> BUYING & SELLING PROPERTY
TIPS AND ADVICE
When property completion is delayed, it can trigger a cascade of costs and complications through an entire property chain. Understanding your rights and remedies for delayed completion is essential for protecting your finances.
What Is Delayed Completion?
Delayed completion occurs when the buyer and seller have exchanged contracts with an agreed completion date, but the final stage of the property transaction doesn’t happen on the agreed date. This breach of contract can affect everyone in the chain.
Delayed completion means that the legally-binding agreement to complete on a certain date isn’t met, giving rise to potential compensation claims and additional costs.
Common Causes of Delayed Completion
Several factors can cause delayed completion date problems:
- Mortgage lender delays – it could be because mortgage funds didn’t arrive from the mortgage lender on time, or that the mortgage offer expired before completion;
- Buyer or seller issues – or that the defaulting party was unable to action requirements within the working days specified;
- Vacant possession problems – removal vans can arrive late, preventing vacant possession by the agreed date;
- Administrative delays – sometimes conveyancing solicitors are awaiting search results, planning permission, or documentation on lease options;
- Unreasonable demands – in extreme cases, buyers can demand last-minute discounts after the exchange of contracts.
Whatever the cause, once exchange of contracts takes place, both parties are bound by the agreed completion date.
Failure to complete is a breach of contract with specific legal consequences.
How Property Chains Amplify Delayed Completion Problems
The effect of delayed completion date issues multiplies through property chains. One delay at the bottom affects everyone up the chain under the legal principle of privity of contract – only parties directly in contract with each other can pursue claims.
A buyer at the bottom of the chain whose mortgage funds arrive an hour late cannot complete on the specified date. The person above them in the chain cannot complete their own purchase without those funds. This ripples upward, with each person unable to complete because they’re waiting for money from the person below them.
By the time the delay reaches the top of the chain, simple storage costs have potentially expanded into thousands of pounds in claims.
Example: The Property Chain Scenario
Ms Scarlett is buying from Professor Plum, who is buying from Reverend Green, who is buying from Dr Black.
Ms Scarlett‘s mortgage lender releases mortgage funds late, causing delayed completion. She cannot complete her purchase from Professor Plum on the specified date.
Professor Plum needs those funds to complete his related purchase from Reverend Green. Without the purchase price, he causes a delayed completion on his transaction.
Reverend Green cannot complete his purchase from Dr Black without funds from Professor Plum, creating another delayed completion date problem.
Dr Black suffers losses (hotel accommodation, storage costs) but can only claim against Reverend Green due to privity of contract. Reverend Green must include Dr Black‘s claim plus his own losses when claiming against Professor Plum. Professor Plum then claims everything from Ms Scarlett, the original defaulting party.
This is why swift settlement early in the chain is crucial – losses compound as claims work their way down.
What Can Be Claimed in Delayed Completion Cases?
Under standard conditions of sale (the standard terms used in most property transactions in England and Wales), the non-defaulting party can claim:
1 – Contractual Interest
Interest on the outstanding purchase price (less any deposit paid) at the rate specified in your contract. Standard Conditions of Sale set this rate, typically tracking above Bank of England Base Rate. This runs from the missed completion date until completion actually takes place.
Important note: If the contractual interest exceeds your actual losses (for example, the interest is more than your storage costs and claims from above you in the chain), you can only claim the interest amount – it acts as a cap. However, if your actual losses exceed the interest, you can claim the difference as reasonable losses.
2 – Reasonable Losses
If your actual losses are greater than the contractual interest, you can claim the balance. Reasonable losses typically include:
- Storage costs for your belongings;
- Hotel accommodation or temporary housing expenses;
- Removal van cancellation fees and re-booking costs;
- Additional mortgage payments on your current property;
- Claims from other parties in the chain pursuing you; and
- Your legal costs for pursuing the claim.
The key principle: you can recover any losses that were reasonably foreseeable at exchange of contracts.
