If contracts are exchanged.....

tcall

then the vendor has problems which delays the completion date, what happens to the deposit if the buyer pulls out?

Doozergirl

The vendors get to keep the deposit and can sue the buyer for breach of contract! Not the best time to pull out methinks...

tcall

hmmmm.
I'm in an odd situation.
Exchange happened yesterday, as completion was set to happen next week. Following exchange (remember this was yesterday), the vendors solicitor advised that the vendors had a problem with their mortgage, and the completion date has been put on hold, with no date now known.
It seems strange we were only told of this after exchange.

lush_walrus

Doozergirl is sort of correct, although that situation is slightly more complex than that. Firstly if the vendor can not complete on the actual day that has been set, then they are ultimately in breach of contract, regardless of the reason. The buyer would therefore be entitled to compensation (along with anyone else in the chain who is effected by the change in date). This situation is very very rare, but on the occassions that it might happen the buyer would need to work out what costs they have been subjected to as a result of the change of date and submit details to their solicitor to be put forward to the vendor. Some contracts will already have the level of compensation written into them for this very occassion. Generally costs the person may incur would include the costs of removal vans which may be already booked, the cost of taking the day off of work, paying an extra amount towards your mortgage etc.

Secondly, if the buyer then pulls out, then it would again depend on their situation as to the conseqences for pulling out. If the buyer is indeed a vendor too, then the buyer can be sued by their buyer (if that makes sense).

IF the buyer does choose to pull out then almost certainly the deposit will be lost, but this is at the discretion of all parties involved.

Happy_saver_4

As I understand the vendor is failing to complete because he's having mortgage problems - presumably with his new purchase?

This truly has no bearing whatsoever on his failure to complete his contractual agreement regarding the sale of his existing property.

I should discuss this with your sols and IF the vendor has a 'deep pocket' consider taking legal action to recover ALL of your expenses incurred due to his failure to complete. Hotel accommodation etc.

You will not lose your deposit if your solicitor handles your withdrawal correctly; due to the vendors breach of contract. You should recover your deposit + compensation !