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Are we being unreasonable?

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  • 1993
    1993 Posts: 10
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    Thank you all for your kind replies - we feel exactly the same way, the exchange/completion being so close together wasn't something we purposefully arranged but as the vendor has to move on a certain day of the week that was what we ended up planning.

    Now that it's all up in the air we would be happy to exchange and complete a couple of weeks apart to give us time to book more leave, but they won't even exchange until this issue is resolved (who knows how long that's going to take!)
  • franklee
    franklee Posts: 3,867
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    1993 wrote: »
    but they won't even exchange until this issue is resolved (who knows how long that's going to take!)
    That is totally reasonable as if their purchase falls through they would be left homeless if they had already exchanged with you. As for how long it's going to take I'd set your estate agent onto asking the other EA to find out exactly what the issue is and how it's being addressed. Or if you are in contact with your vendor ask them. Then I'm afraid it's just a case of waiting it out so try not to stress about things that are out of your control :)
  • 1993
    1993 Posts: 10
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    Thank you :)

    I'm hopeful it will work itself out in the end - it didn't feel like anyone was in any particular rush to get things sorted, but after discussing where we stand I think it may get them moving at a quicker pace to get the issue fixed urgently so we can all move and be happy!
  • bobwilson
    bobwilson Posts: 595 Forumite
    edited 15 May 2018 at 7:26PM
    In fact exchange is no guarantee of completion and anyone who says it is, doesn't know the law. Either side can default on the contract, especially the seller. He'd only lose a couple of £thousand at most if he defaulted. The buyer however would be liable to lose their deposit (usually around 10% the price).

    There have also been cases where the buyer defaulted through no fault of their own- the mortgage company changed their mind at the last minute (which they're entitled to do), and the buyer ended up losing their 10% deposit.

    People say "it's rare" but it's only rare until it happens to you. I know of people it has happened to. Exchanging and completing on the same day minimises this risk.
  • dunroving
    dunroving Posts: 1,881
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    bobwilson wrote: »
    In fact exchange is no guarantee of completion and anyone who says it is, doesn't know the law. Either side can default on the contract, especially the seller.

    Do you know what proportion of transactions this applies to? I would imagine an infinitesimal number. And in cases where it does, the aggrieved part has legal redress, whereas in a simultaneous exchange/completion scenario, there is pretty much no redress if either party changes their mind.

    Either way, the point still stands that there is much more certainty in a two-stage purchase than a simultaneous exchange/completion one.
    (Nearly) dunroving
  • bobwilson
    bobwilson Posts: 595 Forumite
    edited 15 May 2018 at 7:30PM
    bobwilson wrote: »
    In fact exchange is no guarantee of completion
    dunroving wrote: »
    Do you know what proportion of transactions this applies to?

    I do actually. It applies to 100% of property transactions in the UK, until the law is changed.
    dunroving wrote: »
    there is much more certainty in a two-stage purchase than a simultaneous exchange/completion one

    There is no such thing as a "simultaneous exchange/completion" in the UK; exchange has to happen before completion. The question of certainty is a matter of opinion.
  • dunroving
    dunroving Posts: 1,881
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    bobwilson wrote: »
    Yes, it applies to 100% of property transactions in the UK, until the law is changed.

    I meant what proportion of transactions result in a default between exchange and completion.
    (Nearly) dunroving
  • bobwilson
    bobwilson Posts: 595 Forumite
    dunroving wrote: »
    I meant what proportion of transactions result in a default between exchange and completion.

    That may have been what you meant, but it isn't what you asked ;)
  • dunroving
    dunroving Posts: 1,881
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    dunroving wrote: »
    I meant what proportion of transactions result in a default between exchange and completion.
    bobwilson wrote: »
    That may have been what you meant, but it isn't what you asked ;)

    So, now I am asking it ... do you know?
    (Nearly) dunroving
  • steampowered
    steampowered Posts: 6,176
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    edited 15 May 2018 at 7:54PM
    bobwilson wrote: »
    There is no such thing as a "simultaneous exchange/completion" in the UK; exchange has to happen before completion. The question of certainty is a matter of opinion.

    Untrue. Simultaneous exchange and completion is a perfectly acceptable and not uncommon way to do transactions in the UK.

    The way it works is that the solicitors will show each other copies of signed but undated documents, and will then have a completion call to confirm that the signatures may be released and the documents dated. The effect being that exchange of contracts and completion of the transaction happen at the same time.

    Of course either party can back out at any time before that point. Meaning that the risk of the seller withdrawing from the transaction at the last minute is much greater than if contracts had been exchanged previously.
    bobwilson wrote: »
    In fact exchange is no guarantee of completion and anyone who says it is, doesn't know the law. Either side can default on the contract, especially the seller. He'd only lose a couple of £thousand at most if he defaulted. The buyer however would be liable to lose their deposit (usually around 10% the price).

    I was involved with a case where the seller defaulted on a transaction after exchange, in relation to a flat in London, during a time of rising property prices. The buyer sought specific performance (or alternatively damages). It took some time for the case to work its way through the system - the price of the contract was £300k but by then the value of the flat had increased to £450k.

    As you'd expect the buyer only had to pay the originally agreed price, so were getting a flat worth £450k for £300k (in actual fact they only had to pay £240k or so, as they had permission to deduct their legal costs from the price paid).
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