68 thoughts on “Delayed completion? That’s going to cost me a fortune!”
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?
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.
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??
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.
i was a bottom of the chain buyer, and out sellers were unable to complete on the date agreed. this was due to being unable to provide a signed deed of amendment for a leasehold property. my solicitor served a notice to complete, and we completed 2 working days later, and we had to pay out additional removal costs. we had been ina rented property which we had to vacate on completion day and were left unsure if we had anywhere to live! is there any point pursuing our vendors for the additional costs we incurred?
Whether or not you want to pursue the vendors is of course a decision for you. It also depends on the terms of the contract you agreed.
The most recent iteration of the Standard Conditions of Sale (Fifth Edition – 2018 Revision) says:
“7.2.1 If there is default by either or both of the parties in performing their obligations under the contract and completion is delayed, the party whose total period of default is the greater is to pay compensation to the other party.
7.2.2 Compensation is calculated at the contract rate [the contract rate is the agreed interest rate] on an amount equal to the purchase price, less (where the buyer is the paying party) any deposit paid, for the period by which the paying party’s default exceeds that of the receiving party, or , if shorter, the period between completion date and actual completion.
7.2.3 Any claim for loss resulting from delayed completion is to be reduced by any compensation paid under this contract.”
Put another way, yes, if it can be said that your losses arose as a reasonably foreseeable loss from the breach of contract, they can be claimed. However, any damages claimed need to be reduced by the amount of compensation (interest) claimed under the contract. In effect, you can claim the greater of either the damages or the interest under the compensation clause in the contract, but not both.
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.
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.
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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?
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.
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??
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.
i was a bottom of the chain buyer, and out sellers were unable to complete on the date agreed. this was due to being unable to provide a signed deed of amendment for a leasehold property. my solicitor served a notice to complete, and
we completed 2 working days later, and we had to pay out additional removal costs.
we had been ina rented property which we had to vacate on completion day and were left unsure if we had anywhere to live!
is there any point pursuing our vendors for the additional costs we incurred?
Whether or not you want to pursue the vendors is of course a decision for you. It also depends on the terms of the contract you agreed.
The most recent iteration of the Standard Conditions of Sale (Fifth Edition – 2018 Revision) says:
“7.2.1 If there is default by either or both of the parties in performing their obligations under the contract and completion is delayed, the party whose total period of default is the greater is to pay compensation to the other party.
7.2.2 Compensation is calculated at the contract rate [the contract rate is the agreed interest rate] on an amount equal to the purchase price, less (where the buyer is the paying party) any deposit paid, for the period by which the paying party’s default exceeds that of the receiving party, or , if shorter, the period between completion date and actual completion.
7.2.3 Any claim for loss resulting from delayed completion is to be reduced by any compensation paid under this contract.”
Put another way, yes, if it can be said that your losses arose as a reasonably foreseeable loss from the breach of contract, they can be claimed. However, any damages claimed need to be reduced by the amount of compensation (interest) claimed under the contract. In effect, you can claim the greater of either the damages or the interest under the compensation clause in the contract, but not both.
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.
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.