Buyer hospitalised after exchange

EssexHebridean

Hi OP - you've already had some good help here. Also some posts which appear to be designed to make you fear or suspect the worst too, but those are probably best ignored! 

Your solicitor needs to ask the buyer's solicitor the direct question - are they in funds, and do they have signed documentation. As exchange has already happened, if the answer to both of those is "yes" then there is no reason that I can think of why completion should not be able to happen. 

Best to now go to simply communicating about this with your solicitors really - there isn't much the agents can do at this stage other than be a further voice to try to make contact with the buyer. 

Please do keep the thread updated - as you say this is something which could indeed be really helpful to others down the line! I really hope your situation gets sorted quickly, smoothly and with as little financial impact as possible.

Flugelhorn

EssexHebridean said:

Your solicitor needs to ask the buyer's solicitor the direct question - are they in funds, and do they have signed documentation. As exchange has already happened, if the answer to both of those is "yes" then there is no reason that I can think of why completion should not be able to happen. 

Agree if they are in fund and documents are signed then they could get on with it and get the chain moving 

AskAsk

Flugelhorn said:

EssexHebridean said:

Your solicitor needs to ask the buyer's solicitor the direct question - are they in funds, and do they have signed documentation. As exchange has already happened, if the answer to both of those is "yes" then there is no reason that I can think of why completion should not be able to happen. 

Agree if they are in fund and documents are signed then they could get on with it and get the chain moving 

the fact that it hasn't completed, means the answer is no, else they would have completed.  solicitors don't check with clients before completion, like they do before exchange, so it would have happened without the solicitors knowing or being interested in the buyer's situation between exchance and completion as the solicitors don't need any input from the buyer to complete if they already have funds.

Yorkie1

pinkshoes said:

If the buyer passes away then he won't be needing a house... so it might not be sensible for his estate to complete on the sale. 

But... his estate will owe money for any expenses down the chain for a failed completion. So your buyer claims from you, you then claim this amount from the estate. Keep a record of any expenses. 

How many people in the chain? 

As he was a cash buyer, then you will get your money back as at least he clearly has assets! 

If he'd already exchanged, then could the solicitor not complete on his behalf? The solicitor would need to act in the client's best interests, so they need to establish whether completing then selling on the property would be better than not completing and paying out for all the losses. 

A distant relative of mine died between exchange and completion. My family completed the sale for him as they had POA and realised that not completing would cost them a lot of money in expenses as the people purchasing had to move out of their rental. 

Just picking up on this for the benefit of anyone reading this thread later on. POA ceases when the person concerned dies. So it does not provide the authority for the former attorneys to complete where the donor has already died, even if exchange has occurred.

If the same people were also executors, then they might have been able to complete while wearing the 'executor' hat, but not the 'POA' hat.

chainhell

Thanks Yorkie1 that’s helpful to know.  It’s been a long day waiting for news.  The best outcome for everyone is if the poor gentleman recovers.   Such an awful thing to happen him just before he moves.  Sadly we’ve have no news yet.  No idea what is wrong with him.  Solicitor only has communication with the hospital and they won’t give out any details.  Just living in our current home with everything packed.  

chainhell

Just an update, the buyer is still in hospital.  Solicitor has no direct contact with them just a limited line with the hospital.  No idea of prognosis.  We have had confirmation that the full funds aren’t with the solicitor ( as suspected).  

Not sure how long the chain will wait in limbo like this.  

silvercar

AskAsk said:

Flugelhorn said:

EssexHebridean said:

Your solicitor needs to ask the buyer's solicitor the direct question - are they in funds, and do they have signed documentation. As exchange has already happened, if the answer to both of those is "yes" then there is no reason that I can think of why completion should not be able to happen. 

Agree if they are in fund and documents are signed then they could get on with it and get the chain moving 

the fact that it hasn't completed, means the answer is no, else they would have completed.  solicitors don't check with clients before completion, like they do before exchange, so it would have happened without the solicitors knowing or being interested in the buyer's situation between exchance and completion as the solicitors don't need any input from the buyer to complete if they already have funds.

Normally that is true,  it if the client has notified his solicitor that he is in hospital and should defer completing until the client says so, then the solicitor would point out the risks and liabilities, but ultimately conform. In this case we know the solicitor is aware his client is in hospital.

silvercar

chainhell said:

Just an update, the buyer is still in hospital.  Solicitor has no direct contact with them just a limited line with the hospital.  No idea of prognosis.  We have had confirmation that the full funds aren’t with the solicitor ( as suspected).  

Not sure how long the chain will wait in limbo like this.  

You should give notice to complete. However well meaning you are, this is a transaction and the buyer (or his estate if the worst happens) will be liable for your losses. 

chainhell

silvercar said:

chainhell said:

Just an update, the buyer is still in hospital.  Solicitor has no direct contact with them just a limited line with the hospital.  No idea of prognosis.  We have had confirmation that the full funds aren’t with the solicitor ( as suspected).  

Not sure how long the chain will wait in limbo like this.  

You should give notice to complete. However well meaning you are, this is a transaction and the buyer (or his estate if the worst happens) will be liable for your losses. 

Thanks, all solicitors in the chain have agreed to wait at the moment to give him chance to recover.  Although he’s likely been in hospital for a couple a weeks so this must be serious.  My fear is if the top of the chain give notice to complete the whole chain collapses and it becomes a legal mess.  

 There are approximately 6 in the chain.  I hate to think what the losses could be, which I believe will be passed down to this gentleman who could lose everything!  

chainhell

silvercar said:

AskAsk said:

Flugelhorn said:

EssexHebridean said:

Your solicitor needs to ask the buyer's solicitor the direct question - are they in funds, and do they have signed documentation. As exchange has already happened, if the answer to both of those is "yes" then there is no reason that I can think of why completion should not be able to happen. 

Agree if they are in fund and documents are signed then they could get on with it and get the chain moving 

the fact that it hasn't completed, means the answer is no, else they would have completed.  solicitors don't check with clients before completion, like they do before exchange, so it would have happened without the solicitors knowing or being interested in the buyer's situation between exchance and completion as the solicitors don't need any input from the buyer to complete if they already have funds.

Normally that is true,  it if the client has notified his solicitor that he is in hospital and should defer completing until the client says so, then the solicitor would point out the risks and liabilities, but ultimately conform. In this case we know the solicitor is aware his client is in hospital.

The buyer has been uncontactable for this whole period.  The solicitor had to contact hospitals to find him.