Reserved new house but can't sell our existing house

SouthCoast

Who advised you to sign the missives for the purchase?

Definition of Professional Misconduct
There are certain standards of conduct to be expected of competent and reputable solicitors. A departure from those standards, which would be regarded by competent and reputable solicitors as serious and reprehensible, may properly be categorised as professional misconduct.
Whether or not the conduct complained of is a breach of rules or some other actings or omissions the same questions fall to be asked and answered and in every case it will be essential to consider the whole circumstances and the degree of culpability which ought properly to be attached to the individual against whom the complaint is made (Sharp v Council of the Law Society l984 SLT 313).
Professional conduct complaints could include the following:

• Your solicitor has misled or misinformed you.
• Your solicitor has breached client confidentiality.
• Your solicitor had a conflict of interest.

http://www.lawscot.co.uk/Public_Information/Complaints_against_Scottish_solicitors/what_law_society_scotland_can_do.aspx

SquatNow

I'm assuming here that new build contracts are the same in scotland as in england. (I see no reason why the contract would be different even if house sale rules are)

Assuming it's the same, if you pull out of the sale you will lose your deposit and you will be liable for the difference between the price you agreed to pay and the price they finally sell the house for, plus advertising fees and reasonable costs. Generally there is no limit on this and if it sells at auction for half what you offered, you're screwed.

The first thing you need to do it slash the price of your current house as much as you possibly can to try to get a buyer.

The next thing is to contact the developer, explain the situation, tell the you still want to complete, and ask if the can do a deal. Part-ex maybe? Or a reduction in price. It could be in hteir interest to be flexible as it means you'll complete - and they will ge their cash - sooner. Also suggest to them that if it goes pear-shaped you'll have to declare yourself bankrupt... and they'll get even less money.

They may tell you to get stuffed... in which case if you cant cut your selling price enough to get a quick sale the only choice you'll have is bankrupcy.

GDB2222

moneysaver wrote: »

If you have to reduce your price why not ask Tulloch homes to reduce their price. You could then reduce yours further if necessary, In the current climate surely the house you are buying has also lost value. I know somebody who done this & the housebuilder reduced by 15k on a 125k new build.


Moneysaver

They've already signed a binding contract?

moneysaver

GDB2222 wrote: »

They've already signed a binding contract?

Binding contract or not, it is worth asking. Would the builder rather lose a sale in this current market or get the property off their books?;)


Moneysaver

beecher

barnaby-bear wrote: »

Catastrophic Missive Fees was my favorite caption.... people keep telling us the scottish system where the contract is binding is better...

And I'd maintain that the Scottish system is indeed better. It is complete madness to complete missives on a purchase before doing so on your sale, and sadly you can easily end up in the position of the OP. I have to wonder why the solicitor allowed this situation to happen - they're meant to be there to stop you from making such mistakes!

I have heard of some people managing to pay their way out of their contracts, but ultimately they have no obligation to allow it.

GDB2222

moneysaver wrote: »

Binding contract or not, it is worth asking. Would the builder rather lose a sale in this current market or get the property off their books?;)


Moneysaver

Well, the builder already has a sale ....

moneysaver

GDB2222 wrote: »

Well, the builder already has a sale ....

A house is never sold until the money is in the bank.

barnaby-bear

beecher wrote: »

And I'd maintain that the Scottish system is indeed better. It is complete madness to complete missives on a purchase before doing so on your sale, and sadly you can easily end up in the position of the OP. I have to wonder why the solicitor allowed this situation to happen - they're meant to be there to stop you from making such mistakes!

I have heard of some people managing to pay their way out of their contracts, but ultimately they have no obligation to allow it.

So does that mean no chains - or can you all sign on same day?