Vendors pull out AFTER exchange of contract

benood

Anyone know if you could run a credit check on the vendors to give yourself a bit more background to their financial position?

Good luck with it.

silvercar

Welshwoofs wrote: »

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

That is a good sign. If the seller's solicitor thought that their clients were not going to be persuaded to complete, they would have sent the deposit back to your solicitor.

thifty

Nothing really useful to say to help welshwoofs, just wanted to offer you my support.

dfh

Maybe the OP's partner could hypnotise them into accepting the sale !

picardygirl

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

Have i read this right, your solicitor doesnt require your deposit until the day before completion, ie after you have exchanged?? Surely this cant be right, can it, how would/could a solicitor exchange contracts without actually having the deposit to exchange with, as you could say at completion, sorry dont have the money! Whenever we've moved our "deposit" has been in the house we were moving from on so never dealt with cash desposits as such (well my OH did on his first house, but that was before i lived with him). A colleague at work recently bought her first house and she had to ensure that the deposit was paid in full to the solicitor prior to exchange of contracts.

Welshwoofs - just to add i wish you all the best in sorting this out with a satisfactory outcome for you, and i would be doing exactly the same as you. Cant believe they've tried to pull at heart strings with a begging letter ...... speechless, they should have thought about that prior to exchange. I would make a comment back saying this is a business transactions and should be dealt with in such a manner.

We had a buyer pull out on day of exchange and that was bad enough but legally they were within their rights, that was purely because she changed her mind and decided to move in with her boyfriend.

Cant offer any sound advice i'm afraid, but have fingers crossed for a fast and acceptable outcome for you.

Hippychick

picardygirl wrote: »

Have i read this right, your solicitor doesnt require your deposit until the day before completion, ie after you have exchanged?? Surely this cant be right, can it, how would/could a solicitor exchange contracts without actually having the deposit to exchange with, as you could say at completion, sorry dont have the money! Whenever we've moved our "deposit" has been in the house we were moving from on so never dealt with cash desposits as such (well my OH did on his first house, but that was before i lived with him). A colleague at work recently bought her first house and she had to ensure that the deposit was paid in full to the solicitor prior to exchange of contracts.

Usually to exchange contracts you only need to pay your solicitor a 10% deposit. If you are having a 25% deposit say then you pay 10% to exchange and the remaining 15% before you complete.

We did it this way as well in order to maximise our interest on the savings rather than have the money languishing in our solicitors accounts for 4 weeks.

picardygirl

Hippychick wrote: »

Usually to exchange contracts you only need to pay your solicitor a 10% deposit. If you are having a 25% deposit say then you pay 10% to exchange and the remaining 15% before you complete.

We did it this way as well in order to maximise our interest on the savings rather than have the money languishing in our solicitors accounts for 4 weeks.

Oh is that how it works, like i said, never actually done cash deposits so didnt know, colleague at work put down 20% deposit in May and had to give the whole deposit to her solicitor prior to exchange.

So how does the solicitor going about ensuring their client has the funds, even if the client was to show proof (ie, bank statements) prior to exchange they could spend it before completion! Sorry, Welshwoofs dont mean to hijack but as someone bought this up as a possible scenario in your case i've curious now. I know this isnt the case in your sitatuation x

ginvzt

When we bought our house, the solicitors sent us a cheque for the interest our money earned whilst in their account until the completion - it was more than it was earning in our bank account and we were joking that we should have transferred money earlier to get more interest;)

Really, I hope all this goes well for you - it is unbelievable what some people get up to!

GDB2222

silvercar wrote: »

That is a good sign. If the seller's solicitor thought that their clients were not going to be persuaded to complete, they would have sent the deposit back to your solicitor.

Just to look on the black side for a minute, the OP's deposit will have been used by the vendors as their deposit on the place they are buying. If the vendors have defaulted on their purchase, then they have lost their (ie the OP's) deposit. I was really surprised to find that this is how the great British house purchase machine works. In fact, I am surprised that it works at all.

Welshwoofs

dfh wrote: »

Maybe the OP's partner could hypnotise them into accepting the sale !

lol "Don't look around my eyes, don't look around my eyes...look into my eyes. You're under. When you wake you'll feel the sudden need to get out of your property at all costs. 3, 2, 1 - you're awake"

If only :rotfl: