Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • FIRSTTIMER
    • By FIRSTTIMER 18th Mar 17, 4:21 PM
    • 248Posts
    • 50Thanks
    FIRSTTIMER
    What fees is a vendor liable for when they pull out of a sale?
    • #1
    • 18th Mar 17, 4:21 PM
    What fees is a vendor liable for when they pull out of a sale? 18th Mar 17 at 4:21 PM
    Just curious...if my seller pulls out before exchange (always think the worst)


    Do they pay estate agent fees?
    Do they pay solicitor fees relating to initial draft contract?


    Who stands to loose the most usually - sellers or buyer?


    Thanks
    Savings £17500
Page 1
    • HB58
    • By HB58 18th Mar 17, 4:24 PM
    • 1,751 Posts
    • 1,621 Thanks
    HB58
    • #2
    • 18th Mar 17, 4:24 PM
    • #2
    • 18th Mar 17, 4:24 PM
    Each party are responsible for their own costs, no matter who decides to stop the process, up to the point contracts are exchanged.
    • FIRSTTIMER
    • By FIRSTTIMER 18th Mar 17, 4:29 PM
    • 248 Posts
    • 50 Thanks
    FIRSTTIMER
    • #3
    • 18th Mar 17, 4:29 PM
    • #3
    • 18th Mar 17, 4:29 PM
    I understand that but what fees are normal for a seller to pay if they withdrew
    Savings £17500
    • HB58
    • By HB58 18th Mar 17, 4:32 PM
    • 1,751 Posts
    • 1,621 Thanks
    HB58
    • #4
    • 18th Mar 17, 4:32 PM
    • #4
    • 18th Mar 17, 4:32 PM
    I understand that but what fees are normal for a seller to pay if they withdrew
    Originally posted by FIRSTTIMER
    It depends on their contracts (with EA for instance) and how much work had already been carried out. They are not responsible for any of the buyers costs.
    • Red-Squirrel
    • By Red-Squirrel 18th Mar 17, 4:33 PM
    • 1,400 Posts
    • 3,487 Thanks
    Red-Squirrel
    • #5
    • 18th Mar 17, 4:33 PM
    • #5
    • 18th Mar 17, 4:33 PM
    I understand that but what fees are normal for a seller to pay if they withdrew
    Originally posted by FIRSTTIMER
    It completely depends how far along in the process they are and what kind of contract they have with agents/solicitors/brokers/lenders etc.

    There isn't really any 'normal', each failed sale will be different.
    • JP1978
    • By JP1978 18th Mar 17, 4:39 PM
    • 253 Posts
    • 206 Thanks
    JP1978
    • #6
    • 18th Mar 17, 4:39 PM
    • #6
    • 18th Mar 17, 4:39 PM
    I cant imagine any EA having terms that would allow a property to be marketed, viewed, offered on and then pulled off the market without some kind of fee - whether that be an early withdrawal fee or the full amount. Once an offer is in place, that is 95% of the EA's work completed - they aint gonna give that away for free are they?

    Re solicitors, it would depend on how far through the process they are - could be £0 if they have made no reply to the official offer, or could be a substantial amount if many letters have been drafted and sent.

    Its a how long a piece of string - however, to satisfy your worrying, yes, if a seller withdraws, they will also incur costs - maybe not so much as the buyer though - Broker fee's, searches, conveyancing.....
    • FIRSTTIMER
    • By FIRSTTIMER 18th Mar 17, 4:41 PM
    • 248 Posts
    • 50 Thanks
    FIRSTTIMER
    • #7
    • 18th Mar 17, 4:41 PM
    • #7
    • 18th Mar 17, 4:41 PM
    thanks for this
    Savings £17500
    • 3mph
    • By 3mph 18th Mar 17, 5:04 PM
    • 158 Posts
    • 173 Thanks
    3mph
    • #8
    • 18th Mar 17, 5:04 PM
    • #8
    • 18th Mar 17, 5:04 PM
    [QUOTE=JP1978;72271663]I cant imagine any EA having terms that would allow a property to be marketed, viewed, offered on and then pulled off the market without some kind of fee -


    Well we had two flats which we had put in offers over the last 4 months, these had been accepted, each time the EA had written to confirm this, we had done searches etc to have both vendors pull out, and I know the EA didn't charge in either case which was really annoying. A third one hadn't gone on the market so no paperwork or EA agreement before the vendor pulled out.
    • GoldenShadow
    • By GoldenShadow 18th Mar 17, 5:05 PM
    • 961 Posts
    • 915 Thanks
    GoldenShadow
    • #9
    • 18th Mar 17, 5:05 PM
    • #9
    • 18th Mar 17, 5:05 PM
    My estate agent has no fee if I withdraw my property before sale. I specifically asked and they said they can get me an offer at full asking price and I am entitled to say no with no penalty.
    Mortgage in 2015: £189,229.51 £188,835.58 £188,460.14 £188,083.21 £188,857.06 £187,286.99
    £186,887.30 £186,505.39 ££186,103.10 £185,718.70
    £185,185.73
    Mortgage Free: October 2040
    • JP1978
    • By JP1978 18th Mar 17, 5:10 PM
    • 253 Posts
    • 206 Thanks
    JP1978
    My estate agent has no fee if I withdraw my property before sale. I specifically asked and they said they can get me an offer at full asking price and I am entitled to say no with no penalty.
    Originally posted by GoldenShadow
    That is with a condition though isnt it - no fee IF you dont get full asking price, not no fee if you decide not to sell.

    But it appears I may be wrong on EA's listing properties with no fee if the vendor pulls out - that cant be a common business model though? They would have vendors just having their house on the market to test the waters and wasting everyones time
    • eddddy
    • By eddddy 18th Mar 17, 5:26 PM
    • 4,811 Posts
    • 4,451 Thanks
    eddddy
    In my experience...

    In areas where the property market is buoyant, and prices are high (e.g. the South East), it's easy to get a "No Sale, No Fee" EA contract.

    i.e. You pay nothing to the EA if you change your mind about selling for any reason (or switch to another EA).



    In areas where the property market is slow, and prices are low, it can be very difficult to get a "No Sale, No Fee" EA contract.

    The EAs insist on "Ready, willing and able buyer" clauses and often withdrawal fees.

    i.e. If the EA finds a "Ready, willing and able buyer", and you change your mind about selling - you have to pay the EA's full fee.
    • dk5294
    • By dk5294 18th Mar 17, 5:27 PM
    • 167 Posts
    • 19 Thanks
    dk5294
    Don't know if it's different in Scotland, but I was told after missives were concluded you were buying the house or paying hefty compensation. I would say it would be the same with the vendor?
    • stator
    • By stator 18th Mar 17, 5:36 PM
    • 5,610 Posts
    • 3,575 Thanks
    stator
    Yes in England most Estate Agents will have a clause saying you have to pay their fees if they find a ready, willing and able buyer. So if the vendor pulls out they still have to pay the EA.
    Solicitor's fees will depend on the work done already.
    Changing the world, one sarcastic comment at a time.
    • davidmcn
    • By davidmcn 18th Mar 17, 5:46 PM
    • 5,408 Posts
    • 5,097 Thanks
    davidmcn
    Don't know if it's different in Scotland, but I was told after missives were concluded you were buying the house or paying hefty compensation. I would say it would be the same with the vendor?
    Originally posted by dk5294
    It would be, but the OP did say "before exchange" (so the equivalent of missives not being concluded).
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,182Posts Today

6,483Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin