Exchange Is Not the End, Protecting Sellers From Failed Completions

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If you are selling a property, particularly if you are part of a chain, one of the biggest fears you will have is not whether you can find a buyer, but whether that buyer will actually complete.

Most people assume that once contracts are exchanged, the job is done. In reality, exchange simply moves the risk. If a buyer fails to complete, the consequences can be devastating, especially if you are relying on that sale to fund your onward purchase.

I know what you are thinking, this surely can’t happen very often and you’d be correct. It’s a 1 in 2000 chance. However, in the same way that you don’t buy holiday insurance hoping that you’ll fall ill before a holiday leading you to cancel and claim, you put things in place that will provide you with assurance that you will not be that 1 in 2000.  Being as risk averse as I am, had something been around when I last moved home, I would certainly have given it serious consideration.

Over the years I have spoken to countless sellers who have done everything right, only to have their buyer pull out at the very last moment. Removal vans booked, notice given on rentals, mortgages lined up, and then everything collapses. Yes, the buyer may forfeit their deposit, but that does not always solve the problem, particularly if you still need the full sale price to move on.

This is where a product called ClozeSure fits into a seller’s preparation.

ClozeSure is not about speeding up a transaction or finding a buyer. It is about certainty. It is designed to protect sellers once contracts have been exchanged, ensuring that if a buyer fails to complete, the seller still receives the full agreed sale price.

In simple terms, once contracts are exchanged and the buyer has paid their ten percent deposit, ClozeSure can step in if the buyer does not complete. The buyer’s deposit is forfeited as normal, and ClozeSure purchases the property for the remaining ninety percent. The seller still receives one hundred percent of the agreed price.

I have seen far too many transactions where sellers assume exchange is the finish line, only to discover it is another risk point. ClozeSure removes that particular risk, which can be invaluable if you are part of a chain, buying a new build, relocating, or working to fixed timescales.

What I particularly like about ClozeSure is where it sits in the process. It does not replace good preparation, proper conveyancing, or sensible decision making. It complements them. It is another tool that sellers can use to protect themselves once they have committed.

I often talk about sellers needing to be better prepared, legally ready, transparent, and proactive. ClozeSure fits neatly into that mindset. It is about taking responsibility, understanding where the risks still exist, and deciding whether you want protection in place rather than hoping nothing goes wrong.

This will not be right for every sale, but for sellers who cannot afford a failed completion, either financially or emotionally, it is well worth understanding what is available and discussing it early with your conveyancer and estate agent.

Selling a home is stressful enough without wondering whether the deal will actually complete. Anything that removes uncertainty deserves serious consideration.  Hopefully by the time this episode has been released we will have more information on our website about ClozeSure and how you can get involved.

Thanks for listening to this episode of Moving Home, Uncovered. If you found this useful, subscribe so you don’t miss future episodes, and head over to propertysearchesdirect.co.uk/podcast to send me your questions. I’ll cover them in future episodes to help make moving home a smoother, less stressful experience for everyone.