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A buyer has exchanged contracts for the purchase of a freehold house. The completion date in the contract is five days after exchange (‘the Date’).
The day after exchange of contracts, the buyer informs her solicitor that she cannot obtain the funds required to complete her purchase for another two weeks.
The contract incorporates the Standard Conditions of Sale (Fifth Edition - 2018 Revision) (SCS) with no relevant special conditions.
The buyer seeks advice as to her position under the contract, given that she cannot complete on the Date.
What advice should the buyer be given?
A. The SCS will substitute 15 working days after exchange of contracts as the new completion date (time being of the essence) after which the seller may resell the house if completion has not occurred by then.
B. The SCS will substitute 20 working days after exchange of contracts as the new completion date (time being of the essence) after which the seller may give the buyer a notice of rescission and claim damages if completion has not occurred by then.
C. The SCS provide that time is of the essence so the buyer will have until 6pm on the Date to complete, failing which the seller will be entitled immediately to rescind the contract and claim damages.
D. The SCS provide that time is not of the essence and the seller will be entitled at any time after 2pm on the Date to forfeit and keep the deposit and accrued interest but may give the buyer a further five working days to complete (time being of the essence).
E. The SCS provide that time is not of the essence and the seller will be entitled at any time after 2pm on the Date to give the buyer a notice to complete which makes time of the essence and gives ten working days for completion.
E - The SCS provide that time is not of the essence and the seller will be entitled at any time after 2pm on the Date to give the buyer a notice to complete which makes time of the essence and gives ten working days for completion.
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Find out what happens after passing the SQE and admission to the roll of solicitors.