Buyer pulls out on completion day.

pothole71

We are in the process of selling a house and our agreed completion day was today Friday 8th May, our solicitor asked us to send an email to them confirming to go ahead with the sale which we did, apparently this email has to be sent on completion day.

An hour later we got a call from our solicitor telling us the buyer had pulled out, when the Estate agent finally got in touch with the buyer his excuse was a friend told him he was paying too much for the house, the agent informed our solicitor of this.

When the solicitor contacted us, all they seemed to be concerned about was the fact that we still need to pay their invoice.

The question I am asking is, if a completion date is agreed can I assume that the contract was signed by both parties and he is in fact in breach of contract.

What questions should I be asking my solicitor with regards to this, as I don’t think they have done enough

Thanks.

Worried_fool

When did you exchange?

Flugelhorn

https://forums.moneysavingexpert.com/discussion/comment/81991828#Comment_81991828

probably were planning to exchange and complete on the same day - having signed the contracts was irrelevant

Tabieth

Have you exchanged contracts?

Jemma01

Oh dear dreadful. Ask your solicitor if the contracts have actually been exchanged, because if so it would be a breach of contract. If the exchange happened, did the buyer pay the deposit? Did your solicitor serve them a notice to complete? If these things happened you could be entitled to the deposi and loses going through that process. But it sounds like no exchange of contract happened.

Yorkie1

Each party signs their contract before exchange takes place. Exchange does not happen until all parties are happy, and this might be - by agreement - on the same day as completion. The signature of the contracts does not bind anyone to anything; it is exchange which does that.

If, as others have said, you did not exchange before today, then the buyer hasn't done anything legally wrong. I do feel for you, though, to have this happen today.

If you had already exchanged, then as others have said, there are remedies available to you. None of which help you this evening. It sounds, from what you say about your solicitors' comments, that you had not already exchanged.

Yes, you will need to pay the solicitors' bill as they have done the work you instructed them to do. Unless there were some specific clauses in your contract with them related to if the sale didn;t go through.

I would also be getting in touch with your EA again. Difficult to tell whether the buyer just made up a reason on the spot, or whether there is scope for the buyer to decide to crack on after today's wobble. If they did decide to crack on - or if you have to find another buyer - you would be well advised to ensure that you don't arrange exchange and completion on the same day. Your sad circumstances are exactly why this is not advised.

m0bov

Have you exchanged?

Flugelhorn

https://forums.moneysavingexpert.com/discussion/comment/81991923#Comment_81991923

I strongly suspect they hadn't and in fact this was going to be a simultaneous exchange and completion (seeing as the solicitor wanted permission on the day to go a ahead and that is usually only for exchange)

OP has probably now discovered what the process is and discovered that this can happen

m0bov

Never a good idea on the same day.

clairec666

It would be good to hear from the OP whether exchange had taken place. If not, unfortunately there's no breach of contract.

It's possible that the buyer will be hit with solicitors fees too, and may decide it's worth going ahead with the sale after all. It sounds like they might be a bit naive about the whole process given that they're taking last-minute valuation advice from a "friend" on moving day!

(Assuming this is in England - I know things work a bit differently in Scotland)

Keep_pedalling

According the OPs previous post contracts were exchanged.

https://forums.moneysavingexpert.com/discussion/6667250/capital-gains-tax-do-we-need-to-pay-anything#latest

Fortunately this is a probate sale rather than their current home.