Problems can arise at any stage when selling your home, particularly if you or the buyer are involved in a chain, selling one home to buy another.

There is always a risk that you (or the buyer) will decide to pull out before contracts are exchanged. This is not illegal.

• The buyer has reduced the offer
  
• The survey or homebuyer's report has revealed major problems
  
• We can't agree the conditions of the sale
  
• The buyer can't get a formal mortgage offer
  
• The property has been damaged before the completion date
  

The buyer has reduced the offer

The offer that the buyer makes is not necessarily the price s/he will pay if the sale is finalised. If the offer says that it is 'subject to contract' there is still room for negotiations about the conditions of sale.

Calling the sale off

Either you or the buyer can call the sale off at any point between an offer being accepted and the exchange of contracts. For example:

• you get a better offer,
• you decide not to move.

You can ask for a contribution towards any fees or expenses that you have lost if the buyer calls off the sale. The buyer doesn't have to pay unless you made a legal agreement when the offer was accepted, stating that s/he would pay.

Back to top

The survey or homebuyer's report has revealed major problems

Most surveys and homebuyers' reports will indicate that the property needs repairs. Surveyors often point out the worst possible outcome. If the report says that the property needs expensive repairs you can offer to:

• get the problems fixed before the sale,
• reduce the price.

Your solicitor can do most of the negotiation as part of the conveyancing.

Back to top

We can't agree the conditions of the sale

The buyer can pull out at any stage until contracts have been exchanged. You may want the buyer to sign a legal agreement saying that the sale can't be called off as long as you exchange contracts within a certain amount of time. You will probably have to pay extra legal fees to do this.

Your solicitor will then negotiate with the buyer's solicitor to draw up a final contract. This stage often involves considerable delays, as you may not agree to everything the buyer wants. You must agree all the conditions of sale before you exchange contracts.

Back to top

The buyer can't get a formal mortgage offer

If the buyer can't get a formal offer you may decide to look for another buyer. You can also wait while the buyer explores the available options. For example:

• applying to a different mortgage company,
• applying for help from Co-Ownership.

Back to top

The property has been damaged before the completion date

The buyer is usually responsible for building insurance from the date you exchange contracts, not the completion date. The buyer's insurance will usually have to pay for any repairs. You are still responsible for your personal belongings so make sure your contents insurance is valid until the completion date.

Back to top