Solicitors Specialising in Property Litigation
Buying a new home is often described as 1 of life most stressful experiences. But facing a disagreement during or after a property sale or purchase can be even more stressful and unpleasant. Involving an expert conveyancing disputes solicitor early on will give you the best chance of resolving matters promptly and without lengthy and often expensive legal wrangling.
Property transactions are complex. Buying a new flat or house is often the most expensive transaction anybody goes through in their lifetime. And with large sums of money and high expectations involved, there is extensive scope for arguments. If a situation is allowed to escalate, it could be expensive and damaging.
Our solicitors deal with a wide range of property and conveyancing disputes, using our expertise to find the right solution before matters deteriorate and the level of conflict increases.
Looking for legal advice on a Conveyancing Dispute? Call our highly Specialist Property Dispute Resolution team on FREEPHONE 0800 1404544 or one of our four local office numbers for FREE initial phone advice – no strings attached.
Common types of conveyancing disputes
Conveyancing disputes our team regularly deals with include:
· Arguments over fixtures and fittings
· Delayed completion
· Disputes over the condition of property on completion
· Failure to clear property of possessions on completion
· Failure to complete a conveyancing transaction
· Failure to notify buyers of an existing neighbour dispute
· Failure to vacate property on completion
· Incorrect information provided on property information forms
· New build disputes over condition of property and snagging
Click here to read more how about our New Build Problem Solicitors can help you
· Professional negligence claims against conveyancers and conveyancing solicitors
Click here to read more about Claiming Compensation from Negligent Conveyancing Solicitors
· Professional negligence claims against surveyors
Click here to read more how about Surveyor Negligence Claims
What happens if you pull out of a house purchase before exchange?
A conveyancing transaction is not legally binding until your solicitor exchanges contracts. This means you are entitled to pull out of a house purchase or sale before exchange – and there are no consequences. Common reasons for pulling out of a conveyancing transaction include:
· Your mortgage offer is not approved
· The lender is not prepared to lend because of issues with the property
· Your survey reveals problems
· You changed your mind about buying or selling
· You receive a higher offer from another buyer and want to accept it, known as gazumping
· Your buyer drops their offer right before the exchange of contracts, known as gazundering
· The searches or enquiries your solicitor carries out reveal issues with the property
· Someone else in the chain is not going ahead, so the chain collapses
Who pays solicitor fees when the buyer pulls out?
If a buyer pulls out of a house purchase, each party pays their own costs. Although this can be frustrating, there is no way to recover your costs from the other side if contracts have not been exchanged.
The situation changes after an exchange of contracts when both parties become legally bound to complete the transaction on the agreed date.
Who pays solicitor fees when seller pulls out?
If a seller pulls out of a transaction before the exchange of contracts, everyone is also liable for their own costs. Your conveyancing solicitor will limit their costs to the amount of work done to date, depending on how far through the transaction they were before it fell through.
Common conveyancing disputes – what happens if completion is delayed?
Delayed completion happens in different ways:
· Delay before exchange of contracts
· Delayed completion on notice
· Completion delayed beyond specified completion date
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Delay before exchange of contracts
Delays often occur during the conveyancing process. As experienced conveyancing solicitors, we always work proactively to move a transaction along effectively. We keep in touch with the other side’s solicitors, provide information promptly, and liaise frequently with estate agents. However, some delays are inevitable. For example, someone in the chain may have difficulty obtaining a mortgage offer.
If we have not exchanged contracts, there is no legal solution. We will continue to press for exchange, but often, it is just a question of waiting until everyone is ready.
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Delayed completion on notice
If you are buying a new build property, the contract may say that completion will take place on one month’s notice. This is often because the developer is still constructing the property and cannot give you a precise completion date at the time the exchange of contracts takes place.
You could experience difficulties if the developer fails to serve notice to complete within a reasonable time and there are delays in finishing the property. For example, your mortgage offer may expire or you may need to renew your tenancy agreement if you rent.
Your contract may include a long stop completion date. That means that if the developer fails to be in a position to complete by that pre-set date, you may be entitled to pull out of the transaction or seek compensation for breach of the contract. The builder will usually have a complaints process to follow if you wish to make a claim.
If the contract does not include a long stop completion date but there is an unreasonable delay in finishing your property, you may also be able to cancel your contract and claim your deposit back. It is important to take legal advice before doing this, to ensure that you do not breach the contract yourself.
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Completion delayed beyond set completion date
If your solicitor exchanged contracts and completion does not occur on the set date, the party who delayed completion is in breach of the contract.
What happens if the seller fails to complete after exchange?
If you have exchanged contracts and your solicitor paid the purchase money on completion day but the seller fails to complete it, they have breached the contract. Your solicitor will advise you on the best course of action, depending on what your goal. The 1st step is often to serve a notice to complete on the seller, requiring them to vacate the property and complete the sale. Alternatively, you may prefer to end the contract and ask your solicitor to take action to recover your deposit and costs.
What can a seller do if a buyer fails to complete a purchase?
