Sadly, with the complexities of life and property transactions, and the fact that there is often a chain involved when buying and selling properties, one small hiccup can have consequences for everyone in that chain.

  • It could be that funds were not received from the mortgage provider in time.
  • It could be that a buyer or seller was unable to action something as quickly as may otherwise have been envisaged.
  • It may be as something as seemingly innocuous as a removal van turning up late to clear items from the property to enable vacant possession to be given on time.
  • It could be something as outrageous as a buyer demanding a discount to complete after exchange of contracts (yes, this has happened!)

Whatever the cause, by the time of exchange of contracts, a buyer and a seller will have agreed a time and day by when funds need to be transferred to complete the purchase. A failure to comply with that contractual term is a breach of contract.

What is the effect of this delay in completion?

This means, for example, a buyer towards the bottom of a chain who has remitted funds to their solicitor an hour too late, cannot complete until later than envisaged. The next person up the chain cannot complete on their purchase because they need the funds from the person below them in the chain who is buying their property in order complete on their purchase, and so on.

By way of example:

Ms Scarlett is buying Professor Plum’s property. Ms Scarlett remits funds to Professor Plum late.

Professor Plum needs those funds from Ms Scarlett to purchase a property from Reverend Green and cannot complete until he has them. He then delays in completing his purchase with Reverend Green.

Because Reverend Green needs the money from the sale of his property to Professor Plum, he cannot complete on his purchase of the property from Dr Black.

This will continue right up the chain and the losses that people incur can include additional storage costs or moving costs and hotel and accommodation costs, for example. However, it does not end here.

Because of the legal principle of privity of contract, only the parties to a contract have the right to pursue each other. This means Dr Black cannot seek her losses from Ms Scarlett. She has to pursue Reverend Green, because they have a contract together.

Reverend Green would then have to include the claim against him in addition to his actual losses, such as additional storage charges, in a claim against Professor Plum. Professor Plum would then have to include Reverend Green and Dr Black’s claims against him in his claim against Ms Scarlett, who was the person who caused the delay all the way up the chain.

What can be claimed?

Most property transactions take place pursuant to standard terms and conditions. We have focussed on the standard residential, as opposed to commercial, conditions of sale.

Under the standard conditions of sale, an aggrieved seller is entitled to claim interest at the rate specified in the contract on the purchase price, less any deposit paid, until completion takes place.

If that compensation is greater than the actual loss suffered (e.g. the interest is greater than the additional storage costs and any claim against them by their seller) then this is the most that can be claimed.

If the compensation is less than the actual loss suffered (e.g. the interest is less than additional storage costs and a claim being pursued against them by their seller) then the balance can be pursued.

It’s all a bit complicated, isn’t it?

Solicitors don’t make the law, they simply seek to apply it to the facts of any case. The reason why the principle of privity of contract exists is because the law has developed to say that, except in certain and very limited circumstances, only the parties to a contract should be allowed to enforce their rights or be pursued by the other contracting party for failing to perform them.

Sadly it does get a little fiddly, and what happens in these circumstances depends on a number of facts.

So what do I do if there has been a delayed completion?

There are some practical considerations to take account of but they will depend on the circumstances of any case.

For example, some parties may be willing to simply accept the loss, as they do not want the aggravation of pursuing it. Also, where you are in the chain may make a difference to what you do. The lower down the chain you are, the greater the potential that the claim against you would be larger.

If you are the buyer at the bottom of the chain (like Ms Scarlett) who, directly or indirectly caused the delay, you are probably best placed to agree a settlement with your seller (in our example, Professor Plum) as soon as possible. If the terms of that agreement are sufficient to do so (and careful wording should be considered) then it may be possible to exclude all future claims.

This would mean that if the buyer at the bottom of the chain (Ms Scarlett) settles the claim with the person above them (Professor Plum), then they cannot be pursued further. If the person at the top of the chain (Dr Black) has not yet put his or her claim to their buyer (Reverend Green), then it may be some time before it works its way down the chain and it would stop at the person above you, because you have contractually agreed with them not to be pursued further.

If you are at the top of the chain (like Dr Black), you have the luxury of being able to decide whether or not pursue a claim. For you, the losses may not be particularly high, as you do not have to worry about people above you bringing their claims.

If you are somewhere in the middle of the chain (like Reverend Green or Professor Plum), then the action you take may be dictated by the action taken by the person above you. As the losses tend to grow the further down the chain you are as the claims compound, generally the lower down the chain you are, the greater the risk that someone above you might want to claim their losses.

