Coronavirus is causing major issues for people buying homes across the UK, with the government urging home buyers, where possible, to delay moving to a new house while measures are in place to fight coronavirus.
The government are urging all parties involved in home moving 'to adapt and be flexible to alter their usual processes', explaining: 'there is no need to pull out of transactions, but we all need to ensure we are following guidance to stay at home and away from others at all times, including the specific measures for those who are presenting symptoms, self-isolating or shielding. Prioritising the health of individuals and the public must be the priority.'
On 27th March lenders agreed a three-month extension to mortgage offers to help with delays relating to Covid-19. The government said there is no need to pull out of transactions but urged both parties to agree a new date for moving, unless the property is empty. It also said that the police's emergency enforcement powers are exempt for "critical home moves", in the event that a new moving date is unable to be agreed on, however there is clearly a need for further clarity from the government on what counts as a ''critical home move''.
The Law Society has now issued further guidance to Conveyancing Quality Scheme members for using the variation agreement; an agreement which contains optional clauses for use when amending or varying an existing contract. This provides guidance to legal practitioners on how to achieve what clients reasonably want during the covid-19 outbreak if completion cannot take place when scheduled, whilst ensuring public health is a priority. It is clear that 'delay if you can' is the overriding message within the variation agreement guidance, with the provisions requiring 'good faith on the part of all parties.' This update includes guidance on various circumstances such as when contracts have been exchanged but not completed, avoiding penalties, rescission and deferred completion.
Click here to view government guidance on home-buying process.
Click here to view The Law Society's guidance on using the variation agreement.
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