Seller solicitor being chased after exchange — normal or worrying?

Tatatun1986

Hi all,

I have exchanged on a leasehold flat in mid-Dec, completion set for 30 Jan. My solicitor is still chasing the seller’s solicitor for some post-exchange bits (TR1, Deed of Covenant, indemnity insurance for a lease issue, staircasing to 100%, TA13, etc.).

Seller’s solicitor already said they’d deal with all of this pre-/on completion.

My solicitor has now sent a “second polite reminder / third request” email chasing the same items. The tone isn’t aggressive, just firm and procedural, but the wording made me slightly anxious.

For those experienced with conveyancing:

• Is this normal post-exchange chasing, especially with leasehold/shared ownership?

• At what point (if any) should a buyer actually start worrying about completion risk?

• Anything sensible I should be doing right now other than staying ready with funds?

Appreciate any insight — first time buyer nerves kicking in

JM68

It's not normal to exchange when things like deeds, indemnities and basic TA forms are still outsanding. As you may be aware, after exchange there can be significant penalties if a party does not proceed. Are you buying with a mortgage? If so, that could be even more cause for concern if your bank requires certain things for you to be able to complete. Are you sure you have actually exchanged contracts? 

Tatatun1986

JM68 said:

It's not normal to exchange when things like deeds, indemnities and basic TA forms are still outsanding. As you may be aware, after exchange there can be significant penalties if a party does not proceed. Are you buying with a mortgage? If so, that could be even more cause for concern if your bank requires certain things for you to be able to complete. Are you sure you have actually exchanged contracts? 

Sellers lawyer said before exchanging contracts:
1. On Deed of covenant - Noted and to following post exchange and pre completion
2. Indemnity insurance - We will obtain defective lease indemnity policy and incept the same on completion

P.S - I already have a mortgage offer from Bank

JM68

The potential issue is that exchange means you are now legally obliged to buy the property but you can only do so if your mortgage company is satisfied anything left to be done that is required by them gets done and they release the mortgage funds. So, for example, if the deed and/or indemnity is required by them but is not forthcoming (or the terms are not acceptable to them) they won't release the mortgage funds you need to buy (the mortgage offer alone does not oblige them to to do so). In that case you could not proceed and could lose your deposit as the penalty. It may well be the case your solictor has all the risks covered and is satisfied that such a situation can not arise (or you are covered if it did e.g. by undertakings given by the seller's solicitor). It would be very unusual if they didn't!!! But, if it were me, I would check this point my solicitor just for peace of mind.

user1977

JM68 said:

if the deed and/or indemnity is required by them but is not forthcoming (or the terms are not acceptable to them) they won't release the mortgage funds you need to buy (the mortgage offer alone does not oblige them to to do so). In that case you could not proceed and could lose your deposit as the penalty. 

Only if the OP is in breach, which they won't be if the contract provides for the seller delivering these items at completion (and therefore it's the seller who is in breach). I don't see anything here to be particularly concerned about.

Tatatun1986

user1977 said:

JM68 said:

if the deed and/or indemnity is required by them but is not forthcoming (or the terms are not acceptable to them) they won't release the mortgage funds you need to buy (the mortgage offer alone does not oblige them to to do so). In that case you could not proceed and could lose your deposit as the penalty. 

Only if the OP is in breach, which they won't be if the contract provides for the seller delivering these items at completion (and therefore it's the seller who is in breach). I don't see anything here to be particularly concerned about.

Thank you sir. Just wanted to check, my solicitor chased twice but seller's solicitor is yet to come back. They habve not yet acknowledged the receipt of the email and get back shortly. Do I need to worry anything or its normal conveyancing process? Reminder my completion is on 30th January