For all but the person at the top of the chain (Dr Black), agreeing a swift settlement with the person above you is best. This might be difficult, as the person above you might be waiting to see if the person above them intends to make a claim.

How can Cunningtons solicitors help?

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 claiming your legal costs is not an option. We can generally offer fixed fees or fee caps for providing advice and liaising with the parties. Have a look at our Funding Your Claim page.

In terms of important things to remember:

• If it was you that caused the delay (whether this is your fault or not), 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.

30 thoughts on “Delayed completion? That’s going to cost me a fortune!”

  1. I bought a property this year. The exchange took place in January with completion scheduled in April due to chain involving the sellers. This was delayed to July and now September (with further delay possible). My agreement in principle expired and I had to get a new one which now has more interest and also involved paying the mortgage advisor their fees. My solicitor says they cant help and advised me to just wait. Please advise what rights do I have in this case since I have paid the 10% deposit and done everything from my side.

    1. Thank you for contacting Cunningtons. Without reviewing the Contract you have entered into it is not possible for us to give you any specific guidance regarding your situation in this forum.

      You should ask your solicitor to explain the implications of the contract you have entered into and whether you can rescind it as a result of the other parties’ delays.

      We hope you manage to resolve matters to your satisfaction.

  2. HI there
    I am having an unfortunate experience as a buyer because the savings account with all my cash in that said “unlimited withdrawals anytime” suddenly had a daily limit when I tried to take it all out to complete – and they dont do CHAPS (go careful with a Chase savings account!). So I ended up not completing and having to delay a week while i extracted my cash in daily max alowed lots (I have complained to financial ombudsman ongoing). So its nearly the day when I have it all transferred, and can exchange, when my ever helpful (not) solicitor pops up and suddenly says as well paying a £150 “charge” and 4% of outstanding amount above base rate I will also be liable for “claims made by all other members of the chain due to not completing on original date” – this 1. seems a bit over the top? and 2. can they just land this on me a day or 2 before completing, sort of bounce me into it?? I know it was sort of my fault because of the savings account (though definitely mislead) but it’s only a further week’s delay for goodness sake?

    1. Thank you for contacting us with your question. Whilst you should always liaise with your own conveyancing solicitor on such matters, these things are contractually based. If you have entered into the Law Society’s standard contract used on the vast majority of property transactions, then this provides for penalty interest (usually at 4% above base) payable by the defaulting party (you in this instance) if completion is delayed beyond the contractual date. From what you have said you are the party at fault (albeit because your bank has delayed funds) and so under the standard Contract you would be obliged to pay the Seller interest as your solicitor has said. The penalty interest is included in the Contract as an incentive to both parties to complete on time.

      Sometimes the contract includes a provision to also pay the innocent parties’ legal cost for delayed completion, so check this is the case with your solicitor. Your Seller is entitled to call for these sums if they are included in the Contract terms before completing, so we recommend contacting your solicitor to ensure you have paid all contractual sums due to avoid further delays with completion of your purchase.

      We hope this helps.

  3. So I signed all my contracts to move 1st April on 30th March, i paid my deposit on 30th March, cleared that day. I was bottom of the moving chain and my money didn’t get to buyers solicitors until 4.35pm on 1st and the solicitors refused to complete as my seller “has nowhere to go”. The property i am buying is round the corner from my current home and they have moved out. They received my money, why would they not have completed and given me my keys?

    1. Thank you for contacting us, and we are sorry to hear about the problems you are having completing your transaction.

      However, as in our reply to Hayley on March 29th 2022, these questions should be addressed to your current conveyancing solicitor to deal with, as it will depend on what was agreed in your Contract with the Seller. We would not be able to provide legal advice without the full facts and file of papers.

      We do hope you manage to resolve the delays and move to your new home very soon.

  4. Hi, i’m wondering if you could advise whether I have a potential negligence claim against my conveyancer.
    We accepted an offer on our leasehold property March 2021 and finally completed November 2021, missing the stamp duty holiday.
    I have had reassurances in numerous phone calls from the conveyancer that we would complete before the stamp duty holiday ended (Sept 2021).
    My buyers used the same conveyancing firm to represent them. Complete lack of communication between the buyers conveyancer and mine meant that matters that should have been dealt with early in the process were only raised end of August. This generated paperwork with the freeholder of the property which took us to the end of October. I have the evidence that the points in question were raised in April/May 2021 and were clearly not followed up by either conveyancer to resolve them until I complained in August.
    As a result we have had to pay stamp duty, and i’m wondering if I can claim this back as compensation from the conveyancing firm?

