Few things are more disappointing than hearing that a buyer has decided not to proceed.
After weeks, and sometimes months, of progressing a sale, it can feel like you've gone back to the beginning.
Whilst this can be frustrating, it doesn't always mean the end of your sale. Understanding what happens next can help you make informed decisions and get your move back on track as quickly as possible.
The Short Answer
Until contracts have been exchanged, either the buyer or the seller can usually withdraw from the transaction without legal penalty.
If your buyer pulls out before Exchange of Contracts, your conveyancer will discuss your options with you, and your estate agent can usually begin remarketing the property if you decide to continue selling.
The Explanation
In England and Wales, accepting an offer does not create a legally binding contract.
That only happens when contracts are exchanged.
Before Exchange of Contracts, circumstances can change for a variety of reasons.
For example:
- The buyer's mortgage application may be declined.
- A survey may reveal unexpected issues.
- The buyer's own sale may fall through.
- Personal or financial circumstances may change.
- The buyer may simply decide not to proceed.
Whilst it's understandably disappointing, it doesn't necessarily mean your property won't sell.
If your buyer withdraws, your conveyancer will advise you on the legal position, and your estate agent can discuss remarketing the property or progressing with another interested buyer if one is available.
Sometimes transactions recover surprisingly quickly, particularly where there are other prospective buyers.
Common Questions
Will I lose my legal fees?
Some legal work will already have been carried out, so fees may be payable depending on how far the transaction has progressed and the terms of your agreement with your conveyancer.
Your conveyancer will explain the position to you.
Can I accept another offer straight away?
Yes.
If another buyer is available, you can usually proceed with them, subject to the usual conveyancing process.
Do I have to complete all the forms again?
Usually not.
In many cases, the information you've already provided can be used again, although it may need updating if circumstances have changed.
Can the buyer pull out after Exchange of Contracts?
Exchange of Contracts is the point at which the transaction becomes legally binding.
If a party fails to complete after Exchange, the legal consequences are very different.
Top Tip
If your estate agent tells you there's interest from other buyers, don't assume it's bad news.
Having reserve interest can sometimes help if circumstances change before Exchange.
Did You Know?
Many sales that fall through before Exchange are successfully resold, sometimes to buyers who had previously viewed the property.
Common Misconception
"If my buyer pulls out, I've got to start everything again."
Not necessarily.
Whilst a new buyer will need to carry out their own legal investigations, much of the work you've already completed—such as your property forms and supporting documents—can often still be used.
The MA Lawyers Approach
At MA Lawyers, we know how disappointing it can be when a buyer withdraws.
If it happens, we'll explain exactly where your transaction stands, advise you on any legal implications and work with you and your estate agent to help get your sale moving again.
Our aim is to minimise disruption wherever possible so that, if you're ready to continue selling, you're in the best possible position to move forward.
Related Articles
- Why Is My Sale Taking So Long?
- What Enquiries Will the Buyer's Conveyancer Raise?
- When Will I Receive My Sale Proceeds?
- What Is Exchange of Contracts? (Buying a Property)