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Solicitor exchanged without following mortgage advice

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Comments

  • Lkp21
    Lkp21 Posts: 3 Newbie
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    We used these Solicitors when we brought our current house and we had no issues.
    Were we wrong to assume she had sent the buildings surveyor report to the bank and they were satisfied before she exchanged?!
    Considering we are paying quite a bit of money for her services I don’t think we should have to check to make sure she’s done everything first.
    I have written a complaint to the email address issued on their website following their complaints procedure. I have been informed this is being reviewed this week and she couldn’t comment why an exchange was made under these circumstances.
    We’re supposed to complete next Friday!
  • SuboJvR
    SuboJvR Posts: 481 Forumite
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    Just been back through my emails, in addition to the phone call I also had this from my solicitor:

    "Good news, we have received the Authority to Exchange and therefore should be ready to exchange contracts tomorrow.

    I will obtain an up to date completion build date and come back to you tomorrow for your formal authority to exchange."

    It really does sound like your solicitor has missed something important here by not asking you if you were ready to exchange and just going ahead... :S
  • saajan_12
    saajan_12 Posts: 3,621 Forumite
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    cjmillsnun wrote: »
    If Santander says no, your solicitor is up **** creek without a paddle. They absolutely must seek confirmation from both you and the lender that they have authority to exchange contracts.
    G_M wrote: »
    If also acting for the lender, he appears to have Exchanged without the lender's consent.

    Not quite, exchange in between the buyer & vendor, the lender isn't usually committed to anything at this point. So the solicitor doesn't need the lender's authority to exchange.

    Ofcourse the solicitor should ensure everything is in place so the lender is satisfied and the buyer gives authority to exchange, so that the buyer isn't committed to a purchase that they can't fund because the lender refuses to lend. But that's due to the solicitor's duty to the buyer. The solicitor's duty to the lender only comes in ensuring everything is in place before completing using the lender's funds.
  • demonloop
    demonloop Posts: 38 Forumite
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    The contracts that were exchanged have to be signed, if you've signed it have you not already given your consent? That's my understanding but I could be wrong.
  • hazyjo
    hazyjo Posts: 15,470 Forumite
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    demonloop wrote: »
    The contracts that were exchanged have to be signed, if you've signed it have you not already given your consent? That's my understanding but I could be wrong.
    Definitely not. They're signed in advance - could be 3 weeks ahead, or 3 days. Certainly not legally binding until exchanged.
    2023 wins: *must start comping again!*
  • G_M
    G_M Posts: 51,977 Forumite
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    demonloop wrote: »
    The contracts that were exchanged have to be signed, if you've signed it have you not already given your consent? That's my understanding but I could be wrong.
    No.

    That's why when you sign you don't date the contract. Or insert the Completion date. The solicitor adds both these dates on your instruction at a later time (ie the day of Exchange).

    Signing in advance is purely to facilitate Exchange later - otherwise you'd have to go in to the solicitor's office to sign on the Exchange date (which won't be known in advance, and might anyway change).
  • westernpromise
    westernpromise Posts: 4,833 Forumite
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    Lkp21 wrote: »
    We used these Solicitors when we brought our current house

    Where did you bring your current house from? Maybe your solicitor is more used to how they do this there.
This discussion has been closed.
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