You’ve found the perfect house or a flat, put in an offer, and had it accepted. Congrats! The next step is to sign a contract. But what happens after you sign a contract for a house or a flat? We’re here to tell you.
Once you’ve signed the contract, you’re legally obligated to purchase the property. The seller is also legally obligated to sell you the property. At this point, you’ll need to pay a deposit, which is typically 10% of the purchase price.
Also read: What happens after exchange of contracts
The deposit is held in escrow until completion. This means that it’s paid to the seller’s solicitor on completion day when the balance of the purchase price is paid. In some cases, the deposit may be held by your mortgage lender if you’re taking out a loan to finance the purchase.
Once the contract is signed, both you and the seller are committed to going through with the sale. However, there are a few things that could happen between signing and completion that could cause the sale to fall through.
For example, if your survey reveals serious problems with the property that you weren’t aware of, you may be able to back out of the sale. The same goes for if your mortgage application is rejected or you’re unable to get insurance for the property.
In most cases, though, everything will go smoothly and you’ll be able to move into your new home without any issues.
Also read: What do solicitors need when buying a house
What to do if something goes wrong between signing and completion
Sales sometimes fall through between signing and completion for a variety of reasons. It can be difficult to know what to do in this situation, especially if you are new to the industry. In this blog post, we will give you some tips on what to do if something goes wrong between signing and completion.
Also read: What do solicitors do in house buying?
Why the sale has fallen through
Firstly, it is important to try and figure out why the sale has fallen through. This can be done by speaking to your solicitor or conveyancer. They should be able to give you some guidance as to what has happened and why.
Salvage the sale or not
Once you have an idea of what has gone wrong, you need to decide whether or not you want to try and salvage the sale. This will largely depend on how far along the process you were, as well as the reasons why the sale fell through in the first place.
If you do want to try and salvage the sale, then you need to speak to the other party involved and see if they are willing to continue with the process. If they are not willing, then there is not much more you can do.
Also read: The Legal Stages of Selling a House
However, if they are willing to continue, then you need to work out a plan of action with them. This may involve getting new solicitors or conveyancers involved, as well as potentially resetting the whole process.
Sales sometimes fall through between signing and completion for a variety of reasons. It can be difficult to know what to do in this situation, especially if you are new to the industry. We hope that this blog post has given you some guidance on what to do if something goes wrong between signing and completion.
Also read: How are conveyancing fees calculated?
The consequences of breaking your contract
Estate agents in the United Kingdom are bound by law to adhere to certain standards when entering into a contract with a client. These standards are in place to protect both the agent and the client and to ensure that both parties understand the terms of the agreement. However, there are consequences for breaking these contracts, and estate agents should be aware of them before entering into any agreements.
Standard Consequences of Breaking a Contract
Several standard consequences can occur if an individual breaks their contract. These include:
– loss of money or property
– legal action from the other party
– punitive damages
– termination of the contract
– exclusion from future contracts.
These are just some of the potential consequences that can occur if a contract is broken. Depending on the severity of the breach, other penalties may also apply. For example, if an estate agent were to breach their contract by entering into a competing business, they could be sued for damages by their former client.
Also read: Conveyancing Fees on Transfer of Property
Consequences for Estate Agents
In addition to the standard consequences of breaking a contract, there are also specific consequences that apply to estate agents in the United Kingdom. These include:
– being removed from the Register of Estate Agents (REA)
– losing their license to practice
– being fined up to £5000.
These penalties are in place to deter estate agents from breaching their contracts and to protect consumers from unscrupulous practitioners.
Entering into a contract is a serious matter and one that should not be taken lightly. There are severe consequences for breaking a contract, including standard penalties such as legal action and exclusion from future contracts, as well as specific penalties for estate agents in the UK such as removal from the register and loss of license. It is important to be aware of these consequences before entering into any agreements.
Also read: Can I do my own property conveyancing
Conclusion:
Signing a contract for a house or a flat, marks a big milestone in the home-buying process. Once you’ve signed, you’re legally obligated to purchase the property and the seller is legally obligated to sell it to you. At this point, you’ll need to pay a deposit, which is typically 10% of the purchase price.
Keep in mind that there are a few things that can happen between signing and completion that could cause the sale to fall through. However, as long as everything goes according to plan, you’ll be moving into your new home before you know it!
