Help with buying house.

Doozergirl

andrewmp wrote: »

I haven't made an offer in writing, would this normally be expected?

No.

I'm not entirely sure that the information in that post was correct either. It's the first I've ever heard of it. I should think that if due process has not been followed then the 'vendor' would get laughed out of court. Nothing is binding until exchange of contracts. I don't think a written offer would constitute an exchange of contracts under any circumstances.

huntersc

Don't put anything in writing. Ever. That's what your solicitor is for. To some extent, once you have agreed a price your discussions with the EA should come to an end. Let the solicitor deal with it. I've done that with every purchase I've ever made. If the EA wants to talk about anything it goes through the solicitor, they are also certainly less likely to start messing around with raising prices or throwing in 'mystery buyers' when they have to tell it to the solicitor.

Doozergirl

This thread gets more and more bizarre.

GDB2222

andrewmp wrote: »

A 20% fall from todays "prices" will take it rougly to what I paid so that'll be ok with me. I'm not going to take that risk though as I'm getting a long term fix so if I do end up on negative equity or even a lower LTV then I don't have to get a new fix etc.

I've preached to people lots about not buying a house, how there will be a drop. I'm getting a two bed semi in a nice enough area for nearly 20% less every month than I currently pay on rent. In 15 years time I'm sure my rent would have risen, I just need to ensure I put away so much per month for other costs you don't have when you rent, things going wrong etc.

I haven't made an offer in writing, would this normally be expected?

I think you know what I meant by a fall of 20% from today's prices, and it's not the interpretation you have chosen to place on it. Do you really, truly think that you are buying a house for 20% below its true market value? The vendor has a white beard and says yohoho a lot? :-)

It does sound like the economics of the deal stack up nicely for you, though. Just as long as you don't kick yourself in a couple of years time because the same deal may cost 20% less then. That's the question. Do you buy the 'bargain' now or leave it and hope something better turns up in a couple of years now. Either way, there's a risk. My own preference would be to wait for later in the cycle. Buying when prices seem to be dropping at the rate of 2% a month is a bit hair-raising :eek:

I just wouldn't put any offers in writing without first speaking to your solicitor. Say what you like, but don't write it down.

GDB2222

Doozergirl wrote: »

No.

I'm not entirely sure that the information in that post was correct either. It's the first I've ever heard of it. I should think that if due process has not been followed then the 'vendor' would get laughed out of court. Nothing is binding until exchange of contracts. I don't think a written offer would constitute an exchange of contracts under any circumstances.

Sigh. Think about what a contract is. It's just an offer to buy that's accepted. There's no requirement for 'due process' for it to be binding. For property, it has to be in writing, but it doesn't have to be in legalese or in a particular format.

Doozergirl

GDB2222 wrote: »

Sigh. Think about what a contract is. It's just an offer to buy that's accepted. There's no requirement for 'due process' for it to be binding. For property, it has to be in writing, but it doesn't have to be in legalese or in a particular format.

Sigh. Perhaps (because I'm so stupid obviously) you'd care to back this up with some evidence? Perhaps where a written offer by a potential purchaser without STC written on it has been upheld as an exchange of contracts by the courts?

There is certainly a National Protocol for conveyancing and with it being such a complicated area I am certain that there are requirements for a legally binding contract of sale of land regardless of who writes it. It seems absurd that making an offer in writing, which people do all the time when tendering or making sealed bids, indeed estate agents send out notifications of sales every day, could end in a legally binding deal because someone has simply ommited to write STC. That is the first time I ever seen it mentioned, in over three years, that you should not write anything down.

With it being so easy to withdraw from a sale or purchase before official exchange of contracts, there would be far more litigation based on 'written offers' than there is and at least some successes.

Sigh indeed. I have thought about it. It doesn't appear that simple to me.

Doozergirl

On further investigation I find that a written offer with a subsequent acceptance from the vendor can form a legally binding agreement in Scotland. The offer actually forms part of the missives and is drawn up by a solicitor.

In England, no written offer to purchase would be seen to be an exchange of contracts.

neverdespairgirl

GDB2222 wrote: »

Sigh. Think about what a contract is. It's just an offer to buy that's accepted. There's no requirement for 'due process' for it to be binding. For property, it has to be in writing, but it doesn't have to be in legalese or in a particular format.

I don't think this would be binding. For the sale of land in England & Wales, the contract has to be in writing.

A contract is 3 things, not just an offer and acceptance - those things offer & acceptance, consideration, and an intention to create a legal relationship.

I think the written offer falls down on 2 out of the 3. There is an offer, but no acceptance. There is also, arguably, not an intention to create a legal relationship arising purely from the offer.

andrewmp

GDB2222 wrote: »

I think you know what I meant by a fall of 20% from today's prices, and it's not the interpretation you have chosen to place on it. Do you really, truly think that you are buying a house for 20% below its true market value? The vendor has a white beard and says yohoho a lot? :-)

It does sound like the economics of the deal stack up nicely for you, though. Just as long as you don't kick yourself in a couple of years time because the same deal may cost 20% less then. That's the question. Do you buy the 'bargain' now or leave it and hope something better turns up in a couple of years now. Either way, there's a risk. My own preference would be to wait for later in the cycle. Buying when prices seem to be dropping at the rate of 2% a month is a bit hair-raising :eek:

I just wouldn't put any offers in writing without first speaking to your solicitor. Say what you like, but don't write it down.

I beleive I am buying a house for it's true current market value as it's market value is what someone is willing to pay for it in the current market. I full accept and indeed expect it to be worth less in two years time.

Do I expect it to be worth less in 10 years time? Nope. As I have a long term fix in place and have never left the area, why would I care about interim values which will have no effect on my mortgage payments? I'm not the sort to go away anywhere long term as stupidly I wouldn't want to miss the match :-)

If I was taking a two year fix I'd be leaving myself open for a potential world of !!!! in two years time. I'm going to be living in a house with a huge garden instead of a terrace with no outside space and paying 20% less and (very very slowly) paying towards not having most of my pension going on rent in later life.

neverdespairgirl

Having a long-term fix such as yours is a very sensible move, in the current climate.