Legal Q&A: can our buyers move in early once we've exchanged contracts?
Question: We are selling our flat and a completion date has been agreed for January 31. The flat’s empty as we’ve already moved into a house I inherited. The estate agent has asked if we could complete early so the buyers can be in for Christmas. As we have exchanged contracts, can we do this? We are happy to help if we can and if the agent’s suggestion is legally possible.
Answer: As you have exchanged contracts there is a binding agreement between you and your buyers.
Accordingly, both parties are obliged to complete the transaction on the agreed date stipulated in the contract of this coming January 31.
It is possible for you and your buyer to agree upon an alternative date.
Check that there is no particular reason why you originally wanted to complete at the end of January — for example, if you have a fixed interest rate mortgage for a specified period and you sell the property before the fixed term has expired and do not take out another mortgage, you may be liable for an early repayment penalty.
Speak to your solicitors and tell them that you are happy to change the completion date to assist your buyers — but ensure your team will have enough time to do the necessary extra legal work that will be involved.
Your solicitors should vary the contract formally by drafting a supplemental agreement changing the completion date.
This agreement must be signed by both parties and exchanged like the original contract. It will then be binding and enforceable and your buyers can then be in their new home for Christmas.
These answers can only be a very brief commentary on the issues raised and should not be relied on as legal advice. No liability is accepted for such reliance. If you have similar issues, you should obtain advice from a solicitor.
If you have a question for Fiona McNulty, please email legalsolutions@standard.co.uk or write to Legal Solutions, Homes & Property, Evening Standard, 2 Derry Street, W8 5EE. Questions cannot be answered individually, but we will try to feature them here. Fiona McNulty is a solicitor specialising in residential property.