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  • FIRST POST
    • javixeneize
    • By javixeneize 30th Nov 17, 1:05 PM
    • 11Posts
    • 0Thanks
    javixeneize
    Can a negotiate the deal with two different buyers?
    • #1
    • 30th Nov 17, 1:05 PM
    Can a negotiate the deal with two different buyers? 30th Nov 17 at 1:05 PM
    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
Page 1
    • RedFraggle
    • By RedFraggle 30th Nov 17, 1:10 PM
    • 534 Posts
    • 1,232 Thanks
    RedFraggle
    • #2
    • 30th Nov 17, 1:10 PM
    • #2
    • 30th Nov 17, 1:10 PM
    They shouldn't be no. Has the agent issued the memorandum of sale to you?
    Officially in a clique of idiots
    • WeAreGhosts
    • By WeAreGhosts 30th Nov 17, 1:12 PM
    • 2,200 Posts
    • 24,650 Thanks
    WeAreGhosts
    • #3
    • 30th Nov 17, 1:12 PM
    • #3
    • 30th Nov 17, 1:12 PM
    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
    • By javixeneize 30th Nov 17, 1:12 PM
    • 11 Posts
    • 0 Thanks
    javixeneize
    • #4
    • 30th Nov 17, 1:12 PM
    • #4
    • 30th Nov 17, 1:12 PM
    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
    • By Surrey_EA 30th Nov 17, 1:16 PM
    • 1,298 Posts
    • 1,551 Thanks
    Surrey_EA
    • #5
    • 30th Nov 17, 1:16 PM
    • #5
    • 30th Nov 17, 1:16 PM
    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
    Originally posted by javixeneize
    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
    • By Surrey_EA 30th Nov 17, 1:16 PM
    • 1,298 Posts
    • 1,551 Thanks
    Surrey_EA
    • #6
    • 30th Nov 17, 1:16 PM
    • #6
    • 30th Nov 17, 1:16 PM
    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)
    Originally posted by WeAreGhosts
    It is legal, but rarely is it a good idea.
    • javixeneize
    • By javixeneize 30th Nov 17, 1:17 PM
    • 11 Posts
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    javixeneize
    • #7
    • 30th Nov 17, 1:17 PM
    • #7
    • 30th Nov 17, 1:17 PM
    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
    • By Surrey_EA 30th Nov 17, 1:20 PM
    • 1,298 Posts
    • 1,551 Thanks
    Surrey_EA
    • #8
    • 30th Nov 17, 1:20 PM
    • #8
    • 30th Nov 17, 1:20 PM
    So if this is the case, I should be made aware by my solicitors about this, isnít it?
    Originally posted by javixeneize
    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
    • By JoJo1978 30th Nov 17, 1:21 PM
    • 177 Posts
    • 161 Thanks
    JoJo1978
    • #9
    • 30th Nov 17, 1:21 PM
    • #9
    • 30th Nov 17, 1:21 PM
    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.
    Hamster in the wheel (London) 1999-2017
    Mortgage free since 2015; Pension pot sorted 2017
    Second career (what TBD!) 2018
    • javixeneize
    • By javixeneize 30th Nov 17, 1:25 PM
    • 11 Posts
    • 0 Thanks
    javixeneize
    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
    • By Surrey_EA 30th Nov 17, 1:29 PM
    • 1,298 Posts
    • 1,551 Thanks
    Surrey_EA
    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.
    Originally posted by JoJo1978
    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.
    • G_M
    • By G_M 30th Nov 17, 1:34 PM
    • 42,255 Posts
    • 49,059 Thanks
    G_M
    It's not a law as such. It's part of the solicitors code of conduct to advise all parties of a contract race (I believe).

    So if, for example, the seller was doing the conveyancing himself, there wuld be no law forcing him to advise each buyer of the contract race........
    Last edited by G_M; 01-12-2017 at 11:42 AM.
    • Surrey_EA
    • By Surrey_EA 30th Nov 17, 1:37 PM
    • 1,298 Posts
    • 1,551 Thanks
    Surrey_EA
    It's not a law as such. It's part of the solicitors code of conduct to advise all parties of a contrct rac (I believe).

    So if, for example, the seller was doing the conveyancing himself, there wuld be no law forcing him to advise each buyer of the contract race........
    Originally posted by G_M
    Apologies, I think you may very well be correct.

    Having read a little more it is not in fact law, but a professional obligation solicitors adhere to following the Law Society/SRA code of conduct.
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