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Strange buying process for a house! any thoughts???
dawsinho
Posts: 85 Forumite
Hi all,
Wonder if anyone has come across this before...?!?
I have found a house that I would like to buy.. put a offer in which has been accepted (so far so good).
Today I received a phone call from the estate agent instructing me of the conditions relating to the sale of the house. The basic jist of it seem to be this: the vendor would like to agree a contract for the sale of the property now, hence I can move in asap but hold back the completion of the sale until March 09. I presumably something to do with tax liabilities of some sort with the vendor as I believe he has sold a number of properties this year.
So as I have had it explained to me... contracts would be drawn up, price agreed, I would pay a deposit to the the vendor and could move in now, but the actual completion of the house sale would go through in March.
The estate agents are a well known and respected chain, who have asked me to hire a solicitor who can go through all the necessary paper work etc and make sure I'm happy with everything. In one respect it could be good news as I would get access to the house very soon but not actually be paying for it until March from what I understand.
Has anyone come across this before?
Thanks,
Phil
Wonder if anyone has come across this before...?!?
I have found a house that I would like to buy.. put a offer in which has been accepted (so far so good).
Today I received a phone call from the estate agent instructing me of the conditions relating to the sale of the house. The basic jist of it seem to be this: the vendor would like to agree a contract for the sale of the property now, hence I can move in asap but hold back the completion of the sale until March 09. I presumably something to do with tax liabilities of some sort with the vendor as I believe he has sold a number of properties this year.
So as I have had it explained to me... contracts would be drawn up, price agreed, I would pay a deposit to the the vendor and could move in now, but the actual completion of the house sale would go through in March.
The estate agents are a well known and respected chain, who have asked me to hire a solicitor who can go through all the necessary paper work etc and make sure I'm happy with everything. In one respect it could be good news as I would get access to the house very soon but not actually be paying for it until March from what I understand.
Has anyone come across this before?
Thanks,
Phil
0
Comments
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There was a very similar query a few months ago. The general conclusion was that this can be made to work. I would suggest some quid pro quo from the vendor for agreeing to this, eg he pays something towards your legal fees, which are bound to be higher with this complicated deal.No reliance should be placed on the above! Absolutely none, do you hear?0
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What happens if you agree to complete for a purchase price of, say, £150k next March and the property has devalued and is worth less ? What happens if the seller still has a mortgage on the property and they stop paying ? Sounds a bit odd.0
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Yes but beware. The seller is doing it for one reason only, money. Your solicitor will explain the pitfalls and cost of all this to you. He is most likely to tell you not to proceed with such a deal.0
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I would disagree david, its something that happens and theres no need to be scared of it. Yes its unusual but a good solicitor will sort out all of the legalities no problem at all. As mentioned the vendor should cover any additional legal fees and as I see it the worst that can happen is that you cause problems by looking at the rapidly falling house prices!!
In all seriousness I would not let this put you off, have a chat with your solicitor and he will put your mind to rest.
p.s - the deposit you mention is an exchange of contracts I take it?0 -
If you do this, you may want to reduce your offer, to something which will be in line with house prices at that time. Depending where you are in the country, but I'd reduce the offer by 5-6% - and state these are your conditions accounting for the trend of house prices in the current climate.My suggestion and/or advice is my own and it is up to you if you follow it, please check the advice given before acting on it.0
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What seller's solicitor will allow the buyer to move in before paying for the property?????
If it is a tax avoidance measure it may fail as the day of exchange is often considered the date to use in CGT calculations.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Exchange and completion can be as far apart as both parties like. The simple fact is if both parties agree to this then there is no problem. Its not the norm but that doesnt make it a problem.0
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March seems odd - new tax year is in April...
Your mortgage offer will be conditional on vacant possession - also what happens if the seller is repossessed by the bank between now and then?0 -
Darth_Marty wrote: »Exchange and completion can be as far apart as both parties like. The simple fact is if both parties agree to this then there is no problem. Its not the norm but that doesnt make it a problem.
Agreed, but the buyer can't usually move in before completion!
Has the seller's mortgage lender agreed that the new owner can move in while they still have security over the property?
What happens if the buyer can't get a mortgage in March?I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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