Playing Buyers At Their Own Game.

PJD

"Buyers" putting in offers & then pulling out seems to be rife. I keep hearing it from all over the place. I've heard of buyers putting in an offer on 3 or 4 places at once, just to keep them free because they haven't made up their mind which one they want yet... - then pulling out of all the ones they dont' want.

The law is ridiculous, no obligation to buy until an exahange is made? I could go around making offers on houses all day long.

The next time I get an offer, why should I take my property off the market? Why should I cease accepting other offers? I can understand the EA in backing off to push for the sale, as it'll look bad on them.

Until the exchange has been made, neither party are legally obliged to go through with it, & if buyers have 2 or 3 properties on the go, why shouldn't I have 2 or 3 buyers!

Thoughts?

lynzpower

Id agree with you to say, its not fair on ALL buyers is it. Some of them will do things as they are meant to be done, and its not really fair of you to be pulling out as they are paying up for solicitors fees/ searches and the like. Also not fair on some buyers who unfortunately have poor solicitors who dont always do what they are meant to do.

But there HAS to be some other way round this problem?

PJD

lynzpower wrote:

But there HAS to be some other way round this problem?

Just said on another thread, is it reasonable to ask for say 2% or 5% deposit from a buyer once a price has been agreed, - & then promise to take the property off the market? Or will buyers not go for that?

lynzpower

Not a bad idea, but not sure where the money would be held, ie if Im selling my place my equity will be tied up in the bricks, till its sold itself. 5% of this place would be 10k, and I certainly wouldnt have this upfront to buy. ( along with sols fees, mortgage feees blah blah)

PJD

Well, I would be happier that a buyer was genuine & had good intentions if they paid me a deposit of something as little as £250. I'd be happy to take it off the market, & at least I'd know they were serious.

If they pull out, then they lose the deposit.

linlin_3

PJD wrote:

Well, I would be happier that a buyer was genuine & had good intentions if they paid me a deposit of something as little as £250. I'd be happy to take it off the market, & at least I'd know they were serious.

If they pull out, then they lose the deposit.

As the law stands in England & Wales, that can't be done. All contracts for property/land must be by deed.

I agree with your sentiments and would like to see the law changed - perhaps the same system they have in Scotland????

lynzpower

What do you mean Linlin , what happens in Scotland thats different to here?


Although I do think that HIPS ( if they do what they are meant to ) would eae the situation, you can see warts & all what the property is, if you want it trhe process to exchange should be muhc quicker - possibly meaning they will back out less. ALtohugh the converse could also be true if they havent had to cough for searches etc, wheres the need to cling on?

I just dunno

silvercar

When we bought in 1986 and 1988 we were required to give the EA a £200 deposit. They seem to have gone out of fashion now.

Personally, once the buyer has booked the search you know they have parted with money, so it would be unfair to accept further viewings without informing the buyer that you are still showing.

klaatu

The system in Scotland is such that once you have made an offer (which has to be done through a solicitor) and had it accepted, you have entered into a legally binding agreement.

Steve (in Scotland)

lynzpower

Ah- ha

Yep, I think that sounds like something that might be a good idea here.

I take it you guys see the surveys etc in the homebuyers?

How is it enforced? If your buyer pulls out do you sue them? Small claims type thing? What happens?

klaatu

It's one of the good things about the Scottish system. Unfortunately it means you really have to get your survey done before you offer. What can happen is that if several people are interested in a property, the vendor sets a closing date, and you submit your best offer by that date. If you end up not being the lucky winner, you've paid for a survey for nothing.

And yes, if the buyer or seller pulls out once the offer has been agreed, the other party can sue.

Steve