What happens if seller does not complete after exchange?

If it becomes clear that the seller is not going to voluntarily complete a contract, the buyer can apply to court for specific performance at the expiry of the period of the notice to complete. This means that damages are not usually adequate for a buyer.

What happens if the seller fails to complete after exchange?

If the seller fails to complete after exchange… I have been reviewing my draft contract and noticed that the penalty is a lot more severe when the buyer fails to complete compared to the case when the seller fails to complete. When the buyer fails to complete, he/she loses the deposit (i.e. 10% of the contract price).

What happens if the seller fails to complete the contract?

When the buyer fails to complete, he/she loses the deposit (i.e. 10% of the contract price). When the seller fails to complete, he/she only needs to return the deposit with some accrued interest. Please advise if that is correct. If so, it seems rather unfair for the buyer.

What happens if you pull out of exchange of contracts?

If your buyer pulls out after exchange of contracts it’s very likely they will lose their deposit, which is normally 10% of the purchase price. As the seller you can also sue the buyer for any loss this has caused, including any losses incurred if you fail to sell your house for what the buyer contracted to buy it at.

What’s the difference between an exchange and a completion?

What is the difference between exchange of contracts and completion? Exchange of contracts is the point at which the buyer pays a deposit and the sale/purchase contract becomes legally binding. Completion is when the balance of the payment for the property is passed over to the seller’s solicitor and ownership transfers to the buyer.

Can a buyer force the execution of a sale contract?

The buyer can force specific execution of the sale contract through the courts or is entitled to damages for breach of contract. There was a case of this on MSE about two years ago, and in the end the buyer found somewhere else fairly similar and accepted a substantial sum in damages from the seller. No reliance should be placed on the above!