Part exchange advice please

chilipepper81

Hello, I have seen a house for sale that I would like to buy. The vendor is interested in my house which is great!
My house is not on the market yet, do I have to declare my house exchange to the estate agents? I've effectively sold it myself so begrudge paying a sellers fee!

Where do I stand?

Thanks,

Rachel

Jomo

No if you have already sold it you don't need an EA, what would you be paying for?

Part X is a good way to escape EA fees.

Benji_Brown

If you are not on the market, who would you be paying as you would not have an estate agent, as JOMO said. If you have signed a contract with an agent you may have to pay.

chilipepper81

I will end up paying the vendor money as his house is more than mine. I have not signed a contract with anybody. I found this house by chance and the option has come up for P/X. My house is not and won't be going on the market.

So what you're saying is I have no legal obligation to tell the estate agent that has the house for sale that I want?

Sorry if you end up repeating yourself, I'm new to this procedure!

pink68

so...correct me if i have this wrong...

you want to buy a house you've seen that is up with an EA, it's not a new house so is being sold by it's homeowner.

the person selling likes YOUR house and would part ex with you and live in it.

your house has not been on with an EA at all....

the seller has to pay his EA, you don;t owe anyone anything except for the difference in prices as I see it.

chickmug

chilipepper81 wrote: »

So what you're saying is I have no legal obligation to tell the estate agent that has the house for sale that I want?

The simple answer is NO you don't.

But the seller may have a Sole Selling Rights Agreement, with the agent (their agent), and as such the seller will have to pay their agent the commission.

Doozergirl

If you manage to agree a price for both houses, consider whether it's worth bringing the purchase price of each house down, keeping the differential the same.

Either or both of you could save money on Stamp Duty based on the purchase price being lower. Stamp Duty is based on market value so you can't give yours away for free and pay him the difference, but a valuation on the lower side of realistic might be advantageous.

eg. if you had agreed £185,000 for your house and £265,000 for his, he'd pay £1850 in Stamp Duty and you would pay £7950.
If you brought the purchase price of each down by £20,000 then he wouldn't pay any Stamp Duty at all and you would only pay £2450.