Exchanging contracts
 

No we haven't yet... :( We've not even got as far as signing the buggers yet.

My question is, has anyone got as far as exchanging contracts and then their buyer have pulled out or the chain has collapsed?? I know if they pull out then they have to pay 10% of your agreed price??? Or do they? If they do...has anyone actually managed to get the money out of their failed buyers? Anyone know how it works??

Ideally I'd like to book flights and maybe even hubby hand his notice in etc when we exchange, so that it will minimise the amount of time the 5 of us have to spend squeezed in at my mates house.....what a test of friendship huh?? ;)
When we exchange as it looks like the time between exchange and completion could be about 3 weeks as my buyers are going away, hubby has to work at least a months notice.....wanted to minimise the stress that's all..

Petra

Re: Exchanging contracts
 

When you exchange contracts your buyer deposited 10% (although this is frequently 5% nowadays or less) with your solicitor. If completion fails to take place as agreed, you get the deposit (+interest) after 10 days.

I have just exchanged and will leave before completion - so I hope it all goes smoothly!

Hope it all goes OK for you

Jim

Re: Exchanging contracts
 

Thing is the buyer doesn't actually deposit 10% or 5% or whatever though do they?? The money they put down as a deposit is money that's tied up in their own property and you don't actually get it until the sale goes through. If I'm right, and the sale doesn't go through then where does this 5 or 10% come from to pay you? :confused:

Any solicitors out there??

Re: Exchanging contracts
 

Hello,

Our solicitor has stated that if your buyer does not complete on the completion date agreed, they have to be given another 10 days to complete. If they still fail to complete, then our solicitor serves the buyers with a notice and after that you get the 10% deposit and they legally have to give it to you whether they have sold their property or not. (we are insisting on 10%, not 5%) You also then can sue them for additional costs to re-sell your home to someone else. You are also entitled to interest on the 10% desposit during the time it takes for you receive the deposit.

Not sure how long that will all take, however, losing 10% of the property value should be enough to ensure 99.9% of buyers go through with completion after they have exchanged contracts.

I am waiting for the exchange contracts to be signed and then I'm booking my flights.

Speak to ya soon!!!

Shell
xxx

Re: Exchanging contracts
 

We have just exchanged contracts and we are flying out the day after completion. We are in a short chain. I know for a fact the people at the bottom of the chain have put down a 10% deposit. As I'm at the top of the chain I would at least expect that money if not 10% of the value of my house.

Re: Exchanging contracts
 

The people at the bottom's deposit would go to whoever they're buying from. If your sale fell through now...you'd get YOUR buyer's 10% deposit. BUT as the money isn't actually there....you'd have to sue them for it. It's all far too scary and potentially financially ruining.
Even if you're entitled to the deposit, it'd be a nightmare trying to actually get the money and in the meantime you still have a house to re-sell and more importantly a mortgage to pay.

Don't think I'll be risking anything until it's all completed and the money's in our account!!!!

Re: Exchanging contracts
 

I think it is very rare for anyone to pull out after exchange. I have never known anyone this has happened to.

Cheers Jo

Re: Exchanging contracts
 

There's always a first...sod's law it'll be me!! :rolleyes: I'm sure there's a huge 'L' for loser stamped on my forehead.

Re: Exchanging contracts
 

Think positive :) . Our chain has collapsed at the bottom. My buyers are still desperate for ours, just need to rebuild.

Cheers Jo

Re: Exchanging contracts
 

Good Luck Jo, hope the mess at the bottom is sorted soon. I'm not holding my breath regarding ANYTHING regarding this house. It's taken an eternity to sell....its been a loooong 13 months and as far I'm concerned it nothing is certain until the money's in my grubby little mit!! :rolleyes: :D

Petra

Re: Exchanging contracts
 

The same happened to our buyer. When we finally got to exchange they were on the third. They managed to get new buyers in a matter of days. They lowered the price a bit. Which seemed to get it outthe door really quickly

Re: Exchanging contracts
 

Have to say, we are in the same boat as some of the posters above.

We have signed contracts, even the transfer of Deeds contract, but can't get a completion date for love none money, and there is only a chain of three parties !!! :mad:

I have to go to activate my visa start of March, and was hoping that all this would be sorted by then. Thing is, if we cant get a completion date by end of next week, then we have to wait till the end of March............and all the time, the £ goes down against the $ :mad: