Missing Closing Date on House Purchase

tommyh1977

Hi, just need some advice as worried about the following. We signed contracts for a house purchase and the vendor returned his signed contracts to our solicitor with a closing date of sale of 15 days. However that 15 days has now passed and we are at 19 days. My solicitor is still waiting on drawdown of funds from mortgage, which were delayed because the lady handling our file was out sick (council mortgage). I'm just concerned what would be the consequences if this was to drag on much longer? Could the vendor pull the pin? Could there be penalties etc? My solicitor is chasing hard at the moment and is saying we are still ok.

Bigcheeze

tommyh1977 wrote: »

Hi, just need some advice as worried about the following. We signed contracts for a house purchase and the vendor returned his signed contracts to our solicitor with a closing date of sale of 15 days. However that 15 days has now passed and we are at 19 days. My solicitor is still waiting on drawdown of funds from mortgage, which were delayed because the lady handling our file was out sick (council mortgage). I'm just concerned what would be the consequences if this was to drag on much longer? Could the vendor pull the pin? Could there be penalties etc? My solicitor is chasing hard at the moment and is saying we are still ok.

You're fine. Not unusual for these things to run on a couple of weeks longer. If seller was getting impatient you'd receive a letter giving notice to close within 30 days or else interest will apply.

tommyh1977

Phew, thanks for that!!!

tommyh1977

Hi. me again. Looks like we are another week and a half off closing (3 weeks over in total if we close by end next week). As you know a bit more about the process than I do can you give me guidelines as what to expect. Basically can vendor charge interest before serving closure notice. In closure notice what do vendors generally opt for..........i.e. retract property and put back on market, charge interest etc? I'm very concerned at the moment.

The_Conductor

In the current climate the seller will probably hold-on, providing its obvious that you're intending to follow through. Its quite uncommon for interest to be charged on the delay (it was the norm during the boom years, but not anymore). If the seller doesn't believe the sale is going to happen- they'd pull the plug and re-advertise the property, quite possibly trying to charge any costs of re-advertising/solicitors etc to the deposit that you have presumably paid.

Bigcheeze

tommyh1977 wrote: »

Basically can vendor charge interest before serving closure notice.

No they can't.

You shouldn't be worried unless you have a financing problem yourself, such as trouble drawing down the mortgage.

Bigcheeze

smccarrick wrote: »

If the seller doesn't believe the sale is going to happen- they'd pull the plug and re-advertise the property, quite possibly trying to charge any costs of re-advertising/solicitors etc to the deposit that you have presumably paid.

Just to clarify, while they can pull the plug, they can't just charge costs because they believe the sale will fall through. There is a process to be followed.

ted1

Some contracts state that there is a fee for each day that is missed.

tommyh1977

Oh well its one saga after another on this house purchase. Basically we are now in funds but might be unable to complete sale. Why I hear you ask. Basically it's a court order receiver sale of an investment property, one of many of many for the developer, which went wrong. However just as we come into funds we now have gotten notice from receivers solicitor that the developers wife is trying to get an injunction against all properties reposessed and for sale. We really don't know what to do now and are really stressed at the consequence of the purchase falling through. My solicitor has arranged a meeting with receivers solicitor. Any opinions or ideas?

StillWaters

Oh god that sounds like a nightmare, and something with the potential to drag on. All you can really do is take guidance from your solicitor.
Maybe ask over on thepropertypin too if anyone has any experience of this.

The_Conductor

Ok- the developer's wife is trying to get an injunction against the repossession of the properties, and their sales. Short of magic'ing money up to pay the creditors, who doubtless had the receiver appointed in the first instance, she doesn't have a leg to stand on. Assets such as these are not protected assets, such as the family home might be- and while she may be trying to assert a 50% ownership in them- the inverse of the equation is she also has a 50% ownership of the debts associated with the properties........

Its messy- and it could well go to court- but given the limited information you've imparted- I can't see how or why the receivership would be rescinded- which is what she is seeking whether she realises it or not.

tommyh1977

Ya basically both the receivers solicitor and my solicitor have said she hasn't a leg to stand on, it's just this could drag on for months so she can get her day in court.

I imagine the receiver is now in a position where he can't close the sale, or would she have to succeed in getting the injunction before he would have to put things on hold?

Sorry for all the questions but this whole process has been a rolller coaster nightmare!!!

The_Conductor

It really is the case that you're just going to have to sit back and wait to allow events play out here. I'd love to know what on earth her solicitor is thinking- he or she will be doing damn well to get paid a penny for this stunt.......

tommyh1977

I love the way use call this mess a "stunt". You hit the nail on the head there. Unfortunately this stunt could cost me dearly as I reckon to have the purchase fall through I'll be out of pocket about 5k:eek::eek:

3DataModem

Bigcheeze wrote: »

No they can't.

You shouldn't be worried unless you have a financing problem yourself, such as trouble drawing down the mortgage.

Yes they can, if its in the contract. My solicitor always put that in when I sold. I never did it though, just used it as an incentive to get them moving.

tommyh1977

Oh well from one problem to another. We went to close sale last week and couldn't get a closing date from vendors solicitor. My own solicitor suspected something was happening in the background. He did some searches and came up with a revenue judgement against the property as well as the litigation pending order by the wife of the developer also lodged in land registry against property. This is one of many repo properties and these listings are against all of the others as well.

We are really worried now as we have spent months securing finances for this property as well as having spent thousands on furniture /flooring deposits etc.

My solicitor reckons the receiver will fail to settle with revenue and will walk away with his hands swinging and nothing we can do about it. Financially we could end up in a hole of 7-8k euro. We have now served a notice of closure to the receivers solicitor but alas no response. The receivers solicitor will not return phone calls, emails or letters to my solicitor. The Auctioneer is also in hiding, I love the way he borderline harrassed me for last few months to keep things moving, now when we want to put pressure on vendor he runs and hides.