Conveyancing: What happens when a sale falls through?

Conveyancing: What happens when a sale falls through?

Do you have any questions about conveyancing? Contact us today.

Questions to be answered in this article

At what stage can a buyer or seller pull out? 

A buyer or seller can pull out at any point up to exchange of contracts, without having to pay any damages to the innocent party.

If a buyer or seller pulls out after exchange of contracts, the party in breach will be liable for damages and will forfeit the deposit provided on exchange.

Is there anything you can do to prevent this from happening?

Unfortunately not, the contract is not legally binding or enforceable until exchange. If you are worried about a buyer or seller pulling out, we would advise talking to the agents; who are there to help and can liaise directly with both the buyer and the seller.

Alternatively, speak to your conveyancer to see if they are aware of any issues which they may be able to resolve. Often, a party may make a false threat to pull out; as they are frustrated with the process, they will not always carry through with this.

Particularly, as it will mean that they will have to re-start the whole process again with a new buyer or seller and this is not only timely but costly.

Do you have any questions about conveyancing? 

Contact us today.

What fees need to be paid in the event that a sale does fall through?

We understand that it is disappointing when a sale falls through; we will look at the time spent and charge for the work carried out on the matter up to the point that the sale or purchase is aborted. Any disbursements paid, such as searches and document fees up to that point will also need to be paid.

If after reading this article you have any questions, please contact a member of our Residential Property team.

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