buyer pulled out, i'm now out of pocket

diable

Count yourself lucky you only lost a bag of sand, it could have been worse.

Richard_Webster

The estate agents should have done some checks on his finances. They should have asked who he worked for and how much he earned - how much was commission, overtime etc. If he admitted that a substantial proportion was commission/overtime or that his job was a temporary one, then they should have told you that when they put his offer forward, and explained there was some risk he wouldn't get his mortgage.

I'm not saying they would necessarily have found out the flaw in his finances but the more obvious points should have been checked. Did they ask those questions?

Some people think that estate agents don't do anything but advertise property - but a good estate agent will do all he can to make sure that the buyer can proceed and that the sale goes through.

poppysarah

mk1Karl wrote: »

Hi all, this is my first post here so please be gentle

typical story, found a house that a wanted to buy (wasn't looking to move but it was one of those "its the one for me" houses), i put in an offer which was accepted, put my house on the market and all was looking good.

Next time you aren't looking to move - DON'T look at houses for sale.

Gwhiz

poppysarah wrote: »

Next time you aren't looking to move - DON'T look at houses for sale.

Agreed. Or sell your house and move to rented so yo do not get stuck in a chain when you find that "ideal" house.

mk1Karl

poppysarah wrote: »

Next time you aren't looking to move - DON'T look at houses for sale.

houses? there was just this one. i noticed it for sale when i went to visit a mate, (few doors away) and he told me the elderly owner had passed away., i asked my mates mrs to do a bit of door knocking in the street to see if anyone had a key and it went from there.
from noticing the sale board outside to putting the offer in was less than an hour.

as above, i wasn't looking to move, just purely for this house.
The rest of the houses in the street have all been finished to a good standard so on the off chance that one comes up for sale then it will be beyond my budget. so its now pointless selling mine


similar when i bought my current house, elderly owner had passed away, my dad knew his son and my offer was in before the old boy was buried, no estate agents.

hcb42

Richard_Webster wrote: »

The estate agents should have done some checks on his finances. They should have asked who he worked for and how much he earned - how much was commission, overtime etc. If he admitted that a substantial proportion was commission/overtime or that his job was a temporary one, then they should have told you that when they put his offer forward, and explained there was some risk he wouldn't get his mortgage.

I'm not saying they would necessarily have found out the flaw in his finances but the more obvious points should have been checked. Did they ask those questions?

Some people think that estate agents don't do anything but advertise property - but a good estate agent will do all he can to make sure that the buyer can proceed and that the sale goes through.

i realise you are a conveyancer and a lot closer to the process than I will ever be, but I have never given this kind of information to an Estate Agent, for six purchases and one aborted purchase (chain collapsed!) in both England and Scotland, and furthermore, if I was asked, I would tell them politely where to go...the mortgage offer would be with the solicitors, surely..and Estate Agents are not qualified financial advisors, even having this information doesn't mean they can use it effectively

Niowrtt

mk1Karl wrote: »

i'm now in a position where i am just under a grand out of pocket and have lost out on the house that was perfect for me.

has anyone else been in this situation? and have they got any money back from the "buyer" due to being out of pocket?

Yeah, four times now for me, having lost >£1,000 on surveys and solicitor fees for houses that I've lost as a result. On buyer number five, and moving to rented (IF this one goes through) so I don't have to suffer this nonsense with chains - but at a big loss even compared to the worst of the previously accepted offers AND losing thousands due to the early repayment charge on the mortgage, since I'm no longer porting it.

The buyer has no liability at all if they pull out. Same the other way around. Only at exchange are you safe, you have to trust that everything will work until that point. Property laws need fixing.

I assume you are okay where you are currently and that you want to move, not have to move. So consider the bright side.

mk1Karl wrote: »

at the moment i'm beyond angry, i feel like i have been truly screwed over.

Dealing with property is the most depressing, stressful and expensive thing I have ever done.

mk1Karl

Niowrtt wrote: »

Yeah, four times now for me, having lost >£1,000 on surveys and solicitor fees for houses that I've lost as a result. On buyer number five, and moving to rented (IF this one goes through) so I don't have to suffer this nonsense with chains - but at a big loss even compared to the worst of the previously accepted offers AND losing thousands due to the early repayment charge on the mortgage, since I'm no longer porting it.

The buyer has no liability at all if they pull out. Same the other way around. Only at exchange are you safe, you have to trust that everything will work until that point. Property laws need fixing.

I assume you are okay where you are currently and that you want to move, not have to move. So consider the bright side.

Dealing with property is the most depressing, stressful and expensive thing I have ever done.

i have to consider myself relatively lucky after reading that!, you must have the patience of a saint,
yes where i am now is fine (will want to move for the better secondary schools but as my little boy is not yet 3, i still have time)

diable

mk1Karl wrote: »

similar when i bought my current house, elderly owner had passed away, my dad knew his son and my offer was in before the old boy was buried, no estate agents.

Seems to be a pattern building up here..........

Richard_Webster

Quote:
Originally Posted by Richard Webster
The estate agents should have done some checks on his finances. They should have asked who he worked for and how much he earned - how much was commission, overtime etc. If he admitted that a substantial proportion was commission/overtime or that his job was a temporary one, then they should have told you that when they put his offer forward, and explained there was some risk he wouldn't get his mortgage.

I'm not saying they would necessarily have found out the flaw in his finances but the more obvious points should have been checked. Did they ask those questions?

Some people think that estate agents don't do anything but advertise property - but a good estate agent will do all he can to make sure that the buyer can proceed and that the sale goes through.

i realise you are a conveyancer and a lot closer to the process than I will ever be, but I have never given this kind of information to an Estate Agent, for six purchases and one aborted purchase (chain collapsed!) in both England and Scotland, and furthermore, if I was asked, I would tell them politely where to go...the mortgage offer would be with the solicitors, surely..and Estate Agents are not qualified financial advisors, even having this information doesn't mean they can use it effectively

Well, if a good estate agent encountered you then he would tell his seller client that the potential buyer said he could get the mortgage but refused to provide any proof and what did the seller want to do?

There are ways of avoiding telling the estate agent sensitive details about your finances but they would need to see a mortgage AIP from a lender or be able to speak to a reputable person who arranges mortgages to check that the buyer could proceed.

If you were a seller wouldn't you be cross if the buyer couldn't go ahead and a few simple questions would have established that at the start?