What Happens if a Sale Falls Through? Your Legal Rights and Next Steps
A property transaction that fails before completion can be both stressful and costly. Unfortunately, it is a reality of the housing market in England and Wales, where agreements are not legally binding until exchange of contracts. Understanding your rights and next steps is important in such circumstances.
Why Do Sales Collapse?
Common reasons include: - Adverse survey results. - Mortgage refusal. - Chain breakdowns. - Last-minute changes of heart.
The Financial Impact
Until contracts are exchanged, either party may withdraw without penalty. However, costs such as surveys, mortgage fees, and legal expenses are unlikely to be recoverable.
Gazumping and Gazundering
Some transactions collapse due to gazumping (another buyer offers more) or gazundering (the buyer lowers their offer late in the process). While frustrating, both practices remain lawful.
Minimising the Risk
Although no method eliminates risk entirely, you can reduce it by: - Instructing a solicitor early. - Keeping communication open. - Considering agreements such as lock-out contracts in certain cases.
Moving Forward
If a sale does fall through, your solicitor can guide you on relisting or moving to an alternative purchase as swiftly as possible.
Summary
While the collapse of a sale is disappointing, knowing your legal position helps you move forward with greater confidence.
At Sheltons Solicitors, we provide calm and practical support, helping clients manage setbacks and continue towards their property goals.
Contact Sheltons Solicitors:
[Text Wrapping Break]Visit: www.sheltons-solicitors.co.uk[Text Wrapping Break]Call: 0115 955 3444[Text Wrapping Break]Email: info@sheltons-solicitors.co.uk
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The materials on this website do not constitute legal advice and are provided for general information only. Whether express or implied, no warranty is given concerning such materials. We shall not be liable for any technical, editorial, typographical, or other errors or omissions within the information provided on this website, nor shall we be responsible for the content of any web images or information linked to this website.
The information contained in this article does not constitute financial advice or recommendation and should not be considered as such. Sheltons Solicitors does not offer financial advice and is not regulated by the Financial Conduct Authority (FCA), the authors of this article are not financial advisors and are therefore not authorised to offer financial advice.
The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.
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A property transaction that fails before completion can be both stressful and costly.