Your buyer has pulled out and contracts hadn't been exchanged. It feels like everything has collapsed, but legally and practically you are in a better position than you might think. This guide explains your legal position and what it costs you. For a step-by-step action plan, see our 48-hour guide for when a buyer pulls out. It covers England and Wales.
The short answer
Before exchange, there is no binding contract. In England and Wales, a contract to sell land has to be in writing and signed by both sides, and that only happens at exchange. Until then, either side can walk away for any reason, or none, without legal penalty.
That cuts both ways. Your buyer can leave without paying you anything. But you also aren't trapped: you're free to find a new buyer straight away, and nothing you've agreed so far stops you.
What happens to your sale
Your property goes back to being available. In practice:
- Your estate agent re-markets it, usually by switching the listing from "sold STC" back to "for sale".
- Your solicitor pauses the legal work. Ask them to keep everything they've done, such as the draft contract and your answers to enquiries, so a new buyer can pick it up quickly.
- You keep anything already prepared: your property information forms, title documents, and any guarantees or certificates. These all carry over to the next buyer.
What happens to the home you're buying
This is usually the bigger worry. If you haven't exchanged on your purchase either, your seller is also free to walk away. Most sellers don't do so straight away, especially if you're honest early and show them a plan.
What you should do:
- Tell your seller quickly, through the agents, along with a clear plan for replacing your buyer. Our guide on whether to tell your seller covers what to say.
- Ask your conveyancer what deadlines exist on your purchase, such as a date your seller wants to exchange by.
- Look at fast replacement options, including a vetted cash buyer, so your timeline doesn't start from zero.
If you have already exchanged on your purchase, you're committed to complete. Speak to your solicitor the same day.
What does it cost you?
You can't usually recover your costs from the buyer, because there was no contract. Your losses typically include:
- Legal fees for work already done, unless your conveyancer works on a no-completion, no-fee basis
- Time on the market, plus mortgage, bills and council tax for longer
- Possibly your onward purchase, if your seller won't wait
Industry estimates put the average cost of a collapsed sale at several thousand pounds across the parties involved. That's why moving fast to replace the buyer matters more than chasing the old one.
Can the buyer come back?
Sometimes. If they pulled out because of a mortgage problem or a survey issue, the door may not be closed. Ask your agent for the real reason (our guide on why buyers pull out helps here). But don't put your move on hold waiting for them. Market the property again while you find out.
Is this changing?
The government announced reforms in June 2026 that include binding conditional contracts, which would commit buyers and sellers much earlier, with penalties for walking away without a good reason. These need new legislation and aren't expected for some years, so for now the rule is unchanged: nothing is binding until exchange.
How Ready Set Sold helps
When a buyer pulls out before exchange, the race is to replace them before your own purchase is lost. That's what we do.
- We act as your estate agent, so our duty is to you.
- We introduce vetted cash buyers with proof of funds already checked, so there's no mortgage or chain to wait for.
- It costs you nothing. The buyer pays our sourcing fee on completion.
Frequently asked questions
Can a buyer pull out before exchange without paying anything?
Yes. In England and Wales nothing is legally binding until contracts are exchanged, so a buyer can withdraw without penalty.
Do I have to pay my solicitor if my buyer pulls out?
Usually you pay for the work done so far, unless your conveyancer offers a no-completion, no-fee service. Check your client care letter.
Can I keep the buyer's deposit?
No deposit is paid until exchange, so there's nothing to keep if they pull out before then.
How quickly can I find a new buyer?
On the open market it often takes weeks to agree a new sale. A vetted cash buyer can sometimes be found within days and complete within weeks.
This guide is general information, not legal advice. Speak to your solicitor about your own situation.
Sources: TLT: home buying and selling reform roadmap (June 2026); Today's Conveyancer: cost of fall-throughs, Q1 2026.