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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3774
Experience:  Solicitors 2 years plus PQE
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We are due to complete a sale and purchase on our house on

Resolved Question:

We are due to complete a sale and purchase on our house on Friday. The house we are selling has exchanged contracts on 18th of December 2014. Our solicitors dealing with our purchase received our signed contracts on 23rd of December 2014. I rang the solicitors dealing with the purchase on 6th of January 2015 to confirm that we were all set to complete on 16th of January 2015, a date which had been agreed since the beginning of the process ie. from the minute our offer was put in on the house we are buying. The solicitors told me we were not in a position to exchange contracts because they were waiting for a deposit from the solicitors dealing with the sale of our house. This was confusing as we had filled in the forms saying we did not have a deposit before completion as the purchase of the new property was dependent on the sale of the property we are in ie. any monies will be paid across on the day of completion. The solicitors dealing with the purchase have said they will not exchange contracts unless they have this deposit. We have again told them we do not have a deposit and cannot understand why they need it as all monies are being transferred across on the day of completion as is normal procedure. we are ready to pull out of the purchase of the property as we are now on Tuesday with our house we are in completing on Friday and if we don't pull out and find some alternative accommodation we are going to be homeless on Friday because the solicitors dealing with the purchase of our new property are not budging on their insistence of the deposit, despite the solicitors dealing with the sale of property sending them numerous emails and confirming the monies will be transferred on Friday on completion. Can you help?
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Are these solicitors instructed by you, or solicitors acting on behalf of the person selling the property you are buying?
Kind regards
AJ
Customer: replied 2 years ago.

they are our solicitors dealing the purchase of our new house

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Is there reluctance to exchange on the basis that they need to give an undertaking to pay the deposit on completion?
Also if you have exchanged on your sale what has happened to those deposit monies?
Kind regards
AJ
Customer: replied 2 years ago.

They do say they need an undertaking - but there is no deposit money as we are selling to a cash buyer and all monies are getting transferred across on Friday on completion. we are afraid they will not complete on the house we are buying on Friday and we will be homeless as we have no choice but to complete on the house we are selling as we have exchanged contracts already.

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
The problem is if your solicitor does not have a deposit he needs to either:
1. Exchange without a deposit - this involves convincing the sellers solicitor to do this;
2. Exchange on an undertaking - the only way your solicitor would do this is if he had an undertaking himself from your purchaser's solicitor - that he will receive the full balance of the deposit or proceeds on completion;
3. If you are completing on Friday he lines up simultaneous exchange and completion on Friday.
The other alternative is, if you take the view that on Friday you will need somewhere to live and have not completed your purchase, then you will need to rent. Renting costs money, so instead of spending money on rent, you could look into obtaining a bridging loan (which would probably be cheaper than rent) for the deposit so you can exchange before Friday.
I look forward to hearing from you.
Kind regards
AJ
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