    1. Thank you for your comment.

      This firm does undertake professional negligence work and also have a member of staff that is a member of the Professional Negligence Lawyers Association. We cannot, however, provide specific advice on our website, simply general guidance which should not be considered a substitute for this.

      We have had a number of enquiries regarding the missing of the SDLT holiday. Unfortunately, it is not simply a case that the deadline was missed and therefore your solicitors should be liable.

      The broad test applicable in any professional negligence case is whether or not that professional behaved in the same manner as a reasonably competent professional in the same position would have. This means considering the exact factual circumstances and considering whether or not the issue could have been avoided. Whilst with the benefit of hindsight, this can appear a straightforward point, it is not. The professional’s conduct would be considered in context and if it could be said that any reasonably competent professional would have done the same thing in the circumstances, then it is unlikely that there would be a case.

      It would also be necessary to consider the scope and detail of the solicitor’s retainer (this is the contract between a client and their solicitor). This will broadly set out what the solicitor says they will do and may also contain limitation of liability clauses, although often such limitations can be challenged as unfair. You do not state whether or not the reassurances given to you about completing before the end of the SDLT holiday were before or during the transaction, the difference potentially being whether or not it can be said that you relied on such a representation when deciding to instruct the solicitor.

      There are some cases specific to conveyancing solicitors which could assist. For example, if the matter in question is something which a practitioner’s guide would recommend being addressed more promptly than was the case, then there may well be a basis of claim. There is specific case law on using practitioner’s guides for reference as to what the expectations of a reasonably competent conveyancing solicitor are.

      Depending on your solicitor’s accreditations, it may be the case that the Law Society Conveyancing Protocol was adopted. If this was departed from, this could be evidence of negligence.

      If you would like to consider the matter in more detail, please do get in touch.

  5. I had a completion date of 28th March. Got phone call from my solicitor on that day at half 12 saying still hadn’t received contract back from sellers solicitors and was struggling to get a hold of them. By half 4 on completion day, my solicitor went ahead and transferred all the funds to the sellers solicitors but has said she hopes she will hear back the next day to complete. That’s a day off work, moving van rental all wasted. I was told when I signed contract if I delayed i would be liable to pay compensation- surely the seller is to??

    1. Thank you for contacting us, and we are sorry to hear you are experiencing problems in completing your transaction.

      However these questions should be addressed to your current conveyancing lawyer to deal with, as it will depend what was agreed in your Contract with the Seller, and we would not be able to provide legal advice without the full facts and file of papers.

      We do hope you manage to resolve the delays and move to your new home today.

  6. I was ment to complete my property purchase on the 27th July but did not complete untill 4 days after.

    Around the 24th July I was told by my broker I would have to sign the bottom of the mortgage offers and write down “offer accepted”.
    My solicitor also sent an email telling me I should deal with this matter urgently, which gave me the sense that something wasn’t right, but I could only assume because of the pandemic that the parties involved had a huge backlog of work to deal with.

    By the 25th my solicitor told me that the mortgage provider wasn’t happy with this and I had to sign the actual acceptance the solicitor attached to the email.

    By the 26th I had a response that I was given the wrong acceptance letter for another property I was purchasing, so they resent me the correct one this time and I returned.

    For some reason on the 27th my mortgage provider told me they weren’t happy with the acceptance letter so I resigned it and sent it of on the 27th.

    I was informed on the 31st we had completed and a few weeks later now there is a claim against me for something that I feel was not my fault as in any given situation I did what was asked from me with immaculate time keeping.

    Now I am scared, anxious and distressed as I put all my savings into these properties and will not be able to afford to cough up thousands of pounds out of. No where.

    Is there any advice for a person in my situation that you have, I would be very grateful.

    1. Thank you for your comment. Unfortunately from your comment, we cannot determine what the claim against you is about. With this in mind we cannot provide any general guidance on what can be done about it.

  7. Hi

    We were told our buyers (agreed to sell to in mid April) would break the chain before 30th of June so there would be no risk to complete on the 28th July as we’d requested.

    We needed to move for a job starting in August and children starting a new school hundreds of miles away

    On (approx) 25th June we were told their buyer’s solicitor and mortgage co had just found out there was an increase in ground rent scheduled in 13 years time so our buyers would need to get a deed of variation to fix it.