What You Cannot Claim
“Penalty clauses” are unenforceable under the law of England and Wales. You can only claim compensation for genuine losses, not arbitrary penalties. The contract specifies the financial remedy available.
Your Delayed Completion Strategy: What To Do Based On Your Position
If You’re at the Bottom of the Chain (like Ms Scarlett)
Your priority: Settle quickly with the person above you.
- Agree a swift settlement to avoid claims expanding;
- Ensure settlement wording excludes all future claims.
This prevents the claim reaching you once it works back down the chain. Even if not your fault, taking responsibility for the delay stops it escalating.
If You’re in the Middle of the Chain (like Professor Plum and Reverend Green)
Your priority: Managing claims from both above and below you in the chain.
- Don’t settle too early with your own buyer – wait to see if the person above you claims;
- Your action may be dictated by claims from above you;
- The lower you are in the chain, the greater potential for liability as claims compound.
- Consider practical considerations: sometimes accepting a small loss beats lengthy disputes.
If You’re at the Top of the Chain (like Doctor Black)
Your advantage: You can pursue claims at your leisure.
- There’s no-one above you to claim, so your losses are limited;
- The person below you may be reluctant to pay until they receive funds from their buyer;
- You have the luxury of deciding whether pursuing the claim is worth the effort.
Finding Your Position in the Chain
Use the calculator below to identify where you are in a property chain and get specific advice for your situation:
Did you (or your solicitor) cause the delay in completion?
For example: your mortgage funds arrived late, or you weren’t ready to complete on the agreed date
This calculator provides general guidance only. For specific legal advice about your situation, contact our conveyancing solicitors.
Your Position in the Chain
Your Priority:
What This Means for You:
What Can Hold Up Exchange of Contracts?
Before completion can be delayed, exchange must happen. Several factors commonly delay exchange of contracts:
- Buyer due diligence – the buyer must be satisfied with searches, surveys, and legal documentation;
- Waiting for third parties – waiting for mortgage lender approval, Land Registry searches, or local authority responses;
- Leasehold complications – variations of lease terms or service charge clarification;
- Chain coordination – ensuring all parties in a chain are ready simultaneously; as well as
- Title issues – resolving problems with property ownership documentation.
Completion cannot happen until the buyer is certain they want to proceed and all contractual terms are agreed.
Why Do Solicitors Take So Long To Exchange Contracts?
A conveyancing solicitor’s work involves meticulous checking to protect your interests. The process takes time because:
- Due diligence is extensive – reviewing property title, searches, enquiries, and legal documentation;
- One party delaying delays everyone – in chains, the slowest party sets the pace;
- Third parties control timing – mortgage lenders, local authorities, and Land Registry operate on their own schedules; and
- Legal obligation to be thorough – rushing risks missing critical issues that could cost you thousands.
A good conveyancing solicitor balances speed with proper scrutiny. While delays are frustrating, they often prevent bigger problems later.
What Happens On Remortgage Completion Day?
Remortgage completion is simpler than purchase or sale completion:
- Your conveyancing solicitor undertakes searches and confirms title to your new mortgage lender;
- The mortgage lender releases mortgage funds to your solicitor;
- After paying their legal fees, your solicitor releases any remaining funds to you; then
- Your solicitor registers the new charge at the Land Registry.
The new completion date typically falls within working days of receiving the mortgage offer. Since there’s no chain, remortgage completion rarely faces the same delayed completion risks.
How Cunningtons Can Help With Delayed Completion Claims
We can assist in defending and bringing claims for breach of contract based on delayed completion.
However, much of the time, the value of the claim is comparatively low. This generally means that reclaiming your legal costs is not an option. We can usually offer fixed fees or fee caps for providing advice and liaising with the parties. Have a look at our Funding Your Claim page.
Please feel free to contact us if you would like our help.
It is also crucial to keep your estate agent informed about any potential delays in completion, as they play a key role in facilitating the exchange of contracts and the transfer of keys upon legal completion.
