Completion agreement post exchange (owner damaged property)

PURPLEREDHAT

Does anyone have any experience of needing to write a completion agreement? I have exchanged but completion is delayed from the agreed date because the owner has damaged the house I am buying  to the extent that it is unliveable in. He has also damaged the party wall and the neighbours property. Under UK Property Law I still have to buy the house because I have exchanged on it and the seller does not want to rescind. I am going to need a robust completion agreement to cover all potential financial losses but given that I used a legal executive for conveyancing I don't currently have access to a property lawyer and my home insurance does not cover legal expenses. It's looking like 6 months to repair. Any one with a similar experience I would be grateful for your insight.

Exodi

PURPLEREDHAT said:

I used a legal executive for conveyancing I don't currently have access to a property lawyer

Sorry I'm confused by this bit - I would have thought this would have been squarely in your conveyancers remit?

Have you mentioned it to them?

Flugelhorn

Time to get a proper lawyer - your conveyancer should find one - maybe you could claim the cost back from the insurance company

PURPLEREDHAT

Thank you. Apparently it's not standard conveyancing. I have discussed at length- I could use the dispute resolution team lawyer within the same company but would have to pay for their time drawing up the agreement. 

PURPLEREDHAT

Reply to Flugelhorn - I cannot claim the cost back against my insurance hence asking whether anyone has any experience to share. 

MyRealNameToo

PURPLEREDHAT said:

Does anyone have any experience of needing to write a completion agreement? I have exchanged but completion is delayed from the agreed date because the owner has damaged the house I am buying  to the extent that it is unliveable in. He has also damaged the party wall and the neighbours property. Under UK Property Law I still have to buy the house because I have exchanged on it and the seller does not want to rescind. I am going to need a robust completion agreement to cover all potential financial losses but given that I used a legal executive for conveyancing I don't currently have access to a property lawyer and my home insurance does not cover legal expenses. It's looking like 6 months to repair. Any one with a similar experience I would be grateful for your insight.

What was the cause of damage? It sounds accidental rather than deliberate but need to check

Normally you just claim on your insurance that you were told to buy in preparation for exchange when it becomes your legal interest. 

If you didnt follow instructions and forgot to buy the insurance then you can see if he has insurance and if it covers this scenario, some will allow the seller to cover post exchange others dont because it becomes the buyers interests. 

penners324

The vendor has to cover all costs due to delayed completion 

gwynlas

Did this damage happen prior to exchange and go undeclared?

Are you borrowing for the purchase, if so what does lender say?

You are meant to take out insurance on exchange because you are then tied into completion as you are aware.

You do need a proper solicitor to proceed and I presume that their costs could be added to the costs of renovation.

MyRealNameToo

penners324 said:

The vendor has to cover all costs due to delayed completion 

The vendor doesnt need to agree to a delay, they can continue the transaction as previously agreed. This is why you are told to buy insurance to take effect as soon as exchange has occurred 

doodling

Hi,

This should all be being dealt with by the insurance you took out at the point of exchange.  If you didn't do this then:

You need paid for legal advice urgently.

If you are taking out a mortgage then you really, really, need paid for legal advice urgently as your conveyancer could (should) tell your lender who could withdraw your mortgage leaving you to lose your deposit.

Herzlos

What's the penalty on your part if you refuse to transfer the money and complete?

What actually happened? This sounds like some serious damage which I assume must be from the vendor vandalising the place.