Q We have been trying to sell our flat, but two buyers backed out during the Covid-19 pandemic. A Your problem is a direct result of two related principles of property law. The first is that under section 2 of the Law of Property (Miscellaneous Provisions) Act 1989, a contract must be in writing and signed by the parties. The second is that anything that is “subject to contract” does not give rise to a binding contract. As a result, buyers (and sellers) in England and Wales are always free to back out of a sale right up to the moment contracts are formally exchanged.

Source: The Times August 13, 2020 23:03 UTC