Points to remember
In terms of important things to remember:
• If it was you who caused the delay (whether or not it was your fault), try and settle the matter with the person above you as soon as possible and absolutely conclusively, so no further claims can find their way down the chain to you.
• If you are somewhere in the middle of the chain, don’t settle too early with the person below you. You want to be certain that the person above you is not going to pursue a claim against you before you agree to compromise your right to include their claim against your buyer.
• If you are at the top of the chain, you can pursue your claim at your leisure but be aware that the person below you in the chain is going to be reluctant to pay you your claim until they have received the same sum from their seller.
Contact your local conveyancing solicitors
Find out more about our specialist property solicitors in Braintree, Brighton, Chelmsford, Croydon, Hastings, Hornchurch and Wickford.
Frequently Asked Questions
As you can see, buying and selling property is not always as simple as you think. We’ve tried to address some common questions below, but if you are still unsure please feel free to contact us for an answer.
Can I get compensation for delayed completion?
Yes. It will be a contractual term of the contract as to when completion takes place. It is therefore a breach of contract if it does not. Normally the contract will provide a remedy and say who pays what in the event of a delayed completion. This is normally interest on the sum paid and any reasonable expenses incurred (such as temporary accommodation or subsistence).
Is there a penalty for late completion?
No, there is not a “penalty” for late completion. “Penalty clauses” are a specific thing in law and are generally unenforceable. However, the contract will normally specify a financial remedy for the aggrieved party. If not, a claim for damages based on normal contractual principles relating to a breach of contract would apply. This is that losses which are reasonably foreseeable at the time of exchange of contracts can be claimed.
What happens if completion is delayed by the buyer?
If it is solely the buyer’s fault that there is a delay, normally, the first thing the seller will do is serve a notice to complete. If that notice period expires, it then gives the seller the option to rescind (i.e. withdraw) from the contract and keep the deposit. In addition, the contract will normally say that the seller is entitled to claim their reasonable losses and interest calculated by reference to the purchase price, less any deposit paid until completion takes place or the contract is rescinded.
What happens if completion is delayed by the seller?
If it is solely the seller’s fault that there is a delay, normally, the first thing the buyer will do is serve a notice to complete. If that notice period expires, it then gives the buyer the option to rescind (i.e. withdraw) from the contract and get back the deposit paid with accrued interest. In addition, the contract will normally say that the seller is entitled to claim their reasonable losses and interest calculated by reference to the purchase price, less any deposit paid until completion takes place or the contract is rescinded.
The buyer is delaying exchange of contracts. What can I do?
This will depend on the circumstances. Whilst serving a notice to complete on the seller is generally the first thing that can and probably should be done, it is a fairly unpleasant thing to do and can cause contention. Asking you solicitor to speak to the buyer’s solicitors and find out what is happening and the cause of the delay is worthwhile doing, as it might influence your decision.
Why is my solicitor not releasing funds after my house sale?
The basic position is that a solicitor should release funds to their client as soon as possible but there could be any number of reasons for not doing so. For example, the proceeds of sale might belong to the estate of a deceased seller, and the estate is yet to be finalised and distributed. It might be that there is a dispute between co-owners about the funds and who should get what, in which case the solicitor might have received conflicting instructions as to which of their clients receive what proportion of the proceeds of sale. It could be that a retention of some sort was agreed for something. This is not uncommon in leasehold property where service and other charges by the landlord are not certain at the point of completion, so the parties might agree that a certain sum be held back in one of the solicitor’s account until that figure is clear, at which point it can be sent to the seller after deduction of any such charges.
What can hold up the exchange of contracts?
Lots of things can hold up the exchange of contracts. The basic position is that the buyer will want to be satisfied as to what they are buying, so they will tend to ask questions and make enquiries of the seller. These do take time to respond to. The parties might be relying on third parties for something. For example, a mortgage lender to confirm that they are prepared to proceed further, the results of a formal search about the property which has yet to be sent back to the buyer, a variation of a particular lease term in a leasehold transaction. There is sadly no shortage of things that can happen and whilst the seller will generally be keen to proceed, especially if they have a linked transaction, the buyer will not exchange contracts until they are certain that they want to buy the property and are able to proceed.
