Vendors pull out AFTER exchange of contract

Welshwoofs

andrew09 wrote: »

From reading another thread on this site, it suggests you can force them to honour the contract and move out. This is way more serious a matter than them paying back your deposit and paying a few solicitors fees.

(I can't link to the thread as I'm new!)

Well that's what I would think - I can't imagine that if a buyer pulls out they incur all sorts of penalties but a seller can pull out and bascially say "oh well, screw you". The initial impression from our solicitor (conveyancing, not contract law) was that a court battle could be long, drawn-out and expensive...but there's the principle. I just don't people should get away with breaking contracts, causing financial loss/inconvenience/emotional upset etc without penalty.

Soot2006

What a shocker .
We are supposed to be completing tomorrow and the thought of it all being taken away knocks me for six! Keep us updated with what your solicitor advises. I can't imagine these vendors will go unpunished!

lincroft1710

Over 35 yrs ago son of work colleague had same thing happen to him. Long time ago, I know, but from memory it took at least 2 years to arrive at satisfactory outcome. Vendor had to sell him house at the original agreed price. As house prices had increased by 25 or 50% (can't remember which) in the 2 years or so, vendor lost out big time.

However as colleague's son was unsure of how friendly neighbours would be, as no doubt vendor had painted picture of being innocent victim, he sold house on.

sandraslice

It happened to someone we know whose sellers wanted to pull out between exchange and completion on a sale of £450,000. They settled to our friends before completion on a deal of £60,000 plus the deposit of £ 45,000 back.. All in all our friends were very happy, as house prices continued to plummet and they managed to buy a better place with an extra 60k off the mortgage This only happened late last year..

They didn't find out why they wanted to pull out, only that they were desperate to..

The friends solicitors had never heard of it before either. I am sure, maybe wrong, but the solicitor said if they pulled out before completion without agreeing to pay the monies then they could be sued for "consequential losses", so in conjuction with the sellers solicitors the others paid the money the day before completion was due to happen..

gauly

lincroft1710 wrote: »

Over 35 yrs ago son of work colleague had same thing happen to him. Long time ago, I know, but from memory it took at least 2 years to arrive at satisfactory outcome. Vendor had to sell him house at the original agreed price. As house prices had increased by 25 or 50% (can't remember which) in the 2 years or so, vendor lost out big time.

The problem with falling house prices (in general anyway) is that you may not want the house for the price you offered in two years time!

lincroft1710

Good point, gauly, so OP should perhaps consider claiming for consequential loss, if he decides to sue for completion of sale.

MissMotivation

Get on the phone to your Solicitor first thing in the morning. The Vendors are in breach of contract and at the very least you will get your deposit and any costs back but your Solicitor has to be very clear on this.

Awful situation.........in 16 years of being an EA this has never happened to me.

Irrelevant to you really but the Vendors will be liable to pay their EA fees too as they have exhanged and fees are due after exchange of contracts.

Silly silly people!

Cissi

Yikes, do keep us up to date with what happens! As someone else who is between exchange and completion I wish I hadn't looked at this thread... We've given notice on our rented house so we really would be homeless - with two small children and businesses to run that doesn't bear thinking about :eek:

Good luck, I really hope you somehow manage to sort things out and complete tomorrow as planned.

KiKi

I'm so sorry to hear this - and as shocked as everyone else.

You should be able to claim for your deposit, your costs, and any immediate costs of having to rent, deal with your property, and storage of your things. One reason people *don't* pull out after exchange is because they will incur TENS OF THOUSANDS of pounds to do so.

I'm not sure they've been advised properly, or that the message has been passed onto you correctly, or that it can really be a money issue as this is going to cost them big time.

Perhaps you'll find out tomorrow that there's a misunderstanding / pushing it for more money and it will all go through after all.

All the best - and please let us know what happens.

Cheers
KiKi

jiggy2

no concrete solutions unfortunately

http://england.shelter.org.uk/get_advice/finding_a_place_to_live/Buying_and_selling/selling_a_home/exchange_and_deposit

http://www.guardian.co.uk/money/2007/dec/19/1

http://www.e-conveyancing-solicitors.net/alljargons.php#Exchange of Contracts