Dodgy buyers?

welnik

I'm in the process of selling my house and my buyers announced to me yesterday that they want to exchange contracts and complete on Friday! The reason being they are going to be homeless. Im rather annoyed because they have now said that their deposit is coming from the sale of a house and I had been led to believe that they were with family and had nothing to sell.

I've just searched the voters roll to discover that the address where they are living also has a next door neighbour with the same unusual surname.

My solicitor advises against exchanging and completing on the same day and thinking about it, I can just see my buyers saying on the day, that they havent got enough money.

Its all very curious, anyone had a similar situation where they have been lied to by their purchaser?

Doozergirl

I've had family in the same situation. Exchange and completion on the same day because of their buyer holding things up. He then turned around on the day when everything was in the removal van and demanded £15k off the price before he would exchange. Held to ransom, they found half from the next people up the chain and forfeitted the other half themselves.

If you think your buyers are going to try and do the same, then there's no reason to exchange and complete on the same day, especially if the funds are coming from a house sale; they can exchange and complete a week or a few days after just like anyone else.

Most people don't have homelessness sprung on them with 2 days notice. I'd be a little wary too.

silvercar

So they want to exchange and complete on friday and the deposit is coming from their house sale?

So they must be about to exchange and complete on this on friday also. Ask the solicitor or EA to verify this. Where are you going to live?

We should try and accomodate our buyers, they are precious; but don't be bullied.

As for lying, most estate agents tell lies (white ones, grey ones and great big whoppers) so don't be surprised if some of the messages you get are not 100% truth.

welnik

I have asked my solicitor to question the buyer's solicitor and they are not dealing with the sale so cannot give any information. They have just got confirmation from their client that she can get hold of the deposit on Friday. there is something fishy going on, dont you think?

Astaroth

The problem is that sellers lie, buyers lie, estate agents lie, solicitors dont often lie but they do dodge questions. All this is bad enough but then you go and form a chain of them.

Poodlecrazy

Hi

It may not necessarily be fishy but I was always under the impression that exchange and completion on the same day only really happened with vacant properties. Got to say I wouldn't fancy having everything loaded up in a removal van in case they then pulled out. I was selling a vacant property with exchange and completion due on the same day. On the actual date, the buyer demanded a reduction of £20K. As it was a vacant property and I wasn't actually moving anywhere, I was able to tell him to shove it!!!

If you are movign on yourself then I think it is only fair to have at least a couple of days between exchange and completion so that you can make arrangements safe in the knowledge that you are actually definately moving.

Good luck though!

silvercar

Exchange and completion happens on the same day when people are getting a 100% mortgage. They have no funds to put down as a deposit so need to exchange and complete at the same time.

welnik

Update!

My buyer telephoned to say that she has transferred her deposit from her bank account to her sol's bank account on Friday. Rang my sol on Friday who said he would be aiming to exchange contracts today.

Ive just spoken to my sols who have said that my buyer's solicitor is not in work today (no reason given) so exchange will now be tomorrow with completion on Friday. He confirmed with my buyer's sols that they are in receipt of the deposit she paid.

What I find wierd is that that deposit won't be handed over to my solicitor until completion which is supposedly Friday. If we are to exchange and at the last minute my buyer decide they are short on funds, obviously we would tell them were to go, but apparently, they still have 10 days after the date set from completion in which to come up with the money to complete.

I just have this fear that they are going to try and rip us off somehow.

Jorgan_2

How has she transferred the funds, it may the cheque needs to clear so may take 'til Friday to clear. Make sure your buyer is advised that exchange hasn't taken place due to her solicitor being absent. Their solicitor shouldn't exchange unless he/she is sure they will have funds to complete on the given day.

welnik

When signing the contracts, out solicitor advised that because exchange is on MOnday with completion the following friday, the deposit money from our buyers will be transferred to their solicitors, held until Friday, and then the whole lot is sent on Friday to my solicitor for completion.

My buyer reckons she did a bank transfer and reading a letter from my buyers sols to my sols, they said that money was being transferred on Friday ready for today and that the earliest they could exchange was today. Im presuming its by telegraphic transfer.

I just cannot get in the mood for packing now as I just feel like something is going to go wrong, particularly as exchange was supposed to be today. Ive not been told why the buyer's sol isnt in work today but in a prev letter, she said that the earliest my buyer could complete was today, its seems odd to put that date and then be out of the office. Unless, she is off sick or something.