    Since then we’ve realised our buyer’s buyer’s solicitor keeps asking questions that should have been asked months ago… Eg building insurance costs and fire risk assessments which is delaying. And there’s always just one more thing that could always have been added to the question before.

    As a result we’re having to rent, and are likely to miss the 30th September stamp duty deadline (our vendors had agreed to a family commitment for 3 weeks from next week so missing their deadline before they go and can empty). I know 6500 (for rent and SD) is small fry in the grand scheme of things, but is there anything that can be done about our buyer’s buyer’s solicitor and his/her inability to ask for information in a timely process that has meant our buyers couldn’t break the chain or even complete 2 months after the promised date.

    These seem like really basic questions that weren’t asked at the outset and is costing us a lot of money.

    1. Thank you for your comment. Until exchange of contracts there is no legally enforceable contract in place and not really any basis to claim any losses arising.

      However, as no contract has been agreed you may wish to renegotiate the purchase price to take account of the additional losses that you are incurring.

  8. Hi,
    We had our remortgage completion date set for 1st of August, our new remortgage funds were ready and all paperwork sent and completed ready for 1st of august. However solicitors had to obtain new redemption figure resulting further 6 days delay (at no charge from our previous lender) but without any reason solicitors delegates for additional 6 days resulting 6 day interest charge from previous lender. Are we entitled to claim this back due to no fault of our own or out new morgage leader? Thanks Chris

    1. Thank you for your enquiry.

      Whether or not a solicitor can be held liable for negligence will depend on a large number of factors. In any professional negligence claim, the two most important factors to consider from the outset are the professional’s retainer and what occurred in practice and why; there could be a number of mitigating points to consider. For a professional negligence claim to be successful, it must be shown that the professional had a duty of care to do something and that this duty of care was breached, causing a loss.

      A solicitor’s retainer (sometimes called a client care letter) would normally be sent before or as soon as is reasonably practicable after the initial instruction. This would contain details of what the solicitor agreed to do. If the retainer is silent on things such as time limits for making payments, then whether or not the solicitor can be said to have complied with its duty of care will depend heavily on the circumstances. There is no specific law which states that a 6 day delay is automatically negligent. The relevant standard of care for a solicitor is that of a “reasonably competent solicitor”. Again, there is no statutory definition of this, which means whether or not your solicitor acted as a reasonably competent solicitor would depends on the factual circumstances of the matter and whether or not another solicitor in the same position would have behaved in the same way.

  9. Hi, is it possible for a seller to delay the agreed completion date after we exchanged the contract? so if I am not afraid the seller to pull out the sell, it is better to exchange and completion on the same day? Thanks

    1. Thank you for your comment.

      The arrangements for exchange and completion are contractually agreed on completion, but the parties can, if they both agree, vary this. However, if one party does not wish to do this and wants to complete on the agreed day for completion, they should consider serving a notice to complete. This is a question that you should certainly raise with your conveyancing solicitor, as much would depend on what you want to achieve from the situation.

  10. Hi, I was notified by a voice message from my solicitor on 6th June, that they can confirm the completion date is 23rd June, everything is in place. One day before completion, they told me the buy solicitor is still waiting for the buyer’s mortgage company confirmation, so need to be delayed. Then I found out they haven’t even exchange contract yet!( I assume they did as they confirmed the completion date already without any other update, so I assume everything went well). They only exchanged contract on 25th June and delayed the completion to 29th June, which is very risky to meet the stamp duty holiday deadline.

    Can I ask my solicitor for compensation? I lost £125 for removal company cancellation fee/ deposit, and the delaying caused us inconvenience in work and life, as I have switched broadband services on 23rd, and had to book days off as cannot work from home without internet. All things have already packed so not convenient to live.

    1. Thank you for your comment.

      From what you have described, this appears to be a possible negligence claim but much will turn on the exact facts of the matter. Much will also depend on the content of the voicemail message left for you, and whether or not it was explained that completion would definitely be taking place on 23rd June 2021 or if this message was caveated or qualified in some way. For example, a clear contrast in position can be drawn if it was expressly stated in the message that you should make arrangements to complete and vacate by 23rd June 2021, as opposed to a message which suggested that this was only a proposed date and/or that confirmation might be provided later or your instructions required.

