Can I pull out after exchange of contracts?
- Notice to complete legal fee of the other side's solicitor
- Interest
- Penalties under the contract - these differ from seller to buyer.
What can go wrong between exchange and completion?
The risk of either the seller or buyer pulling out are incredibly low, however here are a few examples of what can go wrong between exchange and completion:- either the buyer or seller changes their mind;
- either the buyer or seller was committing a criminal offence;
- the buyer's mortgage offer is pulled or expires and they are unable to secure further finance (this was high risk during COVID and the October 2022 mortgage crisis); or
- death.
The penalties under the contract of exchange
Buyer pulls out after exchange | Seller pulls out after exchange |
|---|---|
Buyer pulls out after exchange 7.4 Buyer's failure to comply with notice to complete 7.4.1 If the buyer fails to complete in accordance with a notice to complete, the following terms apply. 7.5.2 The seller may rescind the contract, and if he does so: (a) he may: (i) forfeit and keep any deposit and accrued interest (ii) resell the property and any contents included in the contract (iii) claim damages (b) the buyer is to return any documents he received from the seller and is to cancel any registration of the contract. 7.4.3 The seller retains his other rights and remedies. | Seller pulls out after exchange 7.5 Seller's failure to comply with notice to complete 7.5.1 If the seller fails to complete in accordance with a notice to complete, the following terms apply. 7.5.2 The buyer may rescind the contract, and if he does so: (a) the deposit is to be repaid to the buyer with accrued interest (b) the buyer is to return any documents he received from the seller and is, at the seller's expense, to cancel any registration of the contract. 7.5.3 The buyer retains his other rights and remedies. |
What is the process to pull out after exchange of contracts?
- 1
Because of the risk of either party pulling out, it is best not to give the buyer access before completion.
Need help pulling out of a purchase contract?
We have specially trained solicitors on hand to help you if you need to pull out after exchange of contracts. If you need help with your exchange contract please email us at help@samconveyancing.co.uk providing the following information:- Your full name and contact number;
- Copy of your exchange contract;
- Confirmation of your reason for pulling out; and
- Any further evidence to support your case.
Upon receipt we will get in contact and provide a quote for the work required. Alternatively, you can call us at 0333 344 3234 (local call rate) or get in touch using the form below:
Example of if a buyer pulls out after exchange:
Here is an example if a buyer pulls out after exchange purchasing a £500,000 property:- Loses 10% deposit of £50,000
- Pays interest of 4% above Bank of England base rate of £770.54 (£450,000 * 6.25% / 365 x 10 days)
- Sellers legal fees of £1,500
In this example it has cost the buyer to pull out after completion £52,270.54.
Andrew Boast FMAAT is a qualified accountant, conveyancing specialist and author with over 25 years of experience in the UK property sector. Since beginning his career in 2000 within established SRA and CLC-regulated conveyancing solicitor firms, Andrew has overseen the legal journeys of more than 75,000 clients.
He is the author of the property guide 'How to Buy a House Without Killing Anyone' and a frequent contributor to mainstream UK media on legislative updates, property law, first-time buyer guides, conveyancing best practices, and stamp duty changes. Andrew specialises in resolving complex title issues, property conflict disputes, and property tax options, streamlining the enquiry process to reduce transaction times and maintaining a client-friendly focus.
Caragh Bailey is a Lead Property Content Specialist at SAM Conveyancing, having joined the firm in 2020. With a portfolio of over 150 technical conveyancing, house survey and mortgage guides, she has become a primary authority on the end-to-end sale and purchase process.
Caragh specialises in complex legal workflows, including Help to Buy redemptions, equity transfers, shared ownership structures, trust deeds for tax planning, and joint ownership disputes. Her expertise extends to leasehold reform and RICS home surveys, where she provides clear, factual guidance on independent legal advice for specialist mortgage products and intricate ownership structures.
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