What Happens if Completion is Delayed by a Buyer?
You’ve exchanged contracts, packed your belongings, and even booked the removal van. You’re ready to move. But then the buyer wants to delay completion. What now?
Selling your home is stressful enough without unexpected hiccups, and with transaction timelines getting longer, what happens if completion is delayed by buyer is a more common – and urgent – question than ever. Let’s walk through why delays happen, what your rights are as the seller, and how to protect yourself from future complications.
What is completion day and why is it crucial?
Completion day marks the official transfer of legal ownership from the seller to the buyer. On this day:
- Funds are transferred.
- Keys are handed over.
- The buyer becomes the legal owner.
Once contracts have been exchanged, both parties are legally committed to the transaction. The completion date is locked in, and the buyer delaying completion date can have real consequences.
So, can the buyer delay completion date? Yes, technically. However, there are contractual and financial implications.
Why might a buyer delay completion?
There are several reasons why a buyer wants to delay completion. Some are within their control, while others are due to external circumstances.
1. Mortgage funding delays
Even with an approved mortgage, delays can happen if:
- The lender hasn’t released funds.
- Extra checks are needed.
- Administrative errors occur.
2. Legal hold-ups
The buyer’s solicitor might be dealing with:
- Incomplete property searches.
- Unresolved title issues.
- Delays in document preparation.
These issues can affect completion timelines through no fault of the buyer.
3. Property chain disruption
If your buyer is part of a chain, any delay elsewhere (such as their own buyer backing out) can have a domino effect, resulting in the buyer delaying completion date.
4. Sudden personal issues
Sometimes life intervenes. A buyer wants to delay completion due to:
- Illness or bereavement.
- Financial hardship.
- Job loss or relocation.
These factors can create unavoidable, last-minute delays.
What happens if completion is delayed by the Buyer?
If your buyer delays completion, several things may happen, but some of which can work in your favour.
Penalty interest may be owed
Your contract most likely includes a daily interest penalty on the purchase amount, which is typically 4% higher than the Bank of England base rate. This compensates for the inconvenience and financial disruption.
Notice to complete can be served
If the buyer doesn’t complete as agreed, your solicitor can issue a Notice to Complete, usually giving them 10 working days to follow through.
But this step can only be taken if you’re “ready, willing, and able” to complete:
- All your paperwork is finalised.
- You’re ready to vacate the property.
- Your solicitor is prepared.
If you’re not in that position, the notice isn’t enforceable.
Additional out-of-pocket costs
You may face costs like:
- Storage fees.
- Mortgage repayments.
- Temporary accommodation.
- Delays in your onward purchase.
Make sure you keep receipts and notes; you may be able to recover these costs if the buyer delaying completion date is clearly at fault.
What if the buyer still doesn’t complete?
If the buyer still doesn’t complete after receiving a Notice to Complete, they are in breach of contract.
You can terminate the contract
As the seller, you can:
- Terminate the sale.
- Keep the buyer’s deposit (typically 10%).
This financial penalty acts as compensation and lets you relist the property without further delay.
While it’s frustrating, this puts you back in control.
Can the buyer delay the completion date without penalty?
Only with your agreement. Otherwise, if the buyer wants to delay completion for reasons not covered by the contract or fails to complete by the agreed date, they are in breach. At that point:
- Penalties apply.
- You may serve notice.
- The contract can be cancelled.
In short, a buyer can postpone the completion date, but not without consequences if you’re ready to proceed.
How to avoid buyer-led completion delays
The best way to deal with a buyer delaying completion date is to prevent it altogether. Here’s how:
Confirm buyer’s financial position
Before exchanging:
- Ensure the buyer has a mortgage offer in place.
- Check their lender has completed necessary checks.
Instruct an experienced conveyancer
Choose a solicitor with proven experience in:
- Managing chains.
- Avoiding paperwork delays.
- Communicating clearly with the buyer’s team.
Stay in regular contact
This means proactive communication between:
- You.
- Your solicitor.
- The buyer’s solicitor and agent.
This avoids assumptions and keeps everyone aligned on timelines.
When it makes sense to delay exchange yourself
If you suspect the buyer isn’t ready, you could request a pause before exchanging contracts. While it delays the process slightly, it gives everyone time to get their ducks in a row.
Delaying exchange can:
- Reduce the risk of post-exchange issues.
- Encourage the buyer to sort funding or legal issues.
- Protect you from costly cancellations or penalties later.
However, do this only with solicitor input to ensure it won’t backfire.
Want to avoid the risk entirely? Use a cash house buyer
If you’re tired of worrying about the buyer delaying competion, maybe it’s time to ditch the risk.
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- Buy your property directly for cash.
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