House Purchase Closing

[nk14]

hi

we are trying to buy house and have signed contracts but vendor for some unknown reason has not returned signed contracts yet

when these are returned i know we then have 28 days to complete or else we can get hit with interest penalties. Is the vendor hit with similar penalties if they fail to complete within the 28 days

thanks

 

[Purple]

In reality I'm not sure if anyone ever pays penalties. Put pressure on your solicitor and the estate agent. Go mad on the phone and make yourself enough of a nuisance that they get their finger out.

 

[mf1]

"when these are returned i know we then have 28 days to complete or else we can get hit with interest penalties"

The sequence is vendors solicitor (VS) issues contracts to purchasers solicitor (PS). The contracts will show the closing date - which can be negotiated. It could be 4 days away or 4 months away - it depends on the positions of the parties.

Purchaser signs contracts and PS returns to VS. Vendors sign both contracts, VS cashes the deposit cheque and then VS returns the signed contracts to PS. It is only at this stage that there are binding contracts in existence. Until then either party is free to walk away.

Once contracts are signed, there is an exchange of information with all the parties working towards the agreed closing date. Only after the closing date can the 28 day completion notice be served. At the expiration of that date, the parties have choices as to what to do depending on who served the notice. It is then quite complex and an awful lot depends on what people want to do - complete? walk away?

And yes, people do pay penalties - we try and avoid it but sometimes it happens.

mf

 

[nk14]

thanks mf

that is interesting. Our solr seems to think that as we have signed that we are legally bound to complete event though vendor has not signed yet.

she says we need to be very careful re how we get out of this if needs be so as not to lose any booking deposit. i would have thought if we send them a letter stating they need to return signed docs in x days or we rescind contracts etc then we can walk away and get our booking deposit back

i cant understand how we would be so open in this situation