68 thoughts on “Delayed completion? That’s going to cost me a fortune!”
Hi,
I am due to complete the purchase of a property. All the funds for completion are already in my solicitor’s account save for a portion of the stamp duty amount which is delayed (Funds coming from sale of stocks and my broker taking more time than expected to settle cash in my account). It is unlikely the funds for the portion of the stamp duty will clear on time for completion but the rest of the money is more than enough to cover the amount due to the seller and the solicitor’s fees. Stamp duty is due within 14 days post completion.
Now my solicitor is saying they are unable to complete on my behalf until I wire the full stamp duty amount. Which I don’t understand and the seller’s solicitor does not understand either as the funds for completion are already there
Question is: can I force my solicitor to complete? I offered to give whatever binding undertakings I can to insure them that stamp duty money will be paid to them as soon as possible
It is an unusual situation and probably depends on the terms of the retainer (the contractual agreement) with your solicitor.
In theory, as it is your tax liability, we could envisage a situation where you could instruct your solicitor to complete and you deal with the tax liability yourself.
A solicitor is entitled to protect themselves and can refuse to follow instructions sometimes, so it may be the case that if you provided your solicitor with assurances that you will indemnify them from any and all consequences of them not paying the stamp duty, they might be prepared to proceed.
We are sorry that we do not really have an answer to this question.
Hi I am a buyer. I purchased a house in modern auction which was based on 56 day’s completion contract. After 9 months the seller (the house belongs to a company) couldn’t provide the documents to the solicitor that they have the right to sell the house. We paid 10,000 pounds fee and also our mortgage is about to expire and we can’t get same offer again as interest rates is rising. I am literally homeless nearly 5 months. Can I claim compensation?
The law of damages is compensatory in nature. It aims to put the aggrieved party in the position that they would have been in had the wrong not happened. However, there are limitations imposed on what a court can order. If the loss is considered too remote (i.e. they could not be reasonably foreseen) then damages would not be awarded for that. In context and in particular, unless it was known to a seller that the buyer would be incurring temporary accommodation costs if the transaction did not proceed, then there is a question about whether such costs would be recoverable.
However, clearly deposits and arguably sums incurred pursuant to the contract are likely to be recoverable. If someone is selling a property, we consider that there is an implied representation that they have the right to do so.
Further, whilst the seller is not under an obligation to provide any particular information about a property to a buyer, there is some newer case law which suggests that a seller is obliged to provide information in relation to title defects.
You may therefore have a basis of claim in misrepresentation or breach of contract (depending on whether or not a contract has been entered into). Do feel free to get in touch if you would like to explore the matter in more detail.
Hi There I reserved a property in 2021, with completion being that of Spring 2022, dates have kept on changing being no fault on to me though that of the developer. I have had 3 mortgage offers expire over the course of time and each time I have to source a new deal due to interest rate. In January 2023, i was told completion will be April, which kept moving each month and until to date we have not completed. The mortgage offers i secured in January has now expired and am having to secure a new deal that will cost me £8000 more over the two-year fixed period. I had asked the developer for a new selling price to be factored in and reduced to cover me that £8k and they have down right refused. Stating the delays has caused the project a loss. I had served notice to my landlord and now living in a serviced apartment and all belongings in storage – they have not communicated any completion date – even though we are almost complete awaiting certificates. Contracts have not been exchanged, would i be entitled to some form of compensation or them covering the temp accommodation
When purchasing off-plan property it is often the case that a developer will include a clause enabling them to complete at a point in the future once the building is substantially built and ready to be lived in, but subject to snagging issues being addressed. Your comment therefore relates to a purely contractual argument over the extent to which there is an obligation on the developer to complete at any particular point in time. We would therefore need to consider the terms and conditions in a lot of detail.
If you would like to instruct this firm to look into the matter for you, please do feel free to get in touch.
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Hi,
I am due to complete the purchase of a property. All the funds for completion are already in my solicitor’s account save for a portion of the stamp duty amount which is delayed (Funds coming from sale of stocks and my broker taking more time than expected to settle cash in my account). It is unlikely the funds for the portion of the stamp duty will clear on time for completion but the rest of the money is more than enough to cover the amount due to the seller and the solicitor’s fees.
Stamp duty is due within 14 days post completion.
Now my solicitor is saying they are unable to complete on my behalf until I wire the full stamp duty amount. Which I don’t understand and the seller’s solicitor does not understand either as the funds for completion are already there
Question is: can I force my solicitor to complete? I offered to give whatever binding undertakings I can to insure them that stamp duty money will be paid to them as soon as possible
Thank you
Thank you for your comment.
It is an unusual situation and probably depends on the terms of the retainer (the contractual agreement) with your solicitor.
In theory, as it is your tax liability, we could envisage a situation where you could instruct your solicitor to complete and you deal with the tax liability yourself.
A solicitor is entitled to protect themselves and can refuse to follow instructions sometimes, so it may be the case that if you provided your solicitor with assurances that you will indemnify them from any and all consequences of them not paying the stamp duty, they might be prepared to proceed.
We are sorry that we do not really have an answer to this question.
Hi
I am a buyer. I purchased a house in modern auction which was based on 56 day’s completion contract. After 9 months the seller (the house belongs to a company) couldn’t provide the documents to the solicitor that they have the right to sell the house. We paid 10,000 pounds fee and also our mortgage is about to expire and we can’t get same offer again as interest rates is rising. I am literally homeless nearly 5 months. Can I claim compensation?
Thank you for your comment.
The law of damages is compensatory in nature. It aims to put the aggrieved party in the position that they would have been in had the wrong not happened. However, there are limitations imposed on what a court can order. If the loss is considered too remote (i.e. they could not be reasonably foreseen) then damages would not be awarded for that. In context and in particular, unless it was known to a seller that the buyer would be incurring temporary accommodation costs if the transaction did not proceed, then there is a question about whether such costs would be recoverable.
However, clearly deposits and arguably sums incurred pursuant to the contract are likely to be recoverable. If someone is selling a property, we consider that there is an implied representation that they have the right to do so.
Further, whilst the seller is not under an obligation to provide any particular information about a property to a buyer, there is some newer case law which suggests that a seller is obliged to provide information in relation to title defects.
You may therefore have a basis of claim in misrepresentation or breach of contract (depending on whether or not a contract has been entered into). Do feel free to get in touch if you would like to explore the matter in more detail.
Hi There
I reserved a property in 2021, with completion being that of Spring 2022, dates have kept on changing being no fault on to me though that of the developer. I have had 3 mortgage offers expire over the course of time and each time I have to source a new deal due to interest rate. In January 2023, i was told completion will be April, which kept moving each month and until to date we have not completed.
The mortgage offers i secured in January has now expired and am having to secure a new deal that will cost me £8000 more over the two-year fixed period. I had asked the developer for a new selling price to be factored in and reduced to cover me that £8k and they have down right refused. Stating the delays has caused the project a loss. I had served notice to my landlord and now living in a serviced apartment and all belongings in storage – they have not communicated any completion date – even though we are almost complete awaiting certificates. Contracts have not been exchanged, would i be entitled to some form of compensation or them covering the temp accommodation
Thank you for your comment.
When purchasing off-plan property it is often the case that a developer will include a clause enabling them to complete at a point in the future once the building is substantially built and ready to be lived in, but subject to snagging issues being addressed. Your comment therefore relates to a purely contractual argument over the extent to which there is an obligation on the developer to complete at any particular point in time. We would therefore need to consider the terms and conditions in a lot of detail.
If you would like to instruct this firm to look into the matter for you, please do feel free to get in touch.