House Buying Legal Issue

mercredi 2 août 2023

A BBS classic thread title!

My brother is a renter up north. He and his wife are buying for the first time. Nothing to sell.

They've gone through the conveyancing process and exchanged 3 weeks ago. Completion date was supposed to be yesterday. They didn't complete. Apparently the seller has a loan on the property relating to one of his businesses. No payment plan had been agreed. Unbelievably this was only picked up on the morning of completion day! My brother's solicitor said it only came up on the final completion day searches. That has got to be bollocks right? Surely it's the job of any solicitor to pick that up and address it way before exchange of contracts?

Anyhow they've still got two more weeks in their current rented property so if this can be sorted (by perhaps the seller paying back the loan with the proceeds of the sale) relatively quickly then they should just about be okay albeit with less time to move all their gear across.

If it all falls through they are f**ked because their mortgage offer will lapse in a couple of months and any new mortgage will be at a much higher rate and consequently unaffordable.

I suppose my question is are they entitled to compensation for this? I know that a buyer can forfeit a deposit for not completing. But can a shifty seller just wash his hands and walk away?


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