Pulling out of a house sale can be a stressful decision to make.
There are many reasons why you might choose or need to pull out of your house sale but it can be confusing knowing where you stand from a legal and financial point of view.
The good news is that you’re well within your rights to pull out of a house purchase…
Until you exchange contracts. Once you do that, you’re bound by the subjects and terms set out in the contract, which is legally binding.
Can You Pull Out Of A House Sale
Okay, there is a bit more to it than that, but the basic point is that you absolutely can pull out of a house sale if you want to. You might have had a chance in circumstances, your purchase might have fallen through, or you might simply have changed your mind, but whatever the reason, it’s important to know that you can.
Pulling out of a house purchase before exchange is possible but you might still be liable for certain charges and costs.
If you’re selling your house and you want to pull out, you should speak to your solicitor and ensure that you check the terms of your agreement as signed by your estate agent.
When Can You Pull Out Of A House Sale Without Incurring Costs
You can pull out of a house sale without incurring costs before you exchange contracts in some cases. For example, if your solicitor has a no sale, no fee agreement with you then you won’t incur any further costs.
It all comes down to who is looking to remove themselves from the house sale and the agreements you have – if you have a buyer that is happy to proceed but you decide to pull out, you might still need to pay your estate agent’s fee.
If your solicitor has started work on your property purchase and/or sale, the reality of the situation is that they’ll probably still charge you for the work conducted up to that point.
There’s different ways that fee can be calculated but if you check the terms of agreement you signed with your solicitor or conveyancer, it’ll set out what to expect if you pull out of the sale of your home. The most common outcome is for you to pay for the work carried out so far which might be billed at their hourly rate.
Plus, any costs incurred by your solicitor will also need to be covered. However, it’s common that many solicitors require an upfront payment for their services to cover costs for searches and various admin requirements before they begin working with you.
If it’s a leasehold property that you’re selling, payments made to managing agents, landlords, and leaseholds might not be recoverable either, nor will any mortgage adviser’s fees as part of your property move.
Pulling Out Of A House Sale Before Exchange
Pulling out of a house sale before exchange isn’t unheard of but you should consider all of your options before you make a final decision.
Moving house can be a long and expensive process so it’s important that you speak to your solicitor and explain your reasons so that they can advise on your best route forwards to ensure that you don’t end up having to pay out significant fees without selling your home.
Pulling Out Of A House Sale Or Purchase After Exchange – Can You Do It?
This is something that needs serious consideration if you’re planning on doing it.
Pulling out of a house sale or purchase after exchange can carry significant costs and legal ramifications, so it’s not a decision to take lightly.
It might lead your buyer or seller to issue a ‘notice to complete’ which gives you a 10-day period to complete the sale and if you’re unable to, this will mean you’re in breach of contract.
If you’re a buyer and you wish to pull out after exchanging contracts, the seller WILL be entitled to end the contract AND keep the deposit. They are then free to sell the property and any contents that have been agreed to another buyer as well as claiming damages from you as well as any losses occurred. That might be a depreciation in the value of the property, for example.
If you’re a seller and you’re pulling out after exchanging contracts, you have some legal obligations to deal with.
If you as the seller fail to complete the sale, the buyer can claim a daily rate of interest for the notice to complete, they can claim the original deposit, and any documents must be returned by the buyer to you – but you’ll need to cover the cost of doing so.
There is also a cost over the breach of contract that could mean you end up in a court dispute over losses incurred.
Solicitors Near Me To Advise On Pulling Out Of House Sale Or Purchase
If you’re thinking about pulling out of your house sale or purchase, you should carefully consider your options.
The best thing to do is to seek the advice of an expert conveyancing solicitor to help understand what the best way to proceed is, and at Solicitors Near Me, we’re here to assist with exactly that.
We connect you with expert conveyancing solicitors near you to ensure you have access to the very best legal advice – and you don’t pay a penny for our service.
Until you decide to proceed with the solicitor we connect you with, everything is absolutely FREE…