      The starting point for any professional negligence claim is to consider the retainer (contract) between the professional and person instructing them. In respect of a solicitor, it is normal for an initial client care letter and terms and conditions to be issued at the start of the relationship that explains the scope of the solicitor’s instructions and what they are going to do. Whether or not your solicitor has acted in your best interests and/or done what they were supposed to do depends on what they have explained to you in correspondence and what they actually did. For example, if you have simply instructed your solicitors to exchange and complete “as soon as possible” without specifying particular dates, then arguably, they have done what you have asked. It should also be remembered that your solicitors cannot force a seller to exchange contracts. If you explained to your solicitor that you wanted a contractually agreed completion date of 23rd June 2021 and they agreed an alternative date without instructions, then clearly your instructions have not been followed. It also strikes us that if your solicitors were informed that exchange and completion would be delayed at extremely short notice, they would not be able to communicate this to you until shortly after this date.

      Although considerably more complex, the basic position is that a professional can only be liable to their client for the losses that they cause. This normally involves asking what the position would be if the “correct” advice/steps had been given/taken. You seem to be suggesting that the solicitors should have exchanged contracts with a completion date of 23rd June 2021 sooner. As mentioned, this will depend on what your solicitors said they were going to do and what you asked/agreed with them to do.

  11. I purchased my property jan 2013 ,my deeds showed the boundaries where correct Iput my house up for sale march 2020 the sale has been going through since july 15th 2020 terms and conditions the sale should of gone through end of november, my solicitor informed me mid november the land at front of property does not belong to me ,my solicitor failedto find to find this Iam still waiting for the sale to go through .The same solicitor acted for me during the purchase and intended sale of my property,can i sue my solicitor. Mr S. Walker.

    1. Thank you for your comment. Normally this would be a type of work we could deal with, however, I note that the original purchase in which the solicitor made the mistake you are seeking to claim over was in 2013. The limitation period for professional negligence claims is 6 years from the date of the negligent act, or three years from the date of knowledge of the negligent act, so my concern is that this may already be statute barred. Time begins to run in the latter case from when you first knew, or could reasonably have known, about the act or omission giving rise to the negligence claim.

      If that turns out not to be the case, then there may be a case there but we would have to investigate fully the circumstances in the light of the current conveyancing file you have with this solicitor and the file from the previous transaction in order to determine the prospects of success.

  12. Hi,
    I have a slightly different question…
    Are any compensations paid by the developer for new build taxable? and whether this is regarded as income tax or CGT?

    Thanks

    1. Thank you for your comment. Unfortunately this is not something that we would be able to provide even general guidance on. As solicitors we do not give tax advice. We would recommend that anyone that wanted tax advice should seek the input of a suitably qualified accountant.

  13. I exchanged contracts and a completion date was set for the following week – the evening before completion my solicitor called me to say she had received the mortgage funds but had received a phone call from the sellers solicitors advising completion would not be taking place as they had omitted to get the necessary legal paperwork for the sellers Help To Buy redemption and so were not legally able to complete – my solicitors served notice and i have been told the sellers solicitors have 2 weeks to complete before they are in breach of contract – surely they are already in breach as exchange occurred with a set completion date. am i entitled to claim any costs? my solicitors have kept the mortgage funds as waiting for the sellers solicitor to be in a position to confirm when we can complete – there is also a chain of 5

    1. Thank you for your enquiry, however this should be addressed to your current conveyancing solicitor who has the benefit of the Contract in front of them and can properly advise you of your remedies against the Seller.

  14. I’m the cash buyer. We had the survey and the valuations and instructions etc a month ago on Feb 3. We were hoping to close on March 6. The sellers have already moved out. The sellers solicitors have been very slow taking 2 weeks in responses and in inquiries and hadn’t started the paperwork until mid Feb and we instructed our current landlord that we would be moving out. What can I do? What should I expect? We paid 25,000 over asking, we weren’t the highest bidder according to the estate agent (no proof of other bidder though) but the house was never registered.

    1. Thank you for your enquiry. It sounds as though you already have your own conveyancing solicitor, and so you should direct your questions to your own solicitor initially. If there is no binding contract between the parties as you have not yet exchanged, then there is no basis for a claim against the seller. We do recommend you speak to your own solicitor as soon as possible to weigh up your options.

  15. Hi

    The buyers solicitors are delaying the completion, they have been very slow in responses, which has cost me a loss of over 2 k on interest charges on a freehold vacant property. There is no chain involved. Can I claim compensation for this loss.

    1. Thank you for your comment. You should consult with your current solicitors with respect to the service of a notice to complete, so far as exchange has taken place. They should also advise you on the position with respect to remedies available under the contract of sale.

      If exchange has not taken place, then it is very unlikely that there is any basis to claim your losses from the buyer.

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