What Happens if a Sale Falls Through? Your Legal Rights and Next Steps
It’s one of the biggest frustrations for buyers and sellers: a property sale that collapses before completion. Unfortunately, it’s not uncommon in England and Wales, where agreements aren’t legally binding until contracts are exchanged. But what exactly happens when a sale falls through, and what can you do next?
Why Do Sales Collapse?
There are many reasons a sale might fall through: - The buyer pulls out due to survey results. - Mortgage finance is refused. - A chain breaks down elsewhere. - Cold feet or a change in circumstances.
Who Bears the Cost?
Until contracts are exchanged, neither party is legally bound to go through with the sale. This means buyers and sellers may both lose money spent on surveys, searches, or legal fees if the deal falls apart.
Gazumping and Gazundering
A sale may also collapse if another buyer offers more money (gazumping) or if the buyer tries to lower their offer at the last minute (gazundering). These tactics, while frustrating, are legal under current rules.
Can You Protect Yourself?
Although you can’t completely remove the risk, you can: - Instruct a solicitor early. - Keep communication open with the other side. - Consider a lock-out agreement in some cases.
What Happens Next?
If a sale falls through, your solicitor can help you quickly relist the property or move forward with another purchase. Although disappointing, it doesn’t mean the end of your home-moving plans.
Summary
Fallen-through sales can be upsetting, but understanding your legal position helps you recover more quickly.
At Edward Hands & Lewis Solicitors, we’re here to guide you through the ups and downs of the conveyancing process, always keeping your best interests at heart.
Contact EHL Solicitors:[Text Wrapping Break]Visit: www.ehlsolicitors.co.uk[Text Wrapping Break]Call: 0115 955 3444[Text Wrapping Break]Email: info@ehlsolicitors.co.uk
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The information contained in this article does not constitute financial advice or recommendation and should not be considered as such. Edward Hands and Lewis 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.
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