Vendor missed closing date - what are my options?

JDxtra

I signed contracts to purchase a property back in April.

The agents made it clear that the closing date would not be until September as the vendor was building a new property. This September date also included contingency in case their builder fell behind schedule.

It’s a property I really wanted so I signed contacts with a closing date of September 1st.

Ten days before the closing date our solicitor starting making contact with theirs to arrange a time for completion. However there was no response. Every day our solicitor tried to contact theirs but again no response. Two days before the proposed closing date our solicitor got a response that the vendor wouldn’t be able to close the sale on the proposed date and they’d have feedback for us at the end of the week.

I was furious at this as I had already booked a weeks holidays to move in and couldn’t re-schedule at such short notice. Our cheque from the lender had been issued and now had to be sent back. I now also had to arrange temporary accommodation as I was scheduled to move out of my rented property a few days after the proposed closing date.

Then the next day when I was meant to receive an update came and went. Even constant harassing of our solicitor resulted in no feedback from theirs.

Last night I took the unusual step of calling the vendor directly. They said they had problems with their new house, a sick child etc. I asked him if he could give his solicitor an updated closing date. He said he just did – and the date was mid next week.

Then today, I contacted my solicitor again to see if they received that update. And they said no – but the vendor’s solicitor would have an update for us on Friday.

Basically I feel like I’m being messed about here. We both signed contracts for completion last week and I was extremely diligent with the deposit and contracts etc. Now when it comes to actually getting the property they are giving me sketchy updates and no firm closing date. I’m also out of pocket due to transport & storage costs. Not to mention the cost and inconvenience of staying in temporary accommodation.

Anybody any suggestions for how to get this sorted?

EKRIUQ

The sale of the house is not complete untill contracts are completed, The vender can trow up the sale at any time untill he signs the contract.

So if you want the house don't piss off the vendor or the vendors solicitor.

And yes you are being messed about! but thats what solicitors are there for

Irish-Lass

Get your solicitor to serve a Completion Notifce on them

rooferPete

Hi,

I presume the contracts were exchanged ? by that I mean your Solicitor has a signed contract from the vendor to sell to you and the date was fixed in that contract.

That is the standard procedure as I know it but I'm not a Solicitor, it should be possible for you to be reimbursed any expences caused by the vendors breech of the signed contract.

I would make sure there are no clauses in the contract that allow for the vendors property being completed before you start enforcement notices.

Due to the time allowed April to September the vendors may have or should have a penalty clause in the contract with their builder, if there were change orders that caused the delays their builder may not be subject to the penalty clause and they are trying to string the final closing along to suit themselves.

Keep an account of all the expences you are incurring due to the delay including what will now be time off work instead of holiday time.

I would not recommend contacting the vendors directly as "He said / She said" argument could start implying that you verbally agreed to the extra time.

Buying and selling houses are very stressful for all concerned especially when it is your home, it might be best to seek the advice and guidance of your Solicitor regarding the unexpected outlay.

I know it's no comfort but don't be surprised if the vendor tries to use the rising prices of similar properties to negate any claim you may try to make, your Solicitor may advise you to close the sale first then seek redress.

JDxtra

rooferPete wrote:

I presume the contracts were exchanged ?

Yes, back in April.

rooferPete wrote:

Yes, contracts are signed and exchanged.
Keep an account of all the expences you are incurring due to the delay including what will now be time off work instead of holiday time.

Will do.

rooferPete wrote:

I would not recommend contacting the vendors directly as "He said / She said" argument could start implying that you verbally agreed to the extra time.

Good point, thanks.

Latest update is that the vendors solicitor knows the updated closing date (according to the estate agent). But for some reason the vendors solicitor is witholding this information from our solicitor. I'm guessing this is in case the date slips again so they are holding off until as late as possible before telling us.

Irish-Lass

you need to get your solicitor to serve a Completion Notice on them now....I deal with this on a daily bases and your solicitors should be looking after your interest

rooferPete

Hi,

This is going to be a very hard thing to do, unless someone with experience can advise you preferably from a legal background it's what I would do :

Ease up on your Solicitor a little, there is no need for a call everyday, he / she is not the cause of your problem, try to avoid signing any additions to your contract regarding agreeing to new closing dates etc.

As far as you are concerned you are ready to close when the new cheque is issued, sending back the last one was not your fault or the fault of your Solicitor.

Your Solicitor is your buffer between sanity and going crazy at the moment, and you will need them on 100% on your side to advise you on recovering your daily expences, preferably at the closing of the sale.

It appears the vendor is in breach of the contract they signed and they will have been made aware of the possible increased costs by their own Solicitor, they are probably under severe pressure at the moment so they will be expecting extra expences.

Best of luck with your new home.

Irish-Lass

You need to get on to your solicitor and you need to talk to them and ask them if serving a Completion Notice on the Vendor is appropriate in this case....without knowing the full facts etc it is hard to advice.....I have over 13 years of experience in the legal field. Your solicitor would be the best person to advice you, but i would certainly talk to them about serving a Completion Notice. But before a completion notice is served make sure that you are ready willing and able to close the sale as in your loan cheque is in place etc. But talk to your solicitor about same

Victor

Talk to your landlord and see if you can extend your lease for the moment.

Do you know where the vendors new house is, how complete is it?

Perhaps take a step back and realise that the house will still be there in a few weeks and that its not the end of the world.