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