Vendors pull out AFTER exchange of contract

A question about : Vendors pull out AFTER exchange of contract

Hi all

Hoping someone can give me some advice on where we stand with something - I'm ruddy livid right now!

In short, we exchanged contracts on a house 4 weeks ago. The vendors wanted a long period until completion to arrange their move. Completion was tomorrow. Today we had a call from the solicitors saying the vendors have pulled out with no reason given. Needless to say we are gobsmacked, we were picking up the keys tomorrow!

The agents suggested that money may be a factor for them and perhaps we should give them more in order to complete. Needless to say we've turned that suggestion down flat.

The question is, where do we stand? Obviously we'll get the deposit back, but we're out solicitors' fees, survey and removal costs since the removal was booked for tomorrow! From our side of things, our current house is due to be rented out in a few weeks (thank God we weren't in a chain!).

Our estate agent has never had someone pull out after exchange of contracts and is at a loss on what to do really. Anyone any experience of this? Where do we stand legally, are they contractually obliged to go ahead now, or will we have to sue to get costs back...what about compensation? The move was half-way down the country and involved one of us changing job...now we're set back for lord knows how long.

Any advice/experience appreciated.

Best answers:

• With all my years in the business and having dealt with 1,000's of transactions I have never had a vendor pull out so not really sure. You need to be on the phone to your solicitor first thing in the morning.
  You may find your conveyancing solicitor contact not the right person and may get referred to a contract law specialist in the practice if big or they may even suggest another practice.
  So sorry hear about it - unheard of before so not sure what else to suggest.
• Speak to your solicitor tomorrow. My understanding (I'm not a solicitor) is that you'd be in a position to sue the vendor.
  I wouldn't agree anything with estate agent or vendor until you've discussed it with your solicitor.
• Its a breach of contract. You will have paid a deposit on exchange of contracts which if they dont return it you could sue them for.
• There was a similar thread here:
  https://forums.moneysavingexpert.com/...tml?p=18606499
  The general consensus is that you can force through the sale using the courts and sue them for all the extra costs!! Problem is that could be expensive if your vendors don't have the cash to pay you the money they owe you and finacially it may make more sense to get your deposit back and walk away.
• No I've never heard of this happening either - it's absolutely unbelievable to me and obviously has caused us large costs and total upheaval to our lives. Leaving it less than 24 hours before completion to pull out is totally beyond my comprehension. The way I feel at the moment it's all I can do not to drive down there, hammer on the door and find out what the bleep they're playing at! If we had been selling and in a chain, we'd be looking at being homeless tomorrow!!
  I'm even more shocked that the estate agent should suggest throwing money at the problem - why on earth would we give lump sums to people who are breaking a legally binding contract to sell? I honestly think they don't know what to suggest and are grasping at straws.
  I guess we'll see what a contract lawyer says
• Their solicitor should be advising them that they will incur costs by doing this and could still be forced by the court to honour the contract.
  Are you 100% sure that you have exchanged? People sometimes think that signing the contract and giving the deposit to your solicitors means you have exchanged. You have only really exchanged when the solicitor notifies you that you have.
• From reading another thread on this site, it suggests you can force them to honour the contract and move out. This is way more serious a matter than them paying back your deposit and paying a few solicitors fees.
  (I can't link to the thread as I'm new!)
• What a shocker .
  We are supposed to be completing tomorrow and the thought of it all being taken away knocks me for six! Keep us updated with what your solicitor advises. I can't imagine these vendors will go unpunished!
• Over 35 yrs ago son of work colleague had same thing happen to him. Long time ago, I know, but from memory it took at least 2 years to arrive at satisfactory outcome. Vendor had to sell him house at the original agreed price. As house prices had increased by 25 or 50% (can't remember which) in the 2 years or so, vendor lost out big time.
  However as colleague's son was unsure of how friendly neighbours would be, as no doubt vendor had painted picture of being innocent victim, he sold house on.
• It happened to someone we know whose sellers wanted to pull out between exchange and completion on a sale of Ј450,000. They settled to our friends before completion on a deal of Ј60,000 plus the deposit of Ј 45,000 back.. All in all our friends were very happy, as house prices continued to plummet and they managed to buy a better place with an extra 60k off the mortgage This only happened late last year..
  They didn't find out why they wanted to pull out, only that they were desperate to..
  The friends solicitors had never heard of it before either. I am sure, maybe wrong, but the solicitor said if they pulled out before completion without agreeing to pay the monies then they could be sued for "consequential losses", so in conjuction with the sellers solicitors the others paid the money the day before completion was due to happen..
• Good point, gauly, so OP should perhaps consider claiming for consequential loss, if he decides to sue for completion of sale.
• Get on the phone to your Solicitor first thing in the morning. The Vendors are in breach of contract and at the very least you will get your deposit and any costs back but your Solicitor has to be very clear on this.
  Awful situation.........in 16 years of being an EA this has never happened to me.
  Irrelevant to you really but the Vendors will be liable to pay their EA fees too as they have exhanged and fees are due after exchange of contracts.
  Silly silly people!
• Yikes, do keep us up to date with what happens! As someone else who is between exchange and completion I wish I hadn't looked at this thread... We've given notice on our rented house so we really would be homeless - with two small children and businesses to run that doesn't bear thinking about
  Good luck, I really hope you somehow manage to sort things out and complete tomorrow as planned.
• I'm so sorry to hear this - and as shocked as everyone else.
  You should be able to claim for your deposit, your costs, and any immediate costs of having to rent, deal with your property, and storage of your things. One reason people *don't* pull out after exchange is because they will incur TENS OF THOUSANDS of pounds to do so.
  I'm not sure they've been advised properly, or that the message has been passed onto you correctly, or that it can really be a money issue as this is going to cost them big time.
  Perhaps you'll find out tomorrow that there's a misunderstanding / pushing it for more money and it will all go through after all.
  All the best - and please let us know what happens.
  Cheers
  KiKi