Vendors pull out AFTER exchange of contract

Welshwoofs

picardygirl wrote: »

Welshwoofs - heard any more news today?

No, our solicitor is letting them sweat until the end of the week.

picardygirl

Welshwoofs wrote: »

No, our solicitor is letting them sweat until the end of the week.

Will keep fingers crossed for you .

wearside_2

I am finding this stressful and it's not my house! Can't wait until the next installment.
Keep your chin up!

gelato_cat

OMG, call me naive but I didn't realise that was how it worked! :eek:

Thanks for the info...

Suze

franklee wrote: »

In GDB2222's example there are still two people with claim to the same money. That it's now held in the client account of C's solicitor doesn't help A, the poor FTB at the bottom who parted with his hard earned in the first place.

Basically the system relies upon people completing after exchange. If B fails on both this sale and purchase through lack of funds the FTB is going to get shafted as C has his deposit and is entitled to keep it due to B's defaulting.

A can sue B but if there is no money left and B gets repossessed I think the point is the solicitors should check there is enough money available before they allow exchange to happen. So the system banks on this worst case never happening.

But then they haven't met Welshwoofs vendor. Still at least Welshwoof's deposit hasn't been passed up a chain

paroncider

After reading this thread, the nagging thing in the back of my mind is what's stopping the vendor from reading this?

As helpful as this may be to others that may find themselves in this situation, I would be wary of providing so much detail -- especially if you are planning on going to court. You don't want to give your game up!

I don't want to be a dark cloud but just thought I'd mention it, as no one else has...

Best of luck with this. Hopefully it can only get better.

Soot2006

If the vendor is reading this, they will hopefully gulp loudly and run to phone their solicitor to proceed with the sale ... I can't believe they don't realise what they've got themselves into, but it certainly is looking that way!

gizmo111

paroncider wrote: »

After reading this thread, the nagging thing in the back of my mind is what's stopping the vendor from reading this?

As helpful as this may be to others that may find themselves in this situation, I would be wary of providing so much detail -- especially if you are planning on going to court. You don't want to give your game up!

I don't want to be a dark cloud but just thought I'd mention it, as no one else has...

Best of luck with this. Hopefully it can only get better.

Doesn't really matter if they do read it - can't see anything on here that wouldn't been put to them by their solicitors and I guess also if it was the fact that they suddenly found that they couldn't afford to move their solicitor would have been up front and said so ratherthan the pathetic homeless kids excuse.
The OP has a case and the other side are in the wrong legally, so all they would gain from reading this thread is an understanding of how much this could cost them.

franklee

GDB2222 wrote: »

I guess you need a credit report on both your buyer and your seller before exchanging contracts. Now that is going to set the cat amongst the pigeons!

Make that on the whole chain of which you have no visibility or control beyond the links directly next to you ...

I think the thing is that over the years of a rising market everyone has got lax, if all goes wrong rising house prices bail everyone out. In a falling market with lenders more fussy and real large losses at stake then I would expect things to fall apart more than we are all used to.

Welshwoofs, thank goodness you are not in a chain :eek:

barnaby-bear

franklee wrote: »

Make that on the whole chain of which you have no visibility or control beyond the links directly next to you ...

I think the thing is that over the years of a rising market everyone has got lax, if all goes wrong rising house prices bail everyone out. In a falling market with lenders more fussy and real large losses at stake then I would expect things to fall apart more than we are all used to.

Welshwoofs, thank goodness you are not in a chain :eek:

Besides a credit check at exchange isn't going to rule change of circumstance/new info between exchange and completion.... redundancy at the moment is a big one - so it would have to be credit check at exchange AND exchange&complete same day....

franklee

barnaby-bear wrote: »

Besides a credit check at exchange isn't going to rule change of circumstance/new info between exchange and completion.... redundancy at the moment is a big one - so it would have to be credit check at exchange AND exchange&complete same day....

Good point. Exchange&complete same day would help my nightmare - the bank going under after exchange while my funds are in there awaiting transfer to the vendor. At present I've tried to keep under 50K per organisation but at some point the money would have to go in one big bucket at my solicitor. At least if the bank was to go before exchange I'd not get sued for failure to complete as I'd be in time to call the deal off. But that's over worrying - I hope and not that I'm buying as yet. (Sorry for the digression and someone pass me a tinfoil hat ).