Pulling out of house purchases at the last minute

ernie-money

Hi,

Just wanted to vent my anger really...
After a lengthy house buying process, we were finally near exchanging contracts (hopefully by the end of the week), having already paid for valuation, survey and solicitors costs totalling well over £500, only to yesterday receive a phone call from the estate agent, telling me that the vendors have changed their minds and are pulling out!
I just can't understand that there are no repercussions for doing this, is
anything being done about it?
I am so angry right now that I feel like writing to our local MP, or whoever could possibly do something about it. I checked for e-petitions on the number 10 website, and there are 2 on there on the subject, but they've not even got 10 signatures! (If anyone's interested in signing, here's the link: http://petitions.number10.gov.uk/Stop-gazumping/)
Does anyone know anything about this and whether the law is likely to change within the foreseeable future please?

withabix

The sellers have changed their minds - that's not Gazumping.

However, both are probably quite common at the moment:

Sellers pulling out: they feel that they are selling too cheaply in a 'rising' market, because they yearn for the boom times.

Gazumping: Desirable properties are few and far between at the moment, despite the recession. Buyers want the 'best' property their money can buy, so you still get gazumping in the current market, especially if it can make a short chain.

My mum sold her house in two days last month - and could have sold it ten times over since then, but she's sticking with the first offer as they are cash buyers/no chain and she is moving into a new retirement property and wants to get it over and done with!

bmunky7

Are they pulling out to sell to someone for more money? If only the house buying process could be sped up generally (I know some people do it in 5 hours! but for the majority) there would be less chance of these things happening.

ernie-money

withabix wrote: »

The sellers have changed their minds - that's not Gazumping.

According to Wikipedia: "Gazumping" is to refuse to formalise a property sale agreement at the last minute usually so as to accept a higher offer.

ernie-money

bmunky7 wrote: »

Are they pulling out to sell to someone for more money? If only the house buying process could be sped up generally (I know some people do it in 5 hours! but for the majority) there would be less chance of these things happening.

We haven't been told that they have got another offer, just that they don't think they got enough for the property... I just don't understand why they couldn't have decided that a few weeks ago - they accepted the offer (a grand off the asking price) over 2 months ago!

MissMotivation

ernie-money wrote: »

According to Wikipedia: "Gazumping" is to refuse to formalise a property sale agreement at the last minute usually so as to accept a higher offer.

So they haven't changed their minds? They've had a higher offer?

new_home_owner_3

we got gazzumped, lady accepted our offer of 180,000 pound, then a few days later she accepted a offer of 195,000 pounds, and i know the price as i know the people who have bought the house.

I havent told them we was the ones they had gazumped, but has it happens it worked out well for us, as i believe we have got a much better property and we completed last week.

I will tell them eventually, but i may take another 5000 pound off what we offered just to see their faces, having said that id be gutted to know i could have got a property 15000 pound less.

The law needs to change with this gazumping and gazundering, its well out of order, having said that ikm glad i got gazzumped.:D

rsykes2000

ernie-money wrote: »

According to Wikipedia: "Gazumping" is to refuse to formalise a property sale agreement at the last minute usually so as to accept a higher offer.

So have they had a higher offer or have they just pulled out ?

stanleyunwin

Unfortunately, things like this happen in life. It happens the other way too. The buyer is perfectly entitled to walk away until contracts are exchanged.

I'm a great believer in things happenning for a reason. This house wasn't yours to get and the perfect house for you is right around the corner.

Move on and start looking again. Good luck

housesitter

I'm all for the idea of some body holding a deposit in escrow and the person who pulls out after making a formal offer / accepting it loses their deposit to the other party.

Granted there are times where it is not black and white and offers tend to be subject to survey, however pulling out becasue of a higher offer you should be made to pay the costs of a person who you were quite happy to do business with up until that point.
Greed should have a price tag.

bmunky7

Sounds like they could be just trying to squeeze an extra little bit of cash out of you, since it's so late in the day (a week away from exchange)?