We've been Gazundered!

Blacksheep1979

Pont wrote: »

I don't know why we don't do as in France.

When an offer is made, and accepted by the vendor, both parties have to pay 10% of the purchase price to the notaire. Both parties then have a 8 day 'cooling off period', during which time either party can pull out without penalty. If after the 8 days elapse either party wishs to pull out they lose their 10% deposit which is paid to the other party. At least this way the wronged party, either the purchaser or the vendor, get some recompense for being messed around.

So what happens when you can't get a survey done within 8 days and find something wrong with the property?

wodgerdodger

Pont wrote: »

I don't know why we don't do as in France.

When an offer is made, and accepted by the vendor, both parties have to pay 10% of the purchase price to the notaire. Both parties then have a 8 day 'cooling off period', during which time either party can pull out without penalty. If after the 8 days elapse either party wishs to pull out they lose their 10% deposit which is paid to the other party. At least this way the wronged party, either the purchaser or the vendor, get some recompense for being messed around.

Similar process in Spain although you can write in opt out clauses such as subject to mortgage or survey.

LandyAndy

Blacksheep1979 wrote: »

So what happens when you can't get a survey done within 8 days and find something wrong with the property?

Or don't have 10% handily lying around in cash?

Blacksheep1979

LandyAndy wrote: »

Or don't have 10% handily lying around in cash?

pretty hard to get a mortgage without that these days.

westlondonbuyer

I've now heard of this happening twice, both times exactly the same tactic. Vendor is very reluctant to accept anything except the asking price. Prospective buyer offers the asking price, as this gets the house off the market and prevents other people seeing the house (removing any chance of gazumping). Buyer then has a buildings survey which (as these things always do) exaggerates the defects with the house. The mortgage company downvalues the house accordingly. The buyer reduces their offer with a "take it or leave it". Both times I've seen the revised offer (sometimes 10% or 15% under asking price) accepted.

JoeyG

I think there should be the option for the prospective buyer to pay a deposit of an agreed amount which should legally protect them from being gazumped, but at the same time they lose the deposit if they pull out or negotiate a lower price... it should remain an option so the prospective buyer can choose not to pay it but will not get the protection offered by it, and the vendor knows that if they don't get the deposit they should leave the property on the market until completion.

kmmr

Blacksheep1979 wrote: »

pretty hard to get a mortgage without that these days.

But in this case the seller needs to deposit 10% too. Which is the downfall of all these scenarios. Where is the seller going to get 10% of the sale price from before the sale goes through?

lee636

westlondonbuyer wrote: »

Buyer then has a buildings survey which (as these things always do) exaggerates the defects with the house.

Surely the vendor will ask to see a copy of the survey and be able to see if the buyer is trying it on, thus there is no way to exaggerate the ‘defects’.

tawse57

To the OP, what was your original agreed selling price and then how much lower did they offer at the last minute?

People tend not to mind gazumping but loathe gazundering - hmm...

The UK is so messed up re house prices.

lee636

JoeyG wrote: »

I think there should be the option for the prospective buyer to pay a deposit of an agreed amount which should legally protect them from being gazumped, but at the same time they lose the deposit if they pull out or negotiate a lower price... it should remain an option so the prospective buyer can choose not to pay it but will not get the protection offered by it, and the vendor knows that if they don't get the deposit they should leave the property on the market until completion.

So what happens if the survey throws up a massive problem? The buyer looses their deposit if they try and get a reduced price.