If your buyer fails to complete a purchase on the day specified in the contract, your solicitor will serve a notice to complete to try to prompt them to comply.
If they still do not complete, the contract will usually allow the seller to withdraw from the contract and keep the deposit. The seller can also take legal action to recover their reasonable costs, which could include the cost of additional removal services, interest on the money owed and costs incurred on a related transaction.
Where there is a chain of transactions, each party will claim these costs from the next individual in the chain, who will be entitled to claim all of the costs from the person below them who defaulted. This means that the original defaulting party will be required to pay the costs and losses of everyone in the chain.
What is a notice to complete?
If a buyer or seller fails to complete, the other party cannot simply pull out of the contract. The usual contract terms require the non-defaulting party to serve a notice to complete first.
A notice to complete generally gives the defaulting party (i.e. the party responsible for failing to complete) ten working days to complete. If completion did not occur because of a minor delay, such as a bank sending a mortgage advance late or a problem with removals, you can simply wait and see if the other side can complete a day or two late. That’s not unusual and is usually resolved quickly and relatively easily – though it may be inconvenient.
Where it seems likely that the other party will cause a lengthy delay or may refuse to complete, your solicitor will probably recommend serving a notice to complete.
What happens on notice of completion?
Your solicitor will formally serve the notice to complete on the other party’s solicitors. A notice usually gives the buyer or seller ten working days to comply with the terms of the contract by completing the transaction.
If the buyer is the defaulting party and they have not paid a full 10% deposit, they will be required to pay the balance immediately.
If the defaulting party still fails to complete the purchase, then after the notice period expires, the non-defaulting party has the right to rescind or end the contract. Alternatively, they can ask the court for an order for specific performance – which means they require the defaulting party to complete the sale or purchase.
Can a buyer serve a notice to complete?
If a seller fails to complete on the agreed date, the buyer can choose to serve a notice to complete. Again, it is usual to consider the cause of the delay before rushing to start legal action. If it is only a minor problem which is likely to be resolved within a few days and the seller is still keen to complete, your solicitor may advise you that a notice to complete is unnecessary.
What is notice period for completion?
The purpose of a notice to complete is to make ‘time of the essence’. This is because the usual sale contract terms only allow someone to end the contract if:
· Completion did not happen on the agreed date; and
· Time is of the essence
It is usual to give a notice period of ten working days in the notice to complete. This is often long enough to provide the other party enough time to deal with problems but short enough that time is of the essence.
Conveyancing disputes – what is specific performance?
An order for specific performance is an order of the court requiring someone to take a particular action. In a conveyancing transaction, specific performance is generally to complete the sale or purchase in accordance with the contract.
However, there is no guarantee that a court will grant an order for specific performance. This is because it may be considered too onerous. For example, if a seller did not complete the transaction because they had become seriously ill, the courts may decide not to order them to do so. The courts will not usually make an order for specific performance if the party at fault has suffered hardship since entering into the contract or if they would suffer hardship if forced to complete the contract.
If the court refuses to make an order for specific performance, the buyer is still entitled to claim compensation instead.
Specific performance or notice to complete – which is right for you?
If completion does not take place, the usual order of events is:
· Your solicitor and the estate agent will explore the reason for the failure to complete
· If it is likely to be only a minor delay, your solicitor will discuss with you the possibility of completing within the following few days
· If the delay appears significant, your solicitor will issue a notice to complete. They will do this before an order for specific performance is requested
· If the other party does not comply with the notice to complete within the allowed time period, you will decide whether you want to:
o Rescind or end the contract; or
o Ask the court for an order for specific performance to try and force the other party to complete
What is gazumping?
Gazumping takes place when a seller is part way through the conveyancing transaction with a buyer, and the seller drops the buyer in favour of a new buyer who has offered a higher price. It is frustrating for the original buyer but not unlawful.
It’s quite different from gazundering – in fact it’s the complete opposite i.e. when a purchaser produces their offer at the last minute, often just before exchange of contracts is due to take place. Again, this is not illegal.
Can I sell my property with an ongoing neighbour dispute?
You can offer your property for sale while you are involved in a neighbour dispute, however, you must tell potential buyers about the problem. Depending how serious the problem is, this may be off-putting, and the prospective purchaser may decide not to go ahead or reduce their offer once they know of the situation.
If you are involved in this kind of dispute and trying to sell, then it’s always a good idea to try to resolve matters with your neighbours before you market the property.
Avoiding conveyancing disputes when selling your property – what you have to declare about neighbours
When you sell a property, you will usually fill in a standard property information form. You need to include details of:
· Current neighbour disputes
· Problems such as antisocial behaviour, threats or harassment
· Complaints received from neighbours
· Complaints you have made about your neighbours
If asked, you must also provide details of former neighbour disputes that you have resolved.
What happens if I was not notified of a neighbour dispute before I bought my house?
If a seller did not disclose a neighbour dispute when they filled in the property information form and they knew about the dispute, this is known as “misrepresentation”. If you and your solicitor can’t negotiate a satisfactory settlement for you, you can ask the court to deal with these kind of conveyancing disputes. Courts will not usually overturn a contract to buy property following misrepresentation, but if you can prove you were misled in this way, the court can award you the difference between the price you paid and what the property is worth, bearing in mind the neighbour dispute.
