Once contracts have been exchanged, the buyer is legally committed to paying the price stated in the contract.
If the buyer pulls out of the sale after contracts were exchanged, you can sue them for any loss this causes you and you may be able to keep the deposit.
You will need to get legal advice.
What happens if a seller pulls out after exchange of contracts?
If a buyer pulls out after exchange of contracts, then the seller can rescind the contract and keep any deposit paid. They can also resell the property and claim damages.
How much do you lose if you pull out after exchange?
The side which has served Notice to Complete can rescind the contracts. This is the point where, if it is the buyer who has defaulted, they stand to lose the full 10% of the selling price. So the seller can automatically take the whole of all the deposit paid over.
Can bank pull out after exchange?
Can a mortgage offer be withdrawn after exchange of contracts? The reality though is that the mortgage lender can withdraw their mortgage offer after exchange of contracts and all the way up until completion leaving you to bear the costs of failing to complete.
What happens if you don’t complete after exchange?
The standard conditions provide that if the buyer fails to complete after a notice to complete has been served, the seller may rescind the contract, and, if the seller does so, it may forfeit and keep the deposit and accrued interest.