• Delayed Completion

    By Guest on 27th Jan 2014

    what are the issues to consider in a delay of 10 month between exchange and completion for a cash buyer

  • 2 Answers

    By Guest on 27/01/2014


    Thank you for your question. On exchange of contracts the purchaser acquires a beneficial interest in the property. To protect that interest, a unilateral notice (if the title is registered) or a C(iv) land charge (if the title is unregistered) should be registered against the title. This prevents the seller or anyone standing in the shoes of the seller from selling the property to someone else in the interim period because it puts potential purchasers on notice of you interest.

    Unless this is a new build property which is still under construction then the standard conditions of sale say that the buyer is responsible for the property between exchange and completion. This is a fairly onerous obligation for such a long period and if you are the buyer you might want to consider varying this so that the seller is responsible. It most contracts for new build plots being purchased from major developers this variation is included.

    Again, if the property is not a new build which is covered by an NHBC guarantee (in which case the deposit will be insured) you should ensure that the deposit is held by the seller's solicitor as stakeholder. This means it cannot be paid over to the seller until completion. This is normally the case but make sure the seller does not attempt to vary it so that the deposit is held as agents (in which case the seller can receive and spend the deposit prior to completion).

    Once contracts are exchanged you are unconditionally obliged to complete on the completion date so you will need to be satisfied that your personal circumstances will not change in the 10 months so as t place you in a position of being unable to complete the purchase.

    Best regards


  • By Guest on 26/07/2014

    There are no great issues. You should however consider registering a unilateral notice against the seller's title to ensure it isn't sold to someone else. Make sure the deposit is held by the seller's solicitor as stakeholder and that you insure the property from exchange unless, in both respects, the seller is a large house builder

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