House Exchange time period

[tracyjb]

I would like to know how you can find out what is holding up a chain and preventing it from exchanging. There are five of us in a chain and we should have exchanged last Friday but this didnt happen due to a deposit at the bottom of the chain not clearing. We are now on Tuesday and still no news and our solicitors and estate agents arent much help with information. We all feel like we arent being told the truth. Is there a time period to exchange because otherwise our completion date keeps moving forward. Also is it likely that the person at the bottom off the chain may have paid by cheque? How long would this take? We have also been told that there has to be 8 days between exchange and compltion for the start of the chain is this likely to be true in todays world.

Thank you

[Eve]

Chain transactions are notorious for problems like this as everyone has to be ready before proceeding and you are dependant on people you, your legal advisors and agents are completely unconnected with.

The best people to try and find stuff like this out are the agents as they have an incentive to get things through to get their commission.

If there is no direct contact between the different parties (buyers and sellers) in the chain contact the agents on your sale and ask them if they could make enquiries down the chain in order to find out what the hold up is.

There is no time period for exchange unless it has been previously specified by a seller eg a reservation period on new build properties. Unless otherwise agreed, both sides can exchange or pull out when they like.

It is possible, although frustrating, that the people at the bottom paid by cheque. They usually take 5 working days to clear but can be put on a 3 day special clearance.

As for the 8 days there could be a number of reasons such as notice periods etc... it is more than likely the time that is needed to request mortgage monies from their lender. If they do not get it in the completion date then they would be in breach of contract and serviced with notice (and a notice fee as the per the contract eg �100 plus VAT) and charged interest on the whole purchase price for every day is does not complete.

Service of notice will then tend to pass up the chain which makes everyone suffer and will delay completion further, incur costs etc...

Their solicitors are probably making sure they get the mortgage monies in in god time for completion to avoid this happening.

Hope this helps!

[lady_p_gold]

Sorry to say this, but during all my house buying and those of my family we find that this situation is almost the norm, and half the time things fall through and the chain collapses. There is no way of preventing it really while our laws remain as they are. There does not have to be eight days between exchange and completion it can take place on the same day, but this is unusual.

[hustle1981]

the first 2 answers are correct. if you want to know for sure when completion is and you are all deperate to exchange you can. if every one agrees it is possible to exchange with a nil deposit. if the solictors say no. ask why. then you will find out the problem.

[chitchat]

I was due complete my house purchase with my buyer on 7th July. There were only three of us in the chain. My buyers solicitors were so incompetent that the sale did not complete until 18th August. Even the fact that my buyer suffered from a heart attack during this time did nothing to get their finger out. I lost out big time financally (we were purchasing a property abroad - but due to the delay had heavily penalties to pay. Because they were not my solicitors (mine were very good but there hands were tied) I could not claim any compensation from them. Solicitors it seems are a law into themselves!