guzumping.

katieb.1983

Hi, I would just like some advice, im in the process of purchasing a property, i have a completion date of friday 22.1.10. (The property is a repossesion). The estate agents i purchased the property from placed a sold sign on the property, as soon as my offer was accepted. however the estate agents has now been taken over and the new agents have placed the property up for sale. I have contacted the agents and they have stated that until i have fully completed a sold sign will not be put up.

Is there anything I can do to ensure the completion goes ahead on that date? and get the property.

Thank-you

delmar39

Sorry I don't understand this. If you've put in an offer and it's been accepted and you're due to complete this Friday then surely the EA would not put the property back on the market or else they'll be losing commission? Plus, won't Solicitor's be involved in order to get you to the completion date in tact? I've never heard of an EA who doesn't want to sell a house to someone who is prepared to buy it and is close to completion - if this is the case they won't last very long. Is this a wind up?

maninthestreet

Have you exchanged contracts yet? It so, the vendor is contractually obliged to complete the sale.

nomnomnom

I was told by an EA recently that the way reposessions work, is that if your offer is accepted, then until the day contracts are exchanged, someone else can still outbid you. It's the risk you take with one apparently.

LandyAndy

maninthestreet wrote: »

Have you exchanged contracts yet? It so, the vendor is contractually obliged to complete the sale.

But if not, vendors of repossessions have to keep the property on the market.

ETA:nomnomnom beat me to it.

princeofpounds

If you have not exchanged contracts (completion is different and can come later, exchange is when you set up the legal differences) then you haven't got any sort of legal commitment and can be gazumped at any time.

Whether the sign says sold or for sale is a secondary point as that doesn't change anything legally except how openly it is being marketed.

If it is a reposession the firm has a legal duty to try to get best price, so they will not stop marketing it and they will advertise for offers to beat yours in a local paper. This is just the way it has to be.

I suspect your 'completion' date is exchange date, although the two things can be done in quick succession.

delmar39

I'm still confused. Are we saying here that the original offer has been rejected and the property is now back on the market? Regardless of whether it's exchange or completion this Friday I don't understand why an EA would behave as if the original offer wasn't made.

farmerboy

We are just about to put our property on the market, and will be instructing the EA that the 'Sold' sign doesn't go up until we exchange contracts at the earliest. This is not so anyone can gazump or anything like that, but any issues with surveys ect which may involve re negotiation could mean that the property may have to go back on the market. Potential buyers might think something is fishy if its sold, then not sold.

Thats just my reasons, and it could be the way the new EA works.

princeofpounds

I'm still confused. Are we saying here that the original offer has been rejected and the property is now back on the market? Regardless of whether it's exchange or completion this Friday I don't understand why an EA would behave as if the original offer wasn't made.

Repos never get taken off the market until exchange has taken place. The offer can be accepted but marketing continues. They even have to advertise for higher bids at least once.

I'm not quite sure why the sold sign went up but they couldn't have legitimately agreed to take the property off the market so no surprise it went back on again.

LandyAndy

delmar39 wrote: »

I'm still confused. Are we saying here that the original offer has been rejected and the property is now back on the market? Regardless of whether it's exchange or completion this Friday I don't understand why an EA would behave as if the original offer wasn't made.

Because, in the case of repossessions, the vendor is obliged to get the best price they can. Therefore, they market it right up to the point where contracts are exchanged. It is just one of the extra risks you run in buying a repossession. You may be outbid at the 59th minute of the 11th hour.

TBH this shouldn't be a surprise to someone buying a repo.

ETA. damn me beaten to the post again.:mad::rotfl: