Vendors pull out AFTER exchange of contract

GDB2222

Welshwoofs wrote: »

Well I hope the vendor's solicitors have had a good read about that 200 year practice and have advised them fully on the chances.

The down-side is that the vendors have seen Mr McGhee's advice somewhere, or they have a bullish barrister who wants to make a name for himself. So, the vendors may expect to lose at first instance but they then plan to take it to appeal. By the time that stage is reached, it should be 2012, with them still in the house and you renting somewhere.

The combined costs of both parties will by then be well into 6 figures and heading for the full value of the house. At that point, the case is no longer about the house but is instead about costs.

Bear in mind if you are on a conditional fee agreement that your solicitors' fees become payable if you win the case in court, regardless of whether the other party actually pay up. So, you may be doubling your own solicitor's costs, with no guarantee at all that the vendors will be solvent at the end of the case.

There have been a lot of people urging you to go ahead with this case, and I would expect you to win. However, there is a chance if the vendors decide to be stupid about it that they could drag you into a long-drawn-out and immensely costly legal case. Then they go bust at the end of it.

That's one reason why people try to settle court cases even if they feel their case is exceptionally strong. The other reasons are the time it all takes and the stress involved. I would strongly urge you to try to arrange a mediation meeting early on, with both parties and their lawyers present. A compromise now may be a much better deal for you than a win one or two years down the road. I assume that you have talked about that with your solicitors?

It's worth reading this:
http://en.wikipedia.org/wiki/Jarndyce_and_Jarndyce

Sorry to be so gloomy (or realistic, or both).

clutton_2

local small claims courts often offer free mediation services

it will look good if it is OP who initiates mediation ..... rather than the other side

alm721

Nothing really helpful to say, just wanted to wish you luck, I can't imagine how bad you must be feeling, some people really shouldn't be allowed to buy and sell houses!

parisjordana

we just signed our contracts today and was told if we didnt complete after exchange for whatever reason we will have to pay the owners of the house we are buying compensation of a rather large amount which is thousands.......no chance i said as we want this house so much.

I wish you luck with 22 pages to read I havnt got time to read all but I wish the op all the best.

Beardmidget

TonyMMM wrote: »

Nothing is final until completion ... a contract like this is only a "promise" to do something i.e. "I will give you £200,000 and you will give me your house".

Um... no.

A contract is particular and distinct from a promise.

A promise: A promises B XYZ

A contract: A promised B XYZ, B provides consideration

For a contract to be fully constituted- i.e. not merely a promise, there must be some consideration for the property/ goods/ service being provided. Consideration usually means money, and in the case of contractual exchange in land transactions, the deposit is considered to be good consideration. Consideration needn't be the full value, but simply good enough to constitute the contract.

superfran_uk

TonyMMM wrote: »

Nothing is final until completion ... a contract like this is only a "promise" to do something i.e. "I will give you £200,000 and you will give me your house" . Unfortunately it is still open to either party to change their minds - what the contract should then ensure is that the innocent party is properly compensated for the breach of promise.

Wow someone flunked their a-level law!
Day 1: What makes a contract binding

Welshwoofs

Well just to heap misery upon misery, we're currently waiting to hear whether a house my gran left to father and myself in the hills behind Mojacar in S.Spain was burnt down in the fires or not.

It's insured naturally, but if it has burnt I think I may just take all this as a big sign from an unseen force that I'm meant to go and live in a bloody yurt in the woods somewhere! It's a damn good job I have a pretty black sense of humour...I keep humming 'always look on the bright side of life' to myself.

ClootiesMum

I've been following your thread & can't believe the attitude of the sellers. And you latest disaster on top of that....

I wish you all the best and that both work out in the long run

And may your yurt never leak

Mexas

Welshwoofs wrote: »

Well just to heap misery upon misery, we're currently waiting to hear whether a house my gran left to father and myself in the hills behind Mojacar in S.Spain was burnt down in the fires or not.

It's insured naturally, but if it has burnt I think I may just take all this as a big sign from an unseen force that I'm meant to go and live in a bloody yurt in the woods somewhere! It's a damn good job I have a pretty black sense of humour...I keep humming 'always look on the bright side of life' to myself.

Wow that's some pretty bad luck

Soot2006

Sorry to hear about the Spain house -- fingers crossed you might yet have some good news from that front.