Most property sales in England and Wales complete without serious difficulty. When a house sale does fall through, however, the cause is rarely dramatic. More often it is an issue that existed from the outset and came to light at the worst possible moment, usually after an offer has been accepted and the buyer’s solicitor has begun their enquiries.
The encouraging news is that most of the legal reasons a sale collapses can be identified before a buyer is involved.
1. Missing Building Regulations Approval
Extensions, loft conversions, removed internal walls and garage conversions are common sources of delay, particularly where the work was carried out years ago or by a previous owner and there is no completion certificate to confirm it was signed off. Once the buyer’s solicitor raises the point, the buyer’s mortgage lender will often take an interest, and the sale can stall.
What sellers can do
- Where documentation is missing, an indemnity insurance policy can often resolve matters quickly; alternatively, retrospective approval (regularisation) from the local authority provides a permanent solution.
- Seek advice before contacting the council, as approaching the local authority can make an indemnity policy unavailable.
- Let your conveyancer know about any work carried out, even if you are unsure whether consent was required.
2. Title defects
Problems with the legal title are a frequent cause of conveyancing delays. Typical examples include unrecorded rights of way, breached restrictive covenants, boundaries that do not match the title plan, and land that has never been registered at HM Land Registry.
What sellers can do
- Instruct a conveyancer early so the title can be reviewed before a buyer is found.
- Tell your conveyancer about anything shared with a neighbour, such as a driveway, a drain or a jointly maintained boundary.
- Most title defects can be resolved; they simply require time, which is in short supply once a buyer is waiting.
3. Leasehold delays
Management for leasehold properties, the management pack supplied by the freeholder or managing agent can take several weeks to arrive, and there is limited scope to speed up the process. A short remaining lease term can also make a property difficult for a buyer to mortgage.
What sellers can do
- Request the leasehold management pack on the day the property is listed.
- Check the remaining lease term before marketing, particularly if it is approaching 80 years.
- Resolve any service charge arrears or disputes before they appear in the management pack.
4. Survey findings
A buyer’s survey may identify damp, structural movement, roof defects or outdated electrical wiring. The buyer may then request a price reduction or reconsider the purchase altogether.
What sellers can do
- Remember that the decision is yours: you are under no obligation to reduce the price or carry out works.
- If you are already aware of a defect, obtain a quotation before marketing. A builder’s estimate is a far stronger response than a surveyor’s worst-case assessment.
- Consider addressing any obvious issues in advance.
5. Down-valuations
A down-valuation occurs when the buyer’s lender values the property below the agreed purchase price. The buyer must then make up the shortfall, renegotiate or withdraw.
What sellers can do
- Set a realistic asking price from the outset, supported by genuine comparable sales evidence.
- If a down-valuation occurs, ask your estate agent to provide comparables to support a challenge. Not every challenge succeeds, but some do.
- Consider whether flexibility on the price or completion date could help the buyer bridge the gap.
6. Chain difficulties
When a transaction elsewhere in the chain fails, the effect can be felt by every party connected to it.
What sellers can do
- Be ready to exchange contracts as soon as everyone else is. Chains are most vulnerable during long periods before exchange.
- Keep your estate agent and conveyancer informed of any developments you hear about elsewhere in the chain.
- Consider whether a chain-free buyer, even at a slightly lower price, offers greater overall value.
7. Unexpected Administrative Delays
Some delays arise from circumstances nobody anticipated: a signatory who is abroad, a forgotten second charge registered against the property, or a name on the title that no longer matches the seller’s identification following a marriage or divorce.
What sellers can do
- Tell your conveyancer early about anything that may be relevant, even if you are unsure whether it matters.
- Let your conveyancer know about holidays, appointments or anyone who may be difficult to reach.
- Disclose any loan or charge secured against the property in addition to your main mortgage.
Preventing Your House Sale from Falling Through
Almost every issue above can be identified before a buyer is involved, and each is considerably easier to resolve at that stage. That is the strongest argument for starting the legal work early rather than waiting for an offer.
Our Sale Ready service, provided at no cost, prepares your legal pack before a buyer has been found. Any issues requiring attention come to light while there is still time to deal with them calmly, helping to reduce the risk of your sale falling through.
Get in touch today to discuss selling your home.
