‘Work to Completion’, and other idiocy

This might be a long one, but, if you fancy learning some key points, some key facts, and therefore gain knowledge about how this godawful process should unfold. Read on.

The last couple of weeks have highlighted once again how the public get shafted by the ‘professionals’ when simply attempting to experience the joy of purchasing, and then moving into their new home.

One element that has come to light this week has been the emergence of the sentence ‘we don’t work to exchange, we work to completion’. Trotted out not by estate agents, but by the very individuals who should, by default, by training, know the stupidity of such a deliberately misleading and downright dangerous strategy.

Lets clear one point up.

Exchange of Contracts is the only, and first moment you know you’ve actually sold, and/or bought your new home. Up until that moment any party can pull out, change the terms, change the price, or indeed choose to sell to somebody else.

Therefore, ‘work to completion’ is saying – We’ll work to a completion date, hope to be ready to exchange contracts by that, or indeed on that date. Which does of course mean that for the poor member of the public they’re expected to plan, hope, dream, prepare and schedule for a move that they have absolutely no idea will actually happen, on that date, or indeed at all.

Indeed if we examine the aspects and people involved you might note that the proponants of such a strategy have absolutely nothing to lose should the date not be met. It is misdirection and obfuscation of the highest order. The client will have been made aware, either directly or via documentation received that they should not plan, book, nor pay for anything until contracts have been exchanged.

In fact, if you're well into the process feel free to play the game of calling your solicitor and asking, 'when should I book and pay the deposit to the movers?' (or substitute for 'arrange Sky Tv, broadband, change doctors, start arranging change of address etc). You'll get the response 'not until you've exchanged'. Follow up with 'And what timeframe between exchange and completion are you guaranteeing me?' I'll bet theres a pause....then waffle...with no concrete answer.

This practice further gives free license for woeful service by conveyancers while absolving themselves of any responsibility for any costs, stress or hurt, or indeed massive inconvenience caused by failing to meet the very ‘target’ they themselves not only set but allowed their client to believe in.

This is why we educate our clients to remove from their minds any and all talk of completion dates until all parties in the chain have confirmed they are ready to exchange. Indeed a completion date does not even need to be spoken about or negotiated until this point. The entire process is set up to create stress, failure, inconvenience and wasted costs unless this particular approach is taken.

Yet this week, one of our customers was effectively, in her words 'told off' by her conveyancer for saying 'But isn't it exchange I should focus on?' . The repsonse was, so she told this author 'I work to completion, not exchange!' Now this customer isn't stupid, and promptly rang here both amused and angry and described her conveyancer as a 'recalcitrant, obstructive idiot', following up with 'but I'm stuck with her now'.

It’s why we say to demand a minimum period inbetween exchange and completion, nice and early. Then sit back and say ‘if we target exchange, then I already know when completion is. It’s ‘x’ days later, there or thereabouts.

Indeed, as default within the Law Society’s standard contract this period is set at 20 working days…by default.

Let me make very clear what I wrote above. Up until exchange anybody can choose to do anything. Nothing is certain, nothing is fixed. Yet your conveyancer, and often estate agent will allow, coach and even recommend to you, at your risk, not theirs that you have little time between the two, or even simultaneously exchange and complete. Which is to actively promote and enable the practice of gazundering/price chipping. let alone demand that you prepare to move with naff all notice for certain that it won’t fall through.

We’ve even known conveyancers in the same telephone conversation advise clients not to pay money or book removers until exchange,and then go on to promote the possibility of simultaneous exchange and completion….The stupidity, literally, has no adequate words. In this instance are they proposing the client doesn’t pack, doesn’t prep, doesn’t book a mover until late the very morning they’re supposed to move out, and by 1pm!!!!?

This, this is the dumb level conveyancing has sunk to.

Theres a good chance your Solicitor or Conveyancer (not the same thing, there's a :cough: degree of difference bewteen the two) will be following these protocols - https://www.lawsociety.org.uk/topics/property/conveyancing-protocol (you can open/download at this link).

Head to page 24. You’ll note that at the point of signing the contracts it is advised to discuss completion dates, and start the process of date negotiations.

Indeed;

‍

'Agree the completion date and time. Ensure that the buyer is aware of the binding nature of the commitment. Check the proposed date with the buyer and the buyer’s chain to see if it is agreed. Tell the seller’s conveyancer.'

‍

Not at the moment the offer is accepted, not after the survey is done. Indeed not while there are queries outstanding. At the moment when there is enough confidence to sign the contracts, which is, of course right before exchanging.

You’ll also note that it is at this stage we see ‘Ensure that the buyer is aware of the binding nature of the commitment’.

Because it simply isn’t binding yet!

And yet, I refer you back to where we began this post. The very individuals who are supposed to focus on ensuring...... (from page1 of the protocols)

‍

'The key to reducing stress in a transaction is to manage the client’s expectations; to do this you should be taking instructions on matters that could affect the chain (e.g. are parties separating, are they first time buyers, are their circumstances likely to change soon?). It is important to engage proactively with the client when getting your initial instructions. Clients may have been given unrealistic expectations by an estate agent or others about the conveyancing process or the timeframes and they maybe unaware of the competing interests; you should engage with those expectations upfront and, where necessary, reset them.

There are many uncertainties in any conveyancing transaction and you cannot be definitive at the beginning of the process. Youneed to manage your client’s expectations at the start and throughout the transaction.

Solicitors are bound by professional obligations to their clients throughout the transaction. A solicitor is required to act in the best interests of each client and those obligations will take precedence over this Protocol'.

‍

Does refusing to discuss the significance of exchange of contracts, refusing to provide and plan for a proper timetable for your client, one that creates reasonable hope, and less stress sound like this is being adhered to?

Does refusing to educate your client properly, and act for them in a manner that allows them to adequately prepare, with surety, and confidence,sound like this is being adhered to?

Like I said earlier,

This, this is the dumb level conveyancing has sunk to.

 Good Luck,

Matt

matt@mgtr.co.uk

‍