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Can a negotiate the deal with two different buyers?

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javixeneize
javixeneize Posts: 157 Forumite
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in House buying, renting & selling
Hi

Im in the process of buying a house and i want to have some information about this pocess

They seller has accepted my offer and we are discussing about exchange contracts with the solicitors etc... But, would be possible that the seller has also accepted another offer and is doing the same process with a different buyer?

Thanks
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  • RedFraggle
    RedFraggle Posts: 1,309 Forumite
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    They shouldn't be no. Has the agent issued the memorandum of sale to you?
    Officially in a clique of idiots
  • WeAreGhosts
    WeAreGhosts Posts: 3,100 Forumite
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    Yes! When we were selling our EA told us to consider this. We had one buyer who was messing around after his offer was accepted. There was another potential buyer who said they could act quicker. We didn't run the two together in the end, but it was an option and it was the EA who suggested it.
    (I'm not saying it's right/legal)
  • javixeneize
    javixeneize Posts: 157 Forumite
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    Yes, I have everything and it looks like it is progressing, but I want to know if there is any law that prevents this

    It is, as a seller, I accept two offers, and the first one that wants to exchange contracts wins

    Thanks
  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
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    javixeneize wrote: »
    Yes, I have everything and it looks like it is progressing, but I want to know if there is any law that prevents this

    It is, as a seller, I accept two offers, and the first one that wants to exchange contracts wins

    Thanks

    What you are referring to is a contracts race.

    I believe the seller's solicitor must by law inform buyer A's solicitor if they are instructed to send out a second contract to buyer B.

    It is terrifically rare.
  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
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    WeAreGhosts wrote: »
    Yes! When we were selling our EA told us to consider this. We had one buyer who was messing around after his offer was accepted. There was another potential buyer who said they could act quicker. We didn't run the two together in the end, but it was an option and it was the EA who suggested it.
    (I'm not saying it's right/legal)

    It is legal, but rarely is it a good idea.
  • javixeneize
    javixeneize Posts: 157 Forumite
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    I know is an edge situation but I just want to know about that

    So if this is the case, I should be made aware by my solicitors about this, isn’t it?

    Thanks
  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
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    javixeneize wrote: »
    So if this is the case, I should be made aware by my solicitors about this, isn’t it?

    Yes, that is correct.

    If you have reason to suspect this may have happened/be happening, perhaps ask your solicitor to check with the seller's solicitor that a second contract has not been issued.
  • JoJo1978
    JoJo1978 Posts: 375 Forumite
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    The law comes it at exchange of contracts, not before. It's morally dubious but not illegal.

    It's sometimes referred to as a contract race, and the goalpost is who does exchange - wants to is not enough.

    Our EA negotiated three acceptable offers on our place. We kept all in play until the point that one party started to spend significant money applying for a mortgage, survey, searches etc. Then we formally rejected the other 2.
  • javixeneize
    javixeneize Posts: 157 Forumite
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    Yes, I have seen that, but only before starting to work officially with solicitors. I have never seen that in the phase where both seller and buyer solicitors are engaged and working on the transfer

    Thanks
  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
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    JoJo1978 wrote: »
    The law comes it at exchange of contracts, not before. It's morally dubious but not illegal.

    It's sometimes referred to as a contract race, and the goalpost is who does exchange - wants to is not enough.

    In the case of a contracts race I believe there are parts of the law that come in prior to exchange of contracts.

    The seller and their solicitor have a duty to inform all prospective buyers involved that a contracts race situation exists.
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