What began as a straightforward chain completion took an unexpected twist, involving a banking fault, an “illegal” occupation, and some extremely difficult conversations. Yet thanks to calm heads, cooperation from all parties, and a determination to find a solution, the chain not only survived but reached a fair and lawful conclusion. This is the story of how it happened.
Understanding the Chain: Exchange and Completion
For anyone not familiar with the terminology, property transactions in Gibraltar follow a two-stage process: exchange of contracts and completion.
At exchange, the sale becomes legally binding. Both buyer and seller commit to the transaction, with penalties for pulling out.
At completion, the money changes hands and the buyer becomes the legal owner. Only once completion has taken place should keys be released and occupation begin.
In a property chain, multiple transactions are linked together. Each buyer is also a seller in the chain, except for the first-time buyer at the bottom and the final seller at the top. A delay or fault in one link can impact everyone.
This system works remarkably well most of the time - but when something goes wrong, the consequences can be significant.
The Day Everything Looked Fine
In our recent case, all properties in the chain had exchanged contracts a week before the scheduled completion date. That meant each party was committed and, in theory, ready to move on the big day.
On the morning of completion, we were informed by the middle solicitor in the chain that contracts had indeed completed all the way through. Naturally, this was the green light we needed to release keys. After all, buyers and sellers had vans packed, families were waiting, and emotions were running high.
At Richardson’s, we pride ourselves on doing everything we can to ensure smooth transitions. With confirmation from the solicitor and no reason to doubt the process, we promptly released keys for both properties involved. At that moment, everyone thought they were embarking on the next chapter of their lives.
The Shock Nobody Expected
A week later, the phone rang with news that made our hearts sink. The funds that had been transferred to the solicitor at the top of the chain, had never actually cleared. A fault at the bank had meant the money simply wasn’t there.
This meant that, legally, completion had not taken place on one of the properties - even though the buyer was already living in their “new” home. In other words, someone was occupying a house without owning it.
The implications were huge. Panic rippled through the chain. Buyers and sellers who had already endured the emotional strain of moving now faced the possibility that their transactions might unravel.
Crisis Management in Action
The first priority was to establish the facts. We contacted the solicitors involved, who confirmed that the missing funds were indeed due to a banking failure, not a fault on the part of any buyer or seller. While that brought some reassurance, the situation remained precarious.
Next came the most difficult part: speaking with the buyer who was already in the property but, legally speaking, had no right to be there. Understandably, they were shocked and distressed. They had packed up their old life, moved their belongings, and believed they were the rightful owner. The thought of being asked to hand the keys back was overwhelming.
Nevertheless, the law had to be respected. We explained the situation with honesty and compassion, making clear that nobody was accusing them of wrongdoing. With great reluctance, they returned the keys, demonstrating remarkable cooperation in an incredibly stressful moment.
A Collaborative Resolution
Once the buyer had stepped back, attention turned to resolving the root cause: the missing funds. Here, the seller’s solicitor played a vital role. In an impressive display of professional commitment, they gave an undertaking - a legal promise - to return the first payment if it ever did clear. This undertaking provided the security needed for the bank to step in and make the payment directly themselves.
That intervention proved decisive. With the bank covering the failed transfer and the solicitor’s undertaking offering protection, the transactions were able to move forward. Contracts could complete in the proper legal sense, and the buyer could finally, and legitimately, receive the keys to their new home.
The Human Side of the Story
What struck us most throughout this episode was the resilience of everyone involved.
The buyer, who endured the shock of being told they didn’t legally own the house they were living in, showed incredible patience and trust.
The seller, suddenly faced with uncertainty, remained calm and supportive of efforts to resolve the issue.
The seller’s solicitor, who provided the vital undertaking, deserves particular thanks for helping to unlock the stalemate.
And the wider network of solicitors, agents, and even the bank all worked together under pressure to put things right.
It’s easy, when dealing with property, to think of houses purely as assets and transactions. But behind every exchange and completion are real people, with hopes, plans, and emotions tied to their move. This experience highlighted just how important it is to treat those human factors with care.
Lessons Learned
While such cases are rare, they underline several important lessons for professionals and clients alike:
Communication is everything. Even when a solicitor gives confirmation, it pays to double-check at each stage.
Banks are not infallible. While faults like this are unusual, they can and do happen. Systems must allow for human oversight.
Professional cooperation saves chains. Without the seller’s solicitor’s undertaking, and without the buyer’s willingness to hand back keys temporarily, the chain could have collapsed.
Estate agents play a vital role. Managing expectations, delivering difficult news, and keeping everyone moving forward is not for the faint-hearted.
A Successful Ending
In the end, the chain did complete. The buyer moved into their new home - this time with full legal rights - and all parties could finally breathe a sigh of relief. What might have been a disaster became a success story, thanks to a combination of professionalism, cooperation, and determination.
At Richardson’s, we take pride in guiding our clients through the most challenging situations. While we never want anyone to face this kind of stress, our role is to make sure that, whatever obstacles appear, the journey to a new home doesn’t end in disappointment.
To the seller’s solicitor, the buyer, and the seller, we extend our sincere thanks. Your patience, trust, and professionalism were instrumental in bringing this complex situation to a positive conclusion.