If you are buying or selling a property, it can be frustrating to find that the exchange of contracts has been delayed. We take a look at some of the most common causes of delays.
When you buy or sell property, the contract only becomes legally binding once it has been exchanged with the other party. This is the point at which the date for completion is set and no-one can pull out without breaching the contract.
In order to exchange contracts, all of the parties in the chain need to be ready. Potential hold-ups include:
A problem with the survey
If a problem is revealed in a survey, the buyer will usually want to obtain quotes for any work needed to remedy the issue. It can take time to arrange for builders to visit and provide a detailed quotation. Once this has been received, the buyer will generally want to renegotiate the price to take into account the cost of the work. All of this can delay matters, particularly if you have had to wait for a busy surveyor to be available to carry out their inspection in the first place.
Delay in receiving a mortgage offer
Exchange cannot take place until anyone needing a mortgage has received their offer. If lenders are busy or potential borrowers have been slow to send in their applications or have omitted crucial documents, everyone in the chain could end up waiting for an offer to be issued.
An issue with the legal title to the property
It is essential to ensure that the legal title to the property is sound. If you are obtaining a mortgage, your lender will also insist on this. If an issue arises with the title, you need an experienced solicitor who will be able to deal with this promptly and effectively.
Missing documents
A wide range of documents need to be provided to the buyer’s solicitor, including any documents referred to in the legal title, planning consents, building regulations approvals for alterations and guarantees. If documents are missing it can cause a delay while replacements are obtained. If you are selling a property, you can instruct a solicitor early on and they will let you know what you need to provide so that you can start putting together everything you have available.
If documents are missing, and you do not have them, an experienced conveyancer will be able to suggest how to deal with the situation. This could be by requesting replacements or by putting indemnity insurance in place.
The need for extra legal paperwork, including relating to funding
In some situations, a range of extra paperwork may be needed. For example, if you are being gifted the deposit, the person giving the money will need to sign a range of documents to satisfy your lender and also to comply with anti-money laundering regulations.
Delays receiving search results
If local authorities or other search bodies, such as drainage companies, are busy, there could be a delay in receiving search results. If you are buying a property, your solicitor should apply for these promptly as soon as the contract package is received. In some cases, another option such as search indemnity insurance, may be a better alternative.
Someone in the chain pulls out
If someone in the chain pulls out, then the exchange will not be possible until a new buyer is in place. This can often cause the whole chain to collapse and you may need to start again from scratch. However, in some cases, the other parties in the chain may be prepared to wait. Exchange of contracts is likely to be delayed for several weeks while the new party catches up with the transaction.
Avoiding delays
To give yourself the best possible chance of avoiding delays, you should use a conveyancing solicitor with the experience to manage issues quickly and efficiently. Most problems can be resolved and having an expert conveyancer on your side will ensure that difficulties are anticipated wherever possible and dealt with as soon as they arise.
Contact us
If you would like to speak to one of our expert property lawyers, ring us on 0333 3055 189 or email us at info@lpropertylawyers.co.uk
