Imagine the scene: contracts are exchanged, the completion date is set, and you're already looking forward to your new home or celebrating a successful sale. Then, unexpectedly, one party fails to complete. This situation can feel incredibly daunting, but it's important to remember that while unsettling, it is also quite uncommon. Industry data shows that the vast majority of transactions proceed smoothly after exchange, with only a small percentage encountering such issues.

Why Might a Sale Not Complete After Exchange?

While rare, there are several reasons why a buyer or seller might fail to complete. For a buyer, this could be due to a sudden, unforeseen change in financial circumstances, a last-minute issue with their mortgage offer, or even a change of heart (though this is less common after the legal commitment of exchange). For a seller, it might involve unexpected issues with vacating the property, problems with their onward purchase, or unforeseen personal emergencies.

Regardless of the reason, the key takeaway is that once contracts are exchanged, both parties are legally bound. This isn't just a casual agreement; it's a firm commitment with significant legal implications if broken.

What Happens if a Buyer Doesn't Complete?

If a buyer fails to complete on the agreed date, the seller isn't left without recourse. Here's what typically happens:

• Loss of Deposit: The most immediate consequence for the buyer is usually the forfeiture of their deposit, which is typically 10% of the purchase price. This is held by the seller's solicitor and is released to the seller as compensation.
• Notice to Complete: The seller's solicitor will usually issue a 'Notice to Complete'. This is a formal document giving the buyer a further period, typically 10 working days, to complete the purchase. If the buyer still fails to complete within this timeframe, they are in breach of contract.
• Further Damages: Beyond the deposit, the seller can pursue the buyer for any additional losses incurred. This could include the costs of remarketing the property, any shortfall if the property sells for a lower price to a new buyer, storage costs, and even bridging loan interest if the seller was relying on the sale to fund their own purchase.
• Specific Performance: In very rare cases, a seller might even seek a court order for 'specific performance', compelling the buyer to complete the purchase.
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What Happens if a Seller Doesn't Complete?

It's not just buyers who face consequences. If a seller fails to complete, the buyer also has strong legal grounds:

• Return of Deposit & Interest: The buyer is entitled to the return of their deposit, often with interest.
• Notice to Complete: Similar to the buyer's situation, the buyer's solicitor can issue a 'Notice to Complete', giving the seller a set period to finalise the sale.
• Damages: The buyer can claim damages for losses incurred due to the seller's breach. This might include costs for temporary accommodation, storage of belongings, additional legal fees, and any increase in mortgage interest rates if they have to find another property.
• Specific Performance: A buyer can also seek a court order for 'specific performance', forcing the seller to sell the property as per the exchanged contract. This is a powerful remedy and is often used when the property is unique or particularly desirable.
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Our Approach: Clear Guidance, Honest Advice

At Lloyds Estates, we understand that these situations, while uncommon, can be incredibly stressful. Our commitment to transparency and follow-through means we're here to help, every step of the way, providing honest advice, no jargon. We believe in putting people before property, and that means guiding you through potential pitfalls with clarity and empathy.

While the legal framework is robust, our aim is always to prevent such scenarios through proactive communication and meticulous attention to detail during the sales progression. We listen, we care, we deliver, ensuring you're kept informed with honest market updates and support.

Making Your Move Simpler and Smoother

Moving home doesn't have to be stressful — let's make it easier together. Our fresh, energetic approach means we're more than an estate agent — we're your neighbourhood partner, committed to you and your next move. If you have concerns about any stage of your property journey, don't hesitate to reach out. We're here to offer genuine, human connection and expert guidance, making moving personal.