UK only Can a property be repossessed if the seller has already exchanged contracts with the buyer?

Answer 1

In an repossession the property is only going to be sold on the open market, so if there is a contract for a sale, then there is no use in getting a repossession order unless the property is being sold to a connected person under the insolvency act 1986. there are anti avoidance provisions, so any preferential transaction can be clawed back if it does within the last 5 years, if at the time it would have been reasonable for the person to forsee insolvency.

Firstly repossession is a lengthy process, it is likely that in such a case the mortgagee will put a unilateral notice to stop third party dealings so i think its not very possible for it to repossessed in the typical time that it takes for these transactions. Usually there need to be 3 months arrears before the s.101 law of property act 1925 can be effective.

Answer 2

Banks are very often stupid when it comes to this, if contracts are exchanged they will need to seek a court order to sell the property. If it has got to this point they should already know this and not bother throwing their weight around but with most large companies it's a case of no communication within and a severe lack of common sense!

The bank should be told if they have not already and they should come around but it all depends on how long there is between the exchange and completion dates, providing it is not something silly like a few months they would benefit from allowing it to run it's course. If they were to still insist it should be pointed out theat they would unreasonably be holding matters up since a new buyer would need to be found and the whole process started over again. It would also double any conveyancing fees.

Your solicitors should be able to sort it though.

Answer 3

Yes. But it can only be repossessed by Court order, and a Court is most unlikely to give one if a sale is imminent.

Answer 4

if monies have been exchanged then the property is yours by law, they can reposess the money but not the property