Vendors pull out AFTER exchange of contract

Welshwoofs

freezspirit wrote: »

Can someone clarify something thats puzzling me on this matter. When my brother bought his house before he could sign the contract he had to transfer money to his solicitor and once he signed it was transfers to the sellers. So in this case they exchange contracts and were going to move in. Would that mean the seller at the moment is basically a squatter? Or have they not got up to the stage of money transfer?

The deposit is held with solicitors on exchange of contracts and the rest goes through on completion. So at the moment the deposit is tied up with the solicitors until this is sorted.

clutton_2

does their solicitor have it ?

silvercar

clutton wrote: »

does their solicitor have it ?

I would guess that the seller's solicitor informed the buyer's solicitor that his clients weren't going to honour the contract and told the buyer's solicitor not to pass on the deposit. So it is probably still with the buyer's solicitor.

Slightly more interesting is the mortgage money. Normally this would be drrawndown the day before completion so it is available for the buyer's solicitor to pass over on completion day. At some point fairly soon the buyer's solicitor has to make a decision on whether to send the money back to the lender.

Imlovingit_2

Firstly can I say I am so sorry to what is happening to you, you must be at your wits end

Secondly we are currently in the process of moving home and have a completion date of 29th July and exchanging contracts this week, we need to give the solicitor another £42000 on top of our mortgage to purchase our next property, however they have never asked for any proof that we actually have this money, they have just asked for it to be in their bank by the 28th (the day before completion)

Do you think a similar sort of thing has happened here ie they were supposed to make sure the balance of the purchase price of their next property was with the solicitor the day before completion but then realised they didnt/couldnt get enough

Good luck with what you decide to do and I will be keeping up to date with this one, its so intriguing

shirlgirl2004

Imlovingit wrote: »

Firstly can I say I am so sorry to what is happening to you, you must be at your wits end

Secondly we are currently in the process of moving home and have a completion date of 29th July and exchanging contracts this week, we need to give the solicitor another £42000 on top of our mortgage to purchase our next property, however they have never asked for any proof that we actually have this money, they have just asked for it to be in their bank by the 28th (the day before completion)

Do you think a similar sort of thing has happened here ie they were supposed to make sure the balance of the purchase price of their next property was with the solicitor the day before completion but then realised they didnt/couldnt get enough

Good luck with what you decide to do and I will be keeping up to date with this one, its so intriguing

That's interseting because our solicitor has said they need proof of where the money has come from. Even a bank statement will not do as they need to know its origin so as to avoid being implicated in money laundering.

Welshwoofs

silvercar wrote: »

I would guess that the seller's solicitor informed the buyer's solicitor that his clients weren't going to honour the contract and told the buyer's solicitor not to pass on the deposit. So it is probably still with the buyer's solicitor.

Slightly more interesting is the mortgage money. Normally this would be drrawndown the day before completion so it is available for the buyer's solicitor to pass over on completion day. At some point fairly soon the buyer's solicitor has to make a decision on whether to send the money back to the lender.

The deposit is with the seller's solicitor. There are no mortgage complications on our end, it was to be a cash purchase.

ciano125

PasturesNew wrote: »

Ha ha ha ha - the tw4ts not only lost a buyer in this market .. but the BEST type of buyer!

Double losers.

I do hope it all turns out great in the end ... silly s0ds aren't they.

They haven't lost them, they're selling to the OP whether they like it or not!! :rotfl::rotfl::rotfl:

gelato_cat

Best of luck with this - I've been reading with interest as I've exchanged and am completing in a couple of weeks. I can't believe the cheek of your buyers - tough luck if their mortgage is unfavourable! Idiots. It's their kids I feel sorry for (for almost being homeless and having stupid parents like that)!

Incidentally, I was surprised to see that hardly any of the experts on here have had experience of this happening, purely because when I was a kid during the 1980s property boom I remember my parents' friends and other adults saying "we've exchanged, but of course we're still not safe... we're not safe until completion". I bore this in mind when going through my own house purchase in recent months and was surprised to see that exchange did, in fact, mean you were (basically) "safe". Maybe I'm having false memories!!!

Suze

franklee

What happens if house prices have dropped by the time this gets sorted, will you still be obliged to pay the current price even though the delay wasn't your fault?

Do you have any insurance that will help with legal costs or extra living costs if this drags on?

Welshwoofs

franklee wrote: »

What happens if house prices have dropped by the time this gets sorted, will you still be obliged to pay the current price even though the delay wasn't your fault?

Do you have any insurance that will help with legal costs or extra living costs if this drags on?

Well oddly the market seems to be moving upwards a little in that area, but if it did drop then I'd guess it'd push through at agreed price. I'm not worried about that particularly as it's being bought to live in many years rather than looking for a profit. It's just the right house for us in the right location

We're fine with living costs - luckily we're able to stay on at our current house because we'd decided to rent it out rather than sell. My other half is running around like a mad thing trying to sort out some temporary sharing arrangement on practice rooms (he's a hypnotherapist) as he'd wound-up in preparation to move. It's going to impact on his earnings more than me, I work from home so it doesn't matter to me.

All in all we're in a strong position - although currently out of pocket and with a sizeable deposit tied up with solicitors until it's sorted we know we can ride it out. Whether they can...well that's a different matter.