Delays can be all too common when buying or selling a house. Searches, surveys, title defects – they can all take time to resolve. But when a dispute arises in connection with a house sale, it can feel a lot more serious and uncertain.

If you’re a buyer, property dispute delays can put your plans under pressure. You might face increased costs from renting and storage while you wait, affecting budgets you’ve made. And on top of all that there is personal strain of feeling stuck in conveyancing limbo.

If you’re a seller, you can face similar distress and financial difficulties. But delays can also affect the attractiveness of the property you’re selling. If you are forced to find a new buyer, people might make negative assumptions about a property which has been on the market for a long time.

What kinds of property dispute can cause delays?

Some examples of disputes which can delay a house sale are:

  • Boundary disputes – involving issues over whether a piece of land belongs to a property. This can also include claims of adverse possession.
  • Party wall disputes – which concern obligations about a shared boundary between two properties
  • Construction disputes – particularly where a new-build house is involved. This might include contractual issues and work that is not up to required standards.
  • Right of way disputes – involving access to a property. These can occur particularly when there has been a change to a long-standing arrangement.

Unfortunately, you do not even have to be a party to a property dispute for it to delay your house sale or purchase. If another party is in dispute with the buyer or seller of your property, delays can follow.

What practical steps can you take?

Although you can sometimes feel powerless when faced with a property dispute delay, being proactive can help you to take back some control of events:

  1. Firstly, discuss the matter with your conveyancer to understand the cause of the delay. This way, you can get a clear picture of what you can and can’t do to help resolve it.
  2. Secondly, be proactive in providing any information your conveyancer needs so that you can be sure nothing in the dispute is waiting on you.

Can I take any legal action for a delay?

For serious delays to the completion date of your transaction, it may be possible to take legal action against the other party if the delay is their fault.

Most house sales in the England and Wales use the Standard Conditions of Sale (SCS) as a basis for the contracts involved. These contain terms which may be used as the grounds for legal action for serious delays. However, it is important to be aware that the SCS can be amended – or not used altogether – in a sale contract, so you should always check with your conveyancer as to what terms may apply with your particular sale or purchase.

The ability to take legal action depends primarily on whether contracts have been exchanged between you:

  • If contracts have been exchanged: you may be able to send the other party a ‘notice to complete’. This gives them 10 working days to fix any issues and complete the sale. If they fail to do so, you may be able to claim compensation and other remedies.
  • If exchange of contracts has not yet taken place: you will not be able to claim compensation (or other remedies) as, until contracts are exchanged, neither party is legally obliged to continue with the transaction. It will be up to you as to whether you walk away from the sale or purchase, but you can still proceed and renegotiate another completion date if you and the other party are willing.

What compensation or other remedies could I claim?

Under the SCS, the following remedies for delayed completion may be available to you:

  • If you are the buyer, these remedies are:
    • Withdrawing from the contract
    • Recovering your deposit, with interest
    • Recovering compensation for losses you have incurred
    • Undoing the registration process at the seller’s expense
    • Suing for specific performance – i.e. seeking a court order forcing the seller to complete the sale
  • If you are the seller, the remedies which may be open to you are:
    • Withdrawing from the contract
    • Keeping the buyer’s deposit. If this was less than 10% of the sale price, the buyer must pay up to 10%
    • Recovering compensation for additional losses you have incurred over the amount of deposit
    • Suing for specific performance – i.e. seeking a court order forcing the buyer to complete the purchase

Legal support from Ison Harrison

Having the right conveyancers and legal support in place is crucial in all property sales and purchases, but even more so where property disputes arise.

Ison Harrison’s specialist lawyers can help you every step of the way, using our years of experience to proactively resolve any issues you may encounter.

Contact us today, if you would like our assistance with a sale or purchase, or any disputes concerning one.