Can a vendor really accept as many offers as they want?

MyUserNameWasTaken

We're having a bad time buying a house (we've been gazumped recently). We've just found a new property and put an offer in a week ago. They accepted and we have moved ahead and engaged a solicitor and started to sort out survey, searches etc. Today we found out that they have accepted two offers and will take whoever is ready to exchange first. And they are keeping the house on the market to attract other offers. Can they really do this? We've lost so much money from being gazumped and if the other people move quicker than us then we stand to lose all over again with this place. At this rate we won't have a deposit left.

I'm inclined to cut our losses and pull out but wanted to know, is it normal to accept several offers? (They didn't tell us by the way, we found out accidentally.)

barnaby-bear

MyUserNameWasTaken wrote: »

We're having a bad time buying a house (we've been gazumped recently). We've just found a new property and put an offer in a week ago. They accepted and we have moved ahead and engaged a solicitor and started to sort out survey, searches etc. Today we found out that they have accepted two offers and will take whoever is ready to exchange first. And they are keeping the house on the market to attract other offers. Can they really do this? We've lost so much money from being gazumped and if the other people move quicker than us then we stand to lose all over again with this place. At this rate we won't have a deposit left.

I'm inclined to cut our losses and pull out but wanted to know, is it normal to accept several offers? (They didn't tell us by the way, we found out accidentally.)

google "contract race"
there are pretty strict rules on conduct of notification for these - they have to tell you:
http://www.cch-solicitors.com/property/race.htm
http://www.practicalconveyancing.co.uk/content/view/10334/1129/

Geenie

This doesn't sound like acceptable behaviour to me OP if they accepted your offer, and expect you to pay for all the costs you would need to proceed. Pull out now before you spend any more money as they are not to be trusted in my books, and will probably accept yet another offer if higher or quicker then the 2 already in their hands. And I would let their EA's know what you think of them!

MyUserNameWasTaken

Thanks for both of these replies. The property is on with more than one estate agent and the other offer was put in through a different EA to the one that we used. No one has officially informed us that both offers have been accepted (someone let it slip, we phoned up and have subsequently had it confirmed). I wonder if the other buyers are aware. Sounds from what you have said (and thanks for the links) as if they have been naughty. We are already out of pocket but I think we will pull out tomorrow rather than risk seeing more money go down the drain.

I'm so fed up of house hunting now!

Geenie

House buying is truly stressful, they say the most stressful thing we do as adults. But don't let past failure push you into something that isn't right. I think the vendors are not treating you fairly, or the other people who placed an offer. You are spending money without any assurance of getting the place. It depends how much you want it, but no bricks and mortar are worth this run around to me. Plenty more out there, just be patient and your home will come.

saver_sam

This sounds like a contract race as mentioned by baranby-bear.

The premise is the seller wants to keep their options open and sell to whoever is ready and willing to proceed first.

Rule 10 of the Solicitors Code of Conduct governs contract races. The client (seller) must allow their solicitor to disclose to each potential buyer that more than one contract has been sent out, and if the client refuses, the solicitor must refuse to act. The disclosure must be made or confirmed in writing.

Robert_Sterling_3

We're having a bad time buying a house (we've been gazumped recently).

I am sorry to hear that.

We've just found a new property and put an offer in a week ago. They accepted and we have moved ahead and engaged a solicitor and started to sort out survey, searches etc. Today we found out that they have accepted two offers and will take whoever is ready to exchange first. And they are keeping the house on the market to attract other offers. Can they really do this?

They most certainly can. When buying or selling a house the ball is still in play ( not until the fat lady sings ) until contracts are signed and exchanged.

We've lost so much money from being gazumped

That was yesterday. This is today.


if the other people move quicker than us or offer more than us then we stand to lose all over again with this place. At this rate we won't have a deposit left.

You have a choice. Jump ship now or take a gamble.

I'm inclined to cut our losses and pull out but wanted to know, is it normal to accept several offers?
(They didn't tell us by the way, we found out accidentally.)

I have no idea of the percentage of cases in which this happens.

You can prevent it happening again by saying "I will make you an offer of £X if, and only if, you will withdraw your house from the market and have it marked as STC."

A seller is more likely to accept an offer if your house is already sold STC etc etc.

Good luck

hamblettamaud

if a potential vendor did that to me i wouldn't be happy giving him any money. he's an opportunistic git with no scruples. you should think strongly about walking away. i would.

Robert_Sterling_3

There has been no question of "giving" him money.

Running_Horse

Not only should you pull out, but you should let all the other EAs know what is going on, and tell them you are proceeding and intend to win the race. The vendor won't be so smug when all buyers pull out together.

baileysbattlebus

MyUserNameWasTaken wrote: »

We're having a bad time buying a house (we've been gazumped recently). We've just found a new property and put an offer in a week ago. They accepted and we have moved ahead and engaged a solicitor and started to sort out survey, searches etc. Today we found out that they have accepted two offers and will take whoever is ready to exchange first. And they are keeping the house on the market to attract other offers. Can they really do this? We've lost so much money from being gazumped and if the other people move quicker than us then we stand to lose all over again with this place. At this rate we won't have a deposit left.

I'm inclined to cut our losses and pull out but wanted to know, is it normal to accept several offers? (They didn't tell us by the way, we found out accidentally.)

Yes they can leave their house on the market and accept as many offers as they like - just as you can put in as many offers as you like.

During the last property boom "contract races" weren't uncommon, I would have thought in a down turn they are uncommon.

Gazumping was common too.

In the last crash gazundering was common.

When ever we have bought houses, we have asked the vendor to take the property off the market, if they had refused, we would have walked away. We have alway taken our house off the market once it had been "sold". IMO, there has to some element of trust between buyer and seller.

The seller may be concerned by the lack of mortgage funds or people being unable to get mortgages and are trying to cover all their bases. But it still stinks.

In the same way if someone tried to gazunder at the last minute we would withdraw.

You are at the early stages of the process only having put in your offer about a week ago. Try and find out if there definitely has been another offer accepted.

The vendor must disclose to their solicitor if they have accepted more than one offer, if the solicitor has to draw up more than one contract, the solicitor will let you know. But they may not have instructed a solicitor yet.

You can ask your EA to find out if they accepted more than one offer.

You can ask your EA to find out if they have instructed a soliticor.

But at the end of the day, the vendor is paying the EA, so the EA will look after the vendor's interest not yours.

Personally, if they have accepted more than one offer I would walk. But that's just my opinion.