The existence of the notice will prevent any transfer of the property from being registered at the land registry, unless the buyer's consent is given or the seller successfully applies for the notice to be removed from the register. This is particularly important if it is perceived that the reason for a failure to complete is because the seller has received a higher offer for the property after exchange of contracts and is possibly dealing with that third party. In addition to serving a notice to complete at the correct time, a sensible step to take at this stage is for the buyer to register a unilateral notice at the Land Registry, which will give any potential alternative purchaser a warning that there is an existing contracting purchaser with an interest in the property. The effect of the notice is that it makes time "of the essence", requiring the other party to complete the transaction within ten working days. This means that at any time on or after the contractual completion date, a party who is "ready willing and able to complete" can give the other a notice to complete. Where the contract incorporates the Standard Conditions of Sale that form part of almost all residential sale contracts, the concept of a "notice to complete" will apply. What are the buyer's options in these circumstances? How should they protect their position, assuming they wish to keep the contract alive rather than terminating it, taking back their deposit and pursuing the seller for damages for their losses? Preliminary steps Most sellers want to sell.īut there are certain circumstances, such as where a significantly higher offer is received for the property, or the seller experiences an unexpected change in personal circumstances, that may lead to the seller indicating an intention not to perform the contract. It is rare for a seller to exchange contracts and then wilfully fail to complete a sale. This is usually because the buyer has been unable to raise the necessary funding for the purchase. The vast majority of cases involving the failure by one party to complete a contract for the sale and purchase of property arise due to the buyer's default. A seller's prerogative? When a seller refuses to complete a sale.
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