Simultaneous Exchange/Completion... Erk!

uglybug

Well, Oddgy, we are supposed to complete in 2 days, so I'll be giving you some positive support or really depressing you on Friday!!

izoomzoom

pawpurrs wrote:

If you havent got a deposit, then for goodness sake speak up now, as you will need to exchange and complete on the same day, and this is a huge inconvienance to the rest of the people in the chain, if there is one. Better to prepare everyone in advance than spring it on them at the last minute.

Personally, I would not accept an offer from a FTB with no deposit, unless I was desperate, as I wouldnt want to be in that situation. EAs should make sure that they ask this question from FTB as I think its a vital piece of infomation.

Oh, we have made it clear that we have no deposit.

And there is no chain, just us and the vendor.

If they really want to be pigs in the mud about it, I am sure my sol wouldn't mind me using his money (put aside for his fees) as a deposit.

That is, if we ever get to the exchange !

pawpurrs

OK, if the vendors arent buying on it makes no difference, and yes you could use that money, hope it all goes well for you.
Tell me about it, wish we would exchange, we are ready,its everyone else!

Oddgy

uglybug wrote:

Well, Oddgy, we are supposed to complete in 2 days, so I'll be giving you some positive support or really depressing you on Friday!!

I really are hoping that you have no hick ups, as it will be so gutting. However - it all depends how much confidence you have with your buyers.

Ours have started messing us about in every sense of the word - so my confidence in them has dramatically reduced. Which now concerns me should we go ahead with a Simultaneous Exchange and Completion.

Oddgy

pawpurrs wrote:

OK, if the vendors arent buying on it makes no difference, and yes you could use that money, hope it all goes well for you.
Tell me about it, wish we would exchange, we are ready,its everyone else!

Our vendors arnt buying either they are moving in with family, moving into a new build march time. So i cant understand why their solicitors have advised such a thing.....!!

pawpurrs

Because it gives them more protection, thats why

annie123

As an estate agent this has come up many times before.
Buyers dont always tell us they are getting 100% mortgage. Most of the time it goes fine, however, I would worry myself about packing all the contents of my home and keeping my fingers crossed on the day.

I have had sellers say no deposit no sale. I then call they buyers and tell them its off unless they can find £1000 or sometimes a bit more.

I have yet to find any buyers,who, when they tell family and friends that they are about to loose they first purchase are unable to come up with the amount. It is a short term loan, often from several people, which is paid back with the mortgage monies.

Then say a week can be had between exchange and completion, and should the buyer default the seller has at least enough to cover costs and less stress of doing it all in one day.

If a ftb can't come up with £1000 from some source, then they shouldn't be buying yet. Things go wrong and money is always needed for emergencies

Oddgy

I cant get my head around this.

Sureley, by having an exchange date two weeks prior to completion, should anyone pull out prior to the completion date, after the exchange date, legal proceedings can be issued as they are fully liable as contracts are signed. I realise the vendors wont be able to keep hold of any deposit as no deposit has been given, but the people that have pulled out or not gone ahead will be Legally LIABLE to be sued.



However, by doing a simutaneous exchange and conpletion, if on this particular day they have second thoughts before signing the contracts while evryone is rushing around loading vans up then sueley we all will be worse off as we would have paid for removals etc. And we have no way of suing them as they havent done anything wrong, as they pulled out before Signing the contracts.

Is this right or have i got muddled fuddled?

pawpurrs

I am also an agent annie, and I feel its my job when presenting offers to give the vendors the whole story, so that includes what deposit any buyer may have, any chain details are verified, if they have a mortgage agreed in principle and so on, I would consider it negligence not to do so.
Obviously people dont allways tell you the truth.
But I totally agree, most people should be able to scrape up a deposit from somewhere. I dont think people should buy without one.

rome_2

pawpurrs wrote:

If you havent got a deposit, then for goodness sake speak up now, as you will need to exchange and complete on the same day, and this is a huge inconvienance to the rest of the people in the chain, if there is one. Better to prepare everyone in advance than spring it on them at the last minute.

Personally, I would not accept an offer from a FTB with no deposit, unless I was desperate, as I wouldnt want to be in that situation. EAs should make sure that they ask this question from FTB as I think its a vital piece of infomation.

This is not true that you must exchange and complete on the same day if you haven't got a deposit. I bought my first flat with a 100% graduate mortgage from HSBC and some of the funds were released early to cover the deposit.

Our EA and solicitor were both used to dealing with FTBs with 100% mortgages and didn't see it was a problem. I would suggest that anyone getting a 100% mortgage checks with their lender about the deposit and anyone thinking of accepting an offer from a FTB with a 100% mortgage asks the EA to check how the deposit will be paid rather than rejecting an offer.