If contracts have not yet been exchanged, then parties may agree to incorporate a suitable clause into the contract to deal with any ongoing risks caused by the coronavirus. 

If contracts have already been exchanged and a completion date has been finalised, but for some reason relating to coronavirus either party cannot complete on the specified date (for example, the house you are purchasing is occupied by people who are self-isolating), then it may be possible for both parties’ solicitor to agree to defer completion to a later date.  

To defer the completion date, the solicitors will need to draft a Variation Agreement to defer the date and avoid the defaulting party having to pay interest or compensation to the other party as a result of delay. It will be possible for both parties to authorise their solicitor to sign the document as an agent on their behalf to avoid physical contact.

If you are purchasing with a mortgage you should check whether you will need written confirmation from your lender to agree to the extension, although most lenders have generally agreed to extend mortgage offers by three months.

The Variation Agreement is only intended to defer the completion date; the other terms within the contract are still legally binding on both buyer and seller and therefore this will only be an option where both parties are still able to complete the transaction. If for example, a buyer can no longer afford to buy the property because the lender has withdrawn the mortgage offer, or a seller can no longer complete the sale because the property they were simultaneously purchasing has fallen through, then the original terms of the contract will have been breached.

Consideration should be taken by all parties involved and any agreement will need to be carefully drafted in light of these unprecedented circumstances. Each situation is likely to have different implications and a different outcome.

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.