Contract from the off

kenshaz

Should we have the same legal framework as Scotland regarding contract from the off,once you agree ,no going back on your word

lilyann1

Yes it would save the heartache of people backing out near exchange of contracts when you have been in the process for 10 weeks or so just they don't feel like buying the property any more!!!! Which is what happened to us 3 weeks ago.One person backs out but it wrecks another 4 families lives!!!

lush_walrus

I think so, it would make life easier and would remove a lot of day trippers out of the market. Unfortunately, the Scotish system has now changed for the worse too. The obligation of the contract has been altered so that it is now possible to back out of buying. I can't remember now the whole details of it, but perhaps someone Scottish will appear who knows more!

Ian_W

Mines the first no vote simply 'cos it wouldn't be workable without quite a few other changes. How can you be bound before you know you lender will lend what you need on that property? Would you want to be bound before a survey or pay for a survey before your offer is made when it may not be acceptable?

In Scotland I believe you can waste money on a survey for a number of props before someone accepts your offer on theirs. I think that has now changed as lush walrus says in that non-binding offers can be made "subject to survey" but the process still becomes binding more quickly once lawyers exchange "missives" rather than contracts. Even for that to work we'd have to fall out of love in England & Wales with chains and use bridging finance and short term rentals more - if you make the offer acceptance binding you have to put a completion date in fairly early in the process.

If the HIPs Home Inspection is seen as credible enough for lenders to accept it as showing the property is a suitable security and if more valuations are carried out by desktop means as a result then there is potential to make it binding earlier in the process. Based on everything else remaining status quo, IMO it wouldn't work and wouldn't be beneficial.

kenshaz

Ian W some valid points,will some-one join you,at the moment you are Ian with no mates

F_T_Buyer

I don't know much about Scotland's system, but it sounds superiour to ours. I would however like it, and like the fact that a HIP and everything necessary is done before making a sealed offer.

But i'd expect SPLINTA, Kirsty Allsop and others to be more against that system than the current HIPs.

kenshaz

Ian no mates is feeling very lonely in his telephone box,he has put forward a good argument,will some-one help him out

Debt_Free_Chick

Mrs Sceptical here ..... perhaps the new HIPs are the first stage towards moving to a Scottish type system. The Government's view (not shared by many) is that the HIP gives you all the information up front. So perhaps their next argument will be "so no need to keep the current system - on offer, go straight to exchange"

BobProperty

Ian W is spot on with the situation. If you can avoid the multiple survey problem then the scottish system seems better, but I'd want more details on how it could be improved.

Ian_W

Ian no mates, calling from his phone box here ... And what about searches? One of the biggest drawbacks of HIPs according to critics are that searches will be out of date after 3 or 4 months.

When you make an offer you haven't had any searches done. So that lovely rural view over open countryside might be just where HMP are going to build a supa-max high security prison. OK, I know I'm being silly as no-one but Council Tax rebels get sent to prison these days, so perhaps it's an electronic tagging facory! Or Heathrows Terminal 8! But as the buyer you're happy to be legally bound to the sale before any LA, environmental, mining etc searches are carried out?

Because we're so fond of chains when it comes to buying and selling houses how can you set a completion date? Will it have to complete within a set number of months or by a specific date? Bear in mind, a chain exchanges when all parties within it are in a position to proceed and this can take several months from the first offer in the chain being accepted, so how would that work?

Perhaps offers should be legally binding, subject to survey, subject to searches and subject to a chain coming together - that's really not very binding at all - in fact it's about the time exchange takes place now!!

terrierlady

closest comes with new homes developers looking to exchange within 28 days and look at the problems that pulls up, many people say they are proceed-able but in truth are not, their cash can be in shares, in an investment account that requires so many weeks notice etc.Being sstc then their buyer pulls out leaving them back on the market .