Advice required please

[Baggie Mon]

Does anyone know who is responsible for what once contracts have been exchanged for a house sale? We are due to move next Wed (May 1st) having exchanged on Thurs 18th April. Having requested final settlement bills for all Utilities, we have received a large Water bill today, which we queried. It turns out we have a leak, on our property, between meter and the mains stopcock. The wife cancelled the Homeserve Insurance, covering all leaks, last week. Sod’s law I know. Will we be liable for any repairs or will the new buyers, as the problem was only identified today? 
Can’t find any answers online.

Cheers in advance

[coxy134]

I work for a water company, (though not on drinking water), however pretty sure if the leak is between stop cock and meter then its water company problem?

Unless you mean the leak is AFTER meter?

[Kit Kat Chunky]

In terms of insurance, they should insure on exchange, because they are contracted for purchase.

[Baggie Mon]

Yes, looks like leak is after the meter. Turned main stopcock off and meter is still running.Would be our responsibility if we were staying in the house but I just wanted to know if we were still liable as the exchange of contracts for the sale were before we discovered the problem. Also, if we could prove the leak was happening before we cancelled the insurance, could we still claim?

[Swagbaggie]

I am fairly sure that if the leak is within your boundary it is the responsibility of the home owner. That's what the Homeserve Insurance says in their bumph. I think mate that you are the homeowner still. You could withdraw tomorrow if you wanted and is regularly done when people get cold feet. The property is still yours until the funds are in your bank. I suspect you are liable.
You risk them withdrawing and collapsing the chain too I would guess.

[Baggie Mon]

I am fairly sure that if the leak is within your boundary it is the responsibility of the home owner. That's what the Homeserve Insurance says in their bumph. I think mate that you are the homeowner still. You could withdraw tomorrow if you wanted and is regularly done when people get cold feet. The property is still yours until the funds are in your bank. I suspect you are liable.
You risk them withdrawing and collapsing the chain too I would guess.

Can they withdraw now that contracts have been exchanged? Also, and I’m clutching at straws, could the Surveyor not be held accountable for not picking up the issue? I didn’t want to move anyway. Moving from Kent back up to the Midlands for work reasons.

[Swagbaggie]

I am fairly sure that if the leak is within your boundary it is the responsibility of the home owner. That's what the Homeserve Insurance says in their bumph. I think mate that you are the homeowner still. You could withdraw tomorrow if you wanted and is regularly done when people get cold feet. The property is still yours until the funds are in your bank. I suspect you are liable.
You risk them withdrawing and collapsing the chain too I would guess.

Can they withdraw now that contracts have been exchanged? Also, and I’m clutching at straws, could the Surveyor not be held accountable for not picking up the issue? I didn’t want to move anyway. Moving from Kent back up to the Midlands for work reasons.

I have a mate who is an Estate agent. I think he bangs on about it is never completed till the money is in the bank hence the holding of keys however I do not know if there is consequences for this like loss of a deposit etc. I could ring him if you like.

Edit. I just spoke to him. After Exchange they can withdraw but not easily. They will probably lose the deposit to you if they cannot show reasonable grounds.
You can also sue for costs incurred on your behalf.
He said the leak and your lack of knowledge about it complicates things and he said makes it less straightforward. Solicitors would possibly refer to ombudsman.

[Baggie Mon]

I am fairly sure that if the leak is within your boundary it is the responsibility of the home owner. That's what the Homeserve Insurance says in their bumph. I think mate that you are the homeowner still. You could withdraw tomorrow if you wanted and is regularly done when people get cold feet. The property is still yours until the funds are in your bank. I suspect you are liable.
You risk them withdrawing and collapsing the chain too I would guess.

Can they withdraw now that contracts have been exchanged? Also, and I’m clutching at straws, could the Surveyor not be held accountable for not picking up the issue? I didn’t want to move anyway. Moving from Kent back up to the Midlands for work reasons.

I have a mate who is an Estate agent. I think he bangs on about it is never completed till the money is in the bank hence the holding of keys however I do not know if there is consequences for this like loss of a deposit etc. I could ring him if you like.

Edit. I just spoke to him. After Exchange they can withdraw but not easily. They will probably lose the deposit to you if they cannot show reasonable grounds.
You can also sue for costs incurred on your behalf.
He said the leak and your lack of knowledge about it complicates things and he said makes it less straightforward. Solicitors would possibly refer to ombudsman.

Thanks for the info. We’ve got to speak to our Solicitors in the morning. Another person has also said our buyers should have taken out Insurance when the contracts were exchanged, so it could be their problem and not ours. Nothing ever runs smoothly, does it?

[Kit Kat Chunky]

If you have exchanged, then you put the purchaser on notice if they fail to complete. You then sue them for breach of contract if they don't complete 14 days after notice 

It is up to the purchaser to satisfy themselves on the property. A survey wouldn't pick this up, but if it did, it would be yo advise them and their funder, not you.

What is to stop you just paying the water bill - which you will have to do anyway, and moving out? I know it is underhand but the first they will know is on their initial bill.

[Mouse]

Don't post often however can the water company give any idea when leak may have started as if it was before the cancellation of the policy you still maybe able to claim especially if you have not received s full refund. The policy with homeserve should cover incidents etc from inception until date the policy was cancelled.

Worth asking the question