What happens on remortgage completion day?
The solicitor would confirm to their mortgage lender client that the property has a good title to lend against by sending what is called a certificate of title (although this generally happens in advance of completion), the funds will then be remitted to the solicitor, who will also generally lodge an application at the Land Registry to register a charge against the title to the property and then the funds would be remitted to the solicitor’s client after payment of their legal charges.
Will my solicitor tell me when we exchange contracts?
Absolutely. In fact it is important to agree dates for exchange of contracts and completion with all parties, as a lot of the time, they are in a chain and will have linked transactions. For example, a buyer might also be selling a property in order to fund their purchase of your property, and you might be selling your property in order to purchase a new one.
Why do solicitors take so long to exchange contracts?
This is a subjective question but ultimately, exchange of contracts will only take place once the buyer is satisfied that they are happy to proceed and a seller is ready to do so.
My completion was due on a Friday, but the bottom of the chain did not request their funds in time. The funds came through at 4.50pm when the solicitors were closed and it was then too late to complete. The funds were then transferred late on the following Monday incurring a 5 day delay. I have had to pay out a second removal company and storage of my possessions, plus interest on my mortgage. Can I claim these costs and what is the best way?
Thank you for contacting Cunningtons and we are sorry to hear of your problems with delayed completion. Whilst your own conveyancing solicitor is best placed to advise on the specific Contract you have entered into, if it is based upon the Law Society’s Standard Terms & Conditions, then this provides for penalty interest in the event of late completion. Other expenses you have incurred as a result of late completion usually can be recovered from your buyer if they are at fault, but it will usually mean taking action via the courts (and depending on the size of any claim that may be the small claims court) to recover such sums.
I am moving home and I paid for the removal company. 16 hours to the move, I receive an email to say my buyer is not in funds and there will be a delay. I have had to cancel the movers and they have fined me for this. 2k. Who is liable for this cost?
Thank you for contacting Cunningtons and we’re sorry to hear you have had problems with your completion.
The position as to who is liable for those costs will depend on whether or not you have exchanged legally binding contracts for the sale of your property with the buyer. Your conveyancing solicitor is best placed to advise in this regard, but if you have exchanged Contracts then you may have a claim to recover these costs from the defaulting buyer. If you have not exchanged Contracts and were due to simultaneously exchange and complete on the same day, then unfortunately your buyer would not be responsible for those costs.
That does not mean, however, that you could not then renegotiate the agreement you have with the buyer if they have caused you unexpected costs. Provided there’s no legally binding exchange of Contracts then either party can withdraw, or seek to change the agreed price right up to the point of exchange.
We are currently in a position of selling our house due to the increase in mortgage rates pushing our mortgage up by £900 a month. Making it unafordable The sale was agreed back in September. The buyer is in rented accommodation and we are moving in with family. So there is no long change.
The buyers solicitor keeps no responding to estate agents or buyer. They claimed no to have received inquiries twice when all in the email chain had can see they had been sent. When they do respond they keep promising to send out contract to exchange the next day but its been 2 weeks and no response and no contracts
We stated this need to be completed by middle of December and the buyer agreed ,but we are still waiting and the buyer still hasn’t received contracts.
This has now cost us the seller, 2 months of increased mortgage, plus house hold bills. Leaving us in financial difficulty.
What are our options?
Thank you for your comment.
There is little you can do except change your buyer, or encourage your buyer to change their solicitor if they’re not happy with them. You don’t have any legal recourse against a buyer for not exchanging, or against their solicitor. Your buyer could raise a complaint against their solicitors to see if that prompts them into action, but there’s no monetary claim you can make. The only other option would be to seek to agree a higher price with the buyer to take account of the extra you are now paying out for the property, but you’d need to speak to your estate agent about whether the buyer is likely to agree, or if they can find a new buyer at a higher price.