What Can Delay Completion On My Property Purchase?
There Are Several Reasons Why The Process Of Exchanging Contracts Could Be Held Up
For those selling a home in, the process of selling your property can be a stressful one, especially if you’re worried about your completion being delayed. There are several reasons why the process of exchanging contracts could be held up, but the good news is that many of those are avoidable.
What Can Delay Exchanging Contracts?
The exchange of contracts is a key step in all property transactions since it’s the point at which everything becomes legally binding. It can be an arduous process to get there, though. All transactions are different, so there are lots of different variables that come into play, even if your sale seems like a simple one. Here are some common reasons for delayed completions.
1. Searches, Queries, And Communication
If one of the search results hasn’t yet arrived, the process of contract exchange will be halted until it turns up. Unanswered queries are another common cause of delays. Both the seller and buyer’s solicitors ask questions of the other party, and the exchange of contracts can only proceed after they receive an answer that is satisfactory. If one of the solicitors is slow or unresponsive, delays can occur in the contract exchange process.
Any of the parties involved in the property sale could cause a hold-up if they’re slow in responding to information requests or documentation. But you can speed up the process as much as possible at your end by answering any questions promptly, reading, signing, and returning paperwork quickly, and keeping in touch regularly with your solicitor and estate agent. At Newman Property Experts we can shave around 4-6 weeks off your sale by utilising a Digital Legal Pack we provide to solicitors.
2. Issues With The Chain
Most property sales involve a chain of other properties, and if there is a problem anywhere along its various links, every sale and purchase will be held up. For example, if a buyer’s mortgage lender finds something dishonest or untoward about the applicant or property, they can stop the process by withdrawing an offer.
Unfortunately, in some cases, a buyer may also develop cold feet, bringing a halt to the process. Using the services of a reliable estate agent is the best way to prevent this, as your agent will communicate with the buyer to find out what their issue is and to offer solutions that will get the chain moving again.
3. Market Conditions
Sometimes, conditions in the property market will affect the length of time you need to wait until the exchange of contracts. If the market is overwhelmed with a lot of sales and purchases, searches will take longer to be returned, and estate agents and solicitors may experience backlogs. Although this only happens rarely, it can be a frustrating cause of delays.
4. Gazundering And Gazumping
Although the practices of gazundering and gazumping are frowned upon, they still exist in the property market. Until contracts are exchanged, these practices are entirely legal, albeit unethical.
How To Minimise Completion Delays
Although there is little that you can do to prevent delays further down the property chain, choosing the right team of professionals is the best way to avoid issues at your end.2023