5 Months So Far And No Sign Of Completing?

mickwinwood

my parents paid 10% deposit (£16k) on their ideal leasehold property, we are now 5 months down the line and no closer to completing, the latest hold up of many being the seller as lost the builders guarantee, the solicitor says it could be a couple of days or several weeks!!!! my parents are incurring private rent charges and storage fees for their furniture
this is a no chains sale parents paying cash and was told initially that the sellers wanted a quick sale hence my parents put their offer in.

Q who holds the £16k who is making the interest? are my parents entitled to some or all of it?

Q how long can a seller draw out the sale before a buyer can withdraw without loosing their 10% deposit?
my parents are become quite stressed with all of this so any advice would be more than welcome
thanks mick

Flat_Eric

Have they exchanged contracts?

lotto-dreamer

If there is no fixed completion date set then it is unlikely they have exchanged contracts (unless this is a new build property with completion on notice?)

If exchange has not taken place, they can withdraw from purchase any time they like and get back their £16,000. Assuming it is simply being held by their own solicitors in client account waiting for exchange.

It the deposit has been paid to a developer/seller - it might be best to read the terms and conditions of this arrangement.

chappers

if they have exchanged then their solicitor can issue a notice to complete the vendor must then complete within 10 days or the purchaser can back out of the deal, without loss and also sue for any costs incurred due to the aborted sale.get their solicitor to pull his finger out.

mickwinwood

hi, thanks for quick replies, property is 3 years old and no they they have not exchanged yet

Flat_Eric

mickwinwood wrote: »

my parents paid 10% deposit (£16k) on their ideal leasehold property, we are now 5 months down the line and no closer to completing, the latest hold up of many being the seller as lost the builders guarantee, the solicitor says it could be a couple of days or several weeks!!!! my parents are incurring private rent charges and storage fees for their furniture
this is a no chains sale parents paying cash and was told initially that the sellers wanted a quick sale hence my parents put their offer in.

Q who holds the £16k who is making the interest? are my parents entitled to some or all of it?
If they have already paid their solicitor the £16,000 deposit then this is more than likely being held in the solicitors client account - the interest that is being accrued may be payable to your parents if they asked for it but there are rules on this and if it is below a certain amount then I think the solicitor doesn't have to pay it.
Q how long can a seller draw out the sale before a buyer can withdraw without loosing their 10% deposit? Up until exchange of contracts your parents can pull out at any time. The only money they would lose would be any search fees they paid out, solicitors fees incurred for conveyancing work done to date etc I wouldn't expect them to lose anything else (but cant be sure as not seen the paperwork) For example did they pay a non refundable deposit say of a certain amount to secure the property in the beginning? Have they agreed to pay their sellers costs whether the matter proceeds or not?
my parents are become quite stressed with all of this so any advice would be more than welcome

thanks mick

I have posted a reply in bold/italics above. Eric.

Doozergirl

With regard to the builder's guarantee, the vendor should be able to call the NHBC and get a replacement certificate for about £40.

5 months with no chain is totally pathetic, there would be very few reasons for it to take this long and if there really are so many issues to rectify then I would be looking over these carefully and considering whether these would be avoided when your parents came to sell.

I'd lay down the law. Exchange by a week Friday or No Sale.

And in the future, don't transfer any deposits until your solicitor says that you are ready to exchange imminantly.

saggingvenus

With regard to a missing NHBC certificate, there is no real need to be holding the original certificate - all you need for the guarantee with NHBC is the certificate number - if a claim is made via them they will check the certificate number, not ask for proof of the actual 'hard copy' certificate. Contact NHBC for confirmation. I cannot see in your post what has caused the delay up to this issue? Should have completed weeks ago unless there is something else that is causing an issue?

mickwinwood

well further to your advice my mother contacted her solicitor who has informed her that the building was never registered with nhbc? so there isnt a certificate number??? (dont ask me im just relaying what hey have been told) my mother has given them 2 weeks in which to get everything finalised or they are with drawing from the sale. they will get their £16k back
Q anyone know the threshold for when when they should be getting interest as after 5 months on £16k it must be building up, many thanks for help

lotto-dreamer

The interest will be based on whatever rate the solicitors are getting depending on who they bank with.

If they have put it on special deposit it may be more - but in this case it is likely it has simply been kept in their ordinary client account so they could withdraw it quickly for exchange.

If you know which bank solicitors use (when they asked for the money to be paid in?) you could probably take a rough guess at the amount of interest earned - this will be paid either net or gross