• Insufficient Funds To Complete

    By Guest on 10th Jul 2014

    We have exchanged contracts, but circumstances have arisen whereby we may not now have sufficient funds to complete on the agreed completion date.
    Would we need to pay interest on the outstanding sum?
    Could the seller take our deposit and cancel the sale, claiming we had broken the contract?

  • 1 Answers

    By Guest on 10/07/2014


    On the completion date your seller can serve a "notice to complete" , compelling you to complete within 10 working days (or less if this period has been varied in the special conditions of the contract. If you fail then he can rescind the contract and keep your deposit. He can also see you for any loss he suffers as a result of the failure to complete. Even if you do complete within the notice period he can sue you for any loss suffered as a result of your failure to complete on time. He does not have to rescind the contract.
    Whether he does or not you will be liable for interest at the contract rate, usually 4% above the Bank of England base rate so currently 4.5%. So you take the purchase price less the deposit, divide by 100, multiply by 4.5, divide by 365 (days in a year) and this gives the daily rate of interest payable.

    I hope this helps and good luck.


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