Your buyer pulled out and it's cost you money: legal fees, months of extra mortgage payments, maybe the home you were buying. Industry estimates put the average cost of a collapsed sale at around £3,500 in early 2026. It's natural to want the buyer to pay. Whether they can be made to depends almost entirely on one thing: had contracts been exchanged? This guide covers England and Wales.
Before exchange: almost never
In England and Wales, there is no binding contract to sell a property until contracts are exchanged. Until then, both sides are free to withdraw for any reason. That means:
- You can't sue for breach of contract, because there isn't one
- You usually can't recover your wasted costs, such as legal fees or the cost of losing your own purchase
- It doesn't matter how late they pulled out, even on the day of exchange
The courts have long treated "subject to contract" as meaning exactly that. Suing a buyer who walked away before exchange is very unlikely to succeed and could cost more than you lost.
The rare exceptions
Take legal advice if any of these apply:
- A separate signed agreement, such as a lock-out or reservation agreement that sets out specific obligations or costs. You can only enforce what it actually says.
- Fraud or deliberate deception, for example a buyer who lied about their finances to get you to take your home off the market. This is hard to prove.
- Damage to your property during viewings or surveys, which is a separate issue from the sale itself.
After exchange: yes, you have real remedies
Once contracts are exchanged, the sale is legally binding. If the buyer then fails to complete:
- Your solicitor serves a notice to complete. Under the standard terms most sales use, this usually gives the buyer 10 working days.
- If they still don't complete, you can end the contract and keep their deposit, commonly 10% of the price, though a lower amount is sometimes agreed.
- You can re-sell and claim further losses beyond the deposit, such as a lower resale price or extra costs.
This is why exchange matters so much, and why buyers rarely pull out after it.
Other ways to get money back
Insurance, if you bought it beforehand
Some insurers sell home-moving protection policies that reimburse wasted legal fees, survey costs and some other expenses if a sale falls through for reasons outside your control. They only help if you took the cover out before the problem, they pay set amounts, and they have exclusions such as you changing your mind. Check whether your conveyancer, broker or home insurer offered one.
Avoiding costs rather than recovering them
- Estate agent: most work on a no-sale, no-fee basis. Check for withdrawal fees or a "ready, willing and able" clause. See estate agent fees when a sale falls through.
- Conveyancer: many offer no-completion, no-fee terms or a reduced fee if the sale fails. Check your client care letter.
Should you threaten legal action?
Before exchange, a threat is unlikely to change anything and can damage the relationship if there's a chance the buyer comes back. Your energy is usually better spent:
- Finding out why they pulled out, in case it can be fixed
- Asking your solicitor to pause work and keep everything for the next buyer
- Re-marketing straight away, because every week costs money
- Protecting your onward purchase
How Ready Set Sold helps
You can't usually make the old buyer pay, but you can stop the losses growing by replacing them quickly. We act as your estate agent and bring in a vetted cash buyer, so you're not starting from scratch. It's free for you: the buyer pays our sourcing fee on completion.
Frequently asked questions
Do I get compensation if my buyer pulls out?
Not usually, if they pulled out before exchange. After exchange you can normally keep their deposit and claim further losses.
Can I take a buyer to the small claims court for my costs?
Before exchange, a claim is very unlikely to succeed because there's no contract. Take advice before spending money on it.
Is there insurance for house sales falling through?
Yes. Home-moving protection policies can cover wasted costs, but only if you bought the cover before the sale collapsed.
Is the buyer's deposit always 10%?
It's commonly 10%, but a lower deposit can be agreed. Your contract will say what was paid.
Can I claim from my estate agent if the sale fell through?
Only if the agent did something wrong, such as misleading you about the buyer. You can complain through their redress scheme.
This guide is general information, not legal or financial advice. Speak to a solicitor about your own situation.
Sources: Today's Conveyancer: average cost of a fall-through, Q1 2026.