Buying a property has several processes. But the last of them all is the completion. So, after you have signed the contracts, you are waiting for the completion of the property. The remaining sale price needs to be paid during this time. However, there may be some sudden circumstances that may result in a delayed completion. What happens at this point?
Although delayed completion comes with several benefits, it also has potential downsides that cannot be ignored. Some significant problems you face can be the financial part of it. Although we all know that delayed completion can occur, sometimes we are curious to understand whether this can happen from the buyer’s side. If this is what you want to know, this article is yours to keep.
Truth Be Told….
Yes, in many cases, a home buyer may be responsible for delaying the completion date. But there is a lot more that you should know; let us unravel them one by one.
Why A Delayed Completion May Occur
It is best to agree on a specific property purchase timeline, as it will make the process more efficient. We all know that a delayed completion can become a significant concern, but sometimes, it can be a part of the process.
Once parties interested in purchasing the property express that to the real estate agent, they make the offer. After that, the selling price is decided and agreed upon as soon as the other party accepts it. This is when a mortgage is arranged, and the exchange of contracts occurs. Both parties’ solicitors do this. A closing date is normally decided upon for 1-3 months after the contracts are signed. But many issues can occur.
Reasons For The Delayed Completion Date
- The buyer’s mortgage loan has been delayed.
- Buyers have probably demanded more time because they are waiting for the funds to be available. This will be from their sale to finish the purchase.
Why May A Delayed Completion Date Cause Problems After Exchanging Contracts?
If you are buying a property, many problems may delay the completion date. Let us review them one by one.
- If someone is selling the property, they have the legal obligation to do that. The legal obligation is relevant over the same state that it was present in while the contract was exchanged with the person who agreed to purchase it. If any issues or defects arise before the time you bought it and the time it gets complete, you are likely to want rectifications carried out.
- Now, the delay of the completion date can also be detrimental for the buyer in many ways. Even a 10% deposit is plenty of money to be held.
- In many cases, the seller may wish to cancel the selling of the property after an extension hold-up.
- If you are about to purchase the property with a mortgage agreement in principle from your mortgage lender, there is still no guarantee that it will stand rock solid after completion finally occurs.
These are a few reasons why both the buyer and the seller need to agree on the completion date. This is because they have consequences for both. If you need to wait to sell your home, you cannot hand over the money unless everything has gone through. Even if you have purchased the house, you will not be allowed to start living inside it. This may go on for a good several months that may stem up several kinds of difficulties. If you want to learn more about upcoming communities and how you can purchase them, make sure you visit this link by Ballymore Homes.
Tips For Sellers If The Completion Date Is Delayed
- Consult with the real estate agent as fast as possible about the delays. So, if you face any inconveniences, you can consult with your agent and resolve them right away.
- Connect with the buyer by every possible means and try to explain the difficulties. This will help them to remain in the loop. This can help you to combat any hold-ups by ensuring that everything is how it should be. It will also assist you to figure out whether it is ready to move in on the specific day of the completion date.
- It is also important to hand over the keys to the agents. Also, keep in mind that you have fulfilled your duty of providing vacant possession to the buyer without any problems.
The Bottom Line
Yes, a homebuyer has the potential to delay the completion date if they follow the set of instructions mentioned above. That is why it is best to go through the various reasons for the completion date delay, the reason for its occurrence, and more. You may also look at the tips for sellers to apply for the completion date is delayed. All of them will help you have a safe property experience when in need.
