Vendors pull out AFTER exchange of contract

ILW

Instruct you solicitor to inform them that you are prepared to let them buy out of the contract for say £50k. That should get a reaction.

tuggy12

Welshwoofs wrote: »

It does enrage me because it seems to me that it's symptomatic of the general lack of personal responsibility around these days. Too many people expect others to clear up their mess or bail them out when they've made bad choices...........

Absolutely spot on; I would be livid and would pursue them rigorously.

Hippychick

I can't believe how they are acting.

It annoys me that if a buyer pulls out they lose 10% of the agreed price yet the only recourse for a buyer if it's the other way round is to go through court and try to force the sale through. It should be reciprocal in the contract, i.e. the vendor should pay the buyer 10% that would be sufficient incentive not to pull this kind of stunt.

I hope they realise how stupid they are behaving over the weekend and complete soon. Good luck.

barnaby-bear

Hippychick wrote: »

I can't believe how they are acting.

It annoys me that if a buyer pulls out they lose 10% of the agreed price yet the only recourse for a buyer if it's the other way round is to go through court and try to force the sale through. It should be reciprocal in the contract, i.e. the vendor should pay the buyer 10% that would be sufficient incentive not to pull this kind of stunt.

I hope they realise how stupid they are behaving over the weekend and complete soon. Good luck.

I'm sure my contract did have something to this effect, although no 10% stumped up as with a buyer.... however there was something about how we'd have to pursue them for it, which if negative equity/debts as sounds like the case here there'd be little to pursue. Ringfencing 10% from the vendor if they are also stumping up a 20% for the next house would make moving rather difficult for those without low LTV so I don't know how you could in practice make this work.

I wonder if they have insufficient deposit/equity to get a new mortgage or even a loan to pay off the negative equity - exchanged on a approval in principle but have been unable to obtain a mortgage before completion once the state of their finances became clearer.

clutton_2

""exchanged on a approval in principle but have been unable to obtain a mortgage before completion once the state of their finances became clearer.""

if they have done this - this is mortgage fraud into the bargain .... as they always knew the state of their own finances

chickmug

clutton wrote: »

""exchanged on a approval in principle but have been unable to obtain a mortgage before completion once the state of their finances became clearer.""

if they have done this - this is mortgage fraud into the bargain .... as they always knew the state of their own finances

I fully agree and their solicitor would not have let an exchange proceed without a watertight & written offer from the lender.

barnaby-bear

chickmug wrote: »

I fully agree and their solicitor would not have let an exchange proceed without a watertight & written offer from the lender.

Occassionally mortgage offers can be pulled after exchange and before completion, particularly if new information arises on a credit check between the two, a new CCJ could have been imposed or alike.... the solicitor will let exchange proceed without funds in the bank but is bound to advise the risks of not revealing info. or not having an offer in place (as seems too common on some people who exchanged on new builds off-plan 2 years ago and now have to complete). It's possible their lender offered to port the negative equity but has discovered something new or something else has happened.....

barnaby-bear

clutton wrote: »

""exchanged on a approval in principle but have been unable to obtain a mortgage before completion once the state of their finances became clearer.""

if they have done this - this is mortgage fraud into the bargain .... as they always knew the state of their own finances

or their finances are house of cards starting to tumble - starting to default, CCJ popping up, creditors getting wind of house sale baying for blood...

skiTTish

Were all sat here as judge,jury and executioner but we dont know what happened ?!
What if one of them lost their job or found out they are terminally ill?

chickmug

hi Barnaby Bear

I accept what you say but never came across it.