To win these kind of conveyancing dispute misrepresentation cases, you need to prove that the seller knew about the dispute. This is not always easy – the vendors may well claim that they did not consider it to be a dispute or that it was resolved. Providing strong proof of misrepresentation is often tricky.
If you think you have been the victim of misrepresentation in this way, make sure that you speak to an conveyancing dispute solicitor at an early-stage. They will be able to give you an idea how strong your case might be. If you instruct one of our team to help with this kind of situation, we will usually try to negotiate an out-of-court settlement before starting legal action. Taking this kind of issue to court can be expensive and is often subject to considerable delay.
What happens if the seller put incorrect information on the property information form?
The the latest version of property information form TA6 (5th edition) form was updated as recently as March 2024. It’s an important document because it provides the purchaser with details of a whole range of important issues about the house or flat they are buying – with information about boundaries, ownership, any disputes which have occurred, utilities and services and insurance for example.
Misrepresentation takes place if the seller knowingly provides incorrect information to the buyer.
In these circumstances, our team would look for evidence that the seller knew the information was inaccurate and present that evidence to them or their own solicitors in an attempt to settle the matter. It may be possible to deal with your claim without litigation if they are prepared to admit the misrepresentation and make an offer of settlement to avoid court.
What happens if seller does not leave the fixtures and fittings we agreed upon?
When you move in, you should carefully check that the sellers have left all of the fixtures and fittings included on the form. The form is part of the contract and if the seller removes these items, they are in breach of contract.
You can ask a solicitor to write a formal letter advising them to return the items or you will claim compensation for the cost of the items plus your legal expenses.
What happens if seller does not clear their stuff from property on completion?
The contract usually requires the seller to ensure that all rubbish is removed from the property (including from the loft, garden, outbuildings, garages and shed) and that the property is left in a reasonably clean and tidy condition.
If the seller leaves items at the property, you can ask your solicitor to contact the seller’s solicitor and request that these are removed immediately.
Make sure you don’t dispose of any valuable items they left behind yourself. If necessary, your solicitor will advise the seller that you will store them at the seller’s expense for a specified period of time. After this time, you will be able to dispose of them and send the seller a claim for the costs you incurred.
If the seller leaves the property in a mess and you need to hire professionals to clear and clean it, you can pursue the seller for the costs, plus your legal expenses.
Conveyancing disputes with developers – how do I deal with a new build problems?
It is usual for a new build home to need some minor jobs carried out by the developer to deal with issues you discover when you move in. You can prepare a ‘snagging list’ of items that need attention, for example, you may find that a door is catching on the floor, stairs are squeaking or radiators are not level.
However, if you find serious issues, you may need to pursue legal action against your developer to ensure they properly remedy matters and that you are compensated for any loss and inconvenience. Our property dispute team handle these cases on regular basis.
Conveyancing disputes – can I get compensation for a negligent survey?
If your surveyor was negligent when preparing your survey and you have discovered faults with the property that they should have identified, you may be able to make a professional negligence claim against them. Other members of our dispute resolution team regularly deal with these kind of professional negligence claims.
We will need to prove that:
· The standard of their service fell below what a reasonable person would expect from a professional surveyor; and
· You suffered a loss as a result
Can I get compensation for negligent conveyancing?
Your conveyancing solicitor has a duty of care to provide a service of a professional standard when carrying out your purchase or sale transaction. If their service falls below the standard you could reasonably expect and you lose out, you can consider making a professional negligence claim against them.
Common legal mistakes giving rise to potential negligence claims include:
· Not advising you of restrictive covenants that apply to the property
· Not realising that the property does not have the rights you need, such as rights of way or other easements
· Not advising you of defects in the legal title
· Not obtaining evidence of planning consents and building regulations approval for alterations or extensions
· Not carrying out the right searches
Mistakes like these can prove expensive – but fortunately, if you are able to prove them, all solicitors are required to carry a minimum of £2 million Professional Indemnity Insurance to cover compensation for these kind of errors.
Can alternative dispute resolution help me or do I have to go to court for conveyancing disputes?
The first step in dealing with a legal disagreement is usually to ask an experienced conveyancing disputes solicitor to write to the other party setting out your case and asking them to offer to settle matters.
Your solicitor can then negotiate to try and reach an acceptable agreement over the amount they will pay you in compensation or actions the other party will take to resolve matters.
If this is not successful, alternative dispute resolution is a good choice. There are different types, including mediation, arbitration, and early neutral evaluation, and your solicitor will be able to suggest the most appropriate one for your case.
Alternative dispute resolution is, wherever possible, usually a faster and more cost-effective way of dealing with these kind of conveyancing disputes than court based litigation. And it’s worth noting that courts much prefer that litigants have attempted alternative dispute resolution before bringing a legal claim – and there can be serious costs consequences if the court feels you have unreasonably not bothered with some form of mediation before rushing to court.
