's no need for exchange to have taken place before mortgage funds are requested.

The exchange date was put forward by the vendor 2nd October (who hadn't yet received a signed contract) and agreed by all in the chain. We were told nothing about a problem until the day of exchange.
It wasn't planned for Exchange and completion on the same day.

user1977

NikkiHawk said:

user1977 said:

What were you told about the expected date of exchange?

There's no need for exchange to have taken place before mortgage funds are requested.

The exchange date was put forward by the vendor 2nd October (who hadn't yet received a signed contract) and agreed by all in the chain. We were told nothing about a problem until the day of exchange.
It wasn't planned for Exchange and completion on the same day.

Ok, but presumably when 2 October came and went without exchange happening, you knew things had changed?

MattMattMattUK

NikkiHawk said:

user1977 said:

What were you told about the expected date of exchange?

There's no need for exchange to have taken place before mortgage funds are requested.

The exchange date was put forward by the vendor 2nd October (who hadn't yet received a signed contract)

They would not have received a signed contract at that stage, they are normally signed digitally on the day of exchange. 

NikkiHawk said:
and agreed by all in the chain. We were told nothing about a problem until the day of exchange.

It wasn't planned for Exchange and completion on the same day.

If you were told the target for completion day was 28th and contracts had not been exchanged before that when were you expecting exchange to happen if not simultaneously? 

As your vendor has been AWOL for the whole of the month, did that seem a warning sign to your solicitor, or to you?

saajan_12

Sounds like a customer service issue and lack of advice in a way you understood from the solicitor. 

Exchange is those signed contracts becoming effective, ie you now agree to buy that house from that seller at that price on that date. If the solicitor didn't tell you that you HAD exchanged, then the default is that you HADN'T, so NOT contracted to buy the house and so NOT covered if anything fell through. Better service would include the solicitor explaining this as well as the pitfalls of same day exchange and completion.

However at the same time, at what point did you book the removals etc? Did you ask whether it was safe to do so and the date was 100% confirmed?

NikkiHawk

user1977 said:

NikkiHawk said:

user1977 said:

What were you told about the expected date of exchange?

There's no need for exchange to have taken place before mortgage funds are requested.

The exchange date was put forward by the vendor 2nd October (who hadn't yet received a signed contract) and agreed by all in the chain. We were told nothing about a problem until the day of exchange.
It wasn't planned for Exchange and completion on the same day.

Ok, but presumably when 2 October came and went without exchange happening, you knew things had changed?

My reference to 2nd October is the date the completion date of 28th October was agreed by all - So on 2nd October all partied agreed that the completion date on both properties would be Monday 28th October.

At no point did the solicitor inform us that a signed contract from the vendor was outstanding.

The seller of the house we are purchasing sent the signed document via royal mail special delivery as digital signatures were not accepted. She has since sent another copy yesterday to be delivered today.

Still awaiting confirmation that this has been received.

TheJP

NikkiHawk said:

We’ve heard that we are not eligible for compensation since the contracts weren’t signed, but we're already out of pocket with extra fees and missed work days due to the delay.

Even if the contract was signed you haven't exchanged therefore you had not entered into a contract, unfortunately all out of pocket expenses until you complete are yours to pay.