When you’re buying a property, exchanging contracts should be a straightforward process, but unfortunately, it isn’t always the case. Delays can occur for a number of reasons, leaving buyers feeling helpless and uncertain. If you’re in a situation where the seller is delaying contracts, it can be a tricky and stressful situation to navigate. But there are certain steps you can take to make sure that the process is as smooth and stress-free as possible. This guide will explain what to do when the seller is delaying the exchange of contracts, so you can be sure to get the best outcome for your property purchase.
When you’re buying a property, the contracts should be exchanged between the buyer and the seller as soon as both parties are satisfied with the terms of the transaction. If the exchange of contracts takes longer than a few months, it might be flagged by a solicitor or conveyancing firm as a delayed exchange of contracts. When the exchange of contracts is delayed, this can be a source of frustration and stress for both parties. However, knowing what to do and when to do it can help you to navigate the situation with as little friction as possible.
A delayed exchange of contracts is when the exchange of contracts isn’t done by the due date. Generally, a solicitor will be involved to provide advice, and if the contract isn’t exchanged within a few months of the exchange of contracts, this is flagged as a delayed exchange of contracts.
- The buyer falls out with the seller: If you and the seller are having a hard time negotiating the terms of the sale, it’s possible that the exchange of contracts between you will get delayed. If this happens, you have the right to terminate the contract and walk away from the deal without paying a penalty or taking any legal action. - The buyer doesn’t have enough money: If the buyer doesn’t have enough money to purchase the property, then they can’t exchange the contracts and the process of buying the property will be delayed. This might happen because the buyer has been borrowing more than they have been able to repay, or they have been spending more than they have been able to save. If this happens, you will have to wait until the seller has either found a buyer who can pay more than the initial asking price, or the seller accepts an offer that is less than the asking price. - The buyer has a change of heart: If the buyer decides that they don’t want to purchase the property after all, the exchange of contracts can be delayed. This is rare, but it does happen. If the buyer decides that they don’t want to purchase the property, there are two options for the seller: either accept that the deal is off, and walk away from the deal, or try to renegotiate the price.
Whether the seller is delaying the exchange of contracts due to any of the reasons above, there are certain steps you can take to make sure that the process of exchanging contracts is as smooth and stress-free as possible. First and foremost, don’t panic. If you’re in a situation where the exchange of contracts is delayed, try to stay calm and reassure yourself that this is not necessarily a cause for alarm. There are certain steps you can take to make sure the process runs smoothly. If you’ve reached the point where you’re ready to walk away from the deal, it’s important to keep in mind that you want to walk away from the deal with as little legal pressure as possible. This means that you don’t want to do anything that might leave you in a legal position where you’re forced to take legal action against the seller, such as serving a termination notice on the seller. Therefore, it’s important not to make any hasty decisions. First, try to negotiate with the seller with the intention of lowering the price. It’s important not to lower the price so much that the deal falls through, but you do want to lower it enough that you’re able to close the deal at a lower price. If that doesn’t work, try to negotiate a buy-back agreement. This allows you to buy the property back at a lower price after a certain period of time when the deal falls through.
Panicking and making hasty decisions might seem like the best course of action, but in reality, they can leave you in a vulnerable position. These kinds of decisions have the potential to leave you in legal hot water, or with a significantly lower offer on your property than you initially wanted. Therefore, it’s important to hold off on making any hasty decisions until you’ve consulted with a solicitor and verified that the exchange of contracts is actually being delayed. In most cases, the seller simply forgot to exchange contracts with you. It’s important to also keep in mind that there are certain steps you should take during this process that can help you to manage the pressure of a delayed exchange. These include staying calm, not making any hasty decisions, and seeking legal advice as soon as you have verified that the exchange of contracts is being delayed.
What should I do if the seller is delaying the exchange of contracts? First, confirm that the exchange of contracts is actually being delayed. If you’ve reached the point where you’re ready to walk away from the deal, it’s important to keep in mind that you want to walk away from the deal with as little legal pressure as possible. This means that you don’t want to do anything that might leave you in a legal position where you’re forced to take legal action against the seller, such as serving a termination notice on the seller. What happens if the property I’m looking at falls through? If the property you’re looking at falls through, you will have to find another property to purchase. However, it’s important to keep in mind that the process of finding another suitable property might take longer than the original process of purchasing a property.
If the exchange of contracts is being delayed, there are certain alternatives that you might consider as an alternative to exchanging contracts. These include using a third-party exchange of contracts company or using a property exchange agreement. It’s important to note that using a third-party exchange of contracts company isn’t legally binding, so it’s important to keep in mind that you aren’t legally obligated to purchase the property that the seller is offering you. This means that you’re free to walk away from the deal if you don’t feel like you can afford to purchase the property.
If you’ve reached the point where you’re ready to walk away from the deal, it’s important to keep in mind that you want to walk away from the deal with as little legal pressure as possible.
This means that you don’t want to do anything that might leave you in a legal position where you’re forced to take legal action against the seller, such as serving a termination notice on the seller. It’s important to also keep in mind that there are certain steps you should take during this process that can help you to manage the pressure of a delayed exchange. These include staying calm, not making any hasty decisions, and seeking legal advice as soon as you have verified that the exchange of contracts is being delayed. If you’ve reached the point where you’re ready to walk away from the deal, it’s important to keep in mind that you want to walk away from the deal with as little legal pressure as possible. This means that you don’t want to do anything that might leave you in a legal position where you’re forced to take legal action against the seller, such as serving a termination notice on the seller.
