Buyers not able to come up with cash - Scotland

rubyrara

I'm due to finalise the sale of my flat in a few days however just received a letter from the buyer solicitor to say the couple buying my flat are still desperately trying to sell theirs. They have apparently reduced and fixed the price of their flat and are attemping to get a bridging loan to cover.

My solicitor however thinks it's unlikely they will get a bridging loan in this current ecnomic climate and has therefore suggested we re-market the property at their cost. They then have 2 weeks to come up with the cash before we can rescind the missives.

Can someone please help if this is the right thing to do? And what exactly does 'rescinding the missives' mean? I'm also not sure what I can claim for in terms of the flat....there is some equity that would be released. I am already in another property so no chain or anything to worry about.

Thnx in advance

BuntyB

Morning Rubyrara
You need to go back and discuss it with both your solicitor and estate agents. Rescinding is 'withdrawing' from the contract. Check with your solicitor to see if you have a binding contract as it would not be a wise thing for a purchaser to enter into a binding contract to buy a new property whilst not having a binding contract for their property (and particularly one that still on the market).

all the best

googler

Did the buyer's solicitor and your solicitor conclude missives on it?

If so, then strictly speaking they're liable to pay you the full purchase price, as that's them made a legal commitment to buy. In practice, it may be difficult to squeeze this out of them, and you may have to come to some other agreement. There was a recent court case publicised where a buyer failed to complete (pay the balance) on an off-plan purchase, the developer took him to court, and the judge found in favour of the developer - verdict was the buyer owed the developer the full purchase price, regardless of whether he took possession or not

Rescind the missives - basically, take back (rescind) all commitments and promises made in the missives (exchange of letters) between the two solicitors - in other words, withdraw from the agreement.

If missives weren't concluded, either party can withdraw with no financial penalties.

For the definitive version, consult your solicitor - it's what you're paying him for!

rubyrara

They have been concluded yes. Just spoke with solicitor. It's all just a pain though!

googler

So, at the very least, your solicitor will be claiming back all your out-of-pocket expenses with regard to re-marketing the property (assuming the buyers don't proceed at all) from them.

Shows the perils (from their point of view) of making an offer on a property when you're not certain of having your own sold...... I'm surprised their solicitor let them get to this stage without having a firm offer or sale on their property.