Can a seller back out after exchange of contracts?

If you are buying or selling a property, the transaction is not legally binding until contracts have been exchanged. Before exchange can take place, the buyer and the seller will be required to each sign a copy of the contract, agree a completion date and the buyer will pay in the deposit to their solicitor. 

Following this, the solicitors will formally exchange contracts and the deposit will be sent to the seller’s solicitor, after which the contract becomes legally binding on both the seller and the buyer.

The seller can decide to back out after exchange has taken place however doing so will mean they have breached the terms of the contract which will result in additional costs payable. 

From this point, the buyer will be able to issue a notice which requires the seller to complete within 10 days. The seller will have to pay interest at a daily rate to the buyer, as well as having to return the buyer’s deposit. 

If you would like any further information or advice in relation to buying or selling a property, please contact us on 01384 410 410 or send an email to residentialconveyancing@georgegreen.co.uk. You can also get a free quote by using our conveyancing quote tool on our website.