Selling - would you agree to cost guarantee?

hshen

Hi,

I have been asked by a prospect buyer to agree to a 'cost guarantee'.
Which I've been told is if any of the party withdraw they will need to cover reasonable cost of the other party.

I don't have a problem with it in principle as I'm a fairly committed seller. But it does cover buyers more than myself as they are incurring most of the cost.

Would you agree to such arrangement?

TrickyDicky101

In principal I don't think it sounds too bad (I would agree up front exactly what your reasonable costs would be as a seller though eg agree an amount of £XXX that Buyer would pay if you pulled out). How enforceable such an agreement is I have no idea, however.

hazyjo

Nope. Too many reasons for pulling out (by either side). Couldn't possibly include every variable in an agreement. All you can do is get on with everything asap and show you're a committed seller.

Sounds like they've had their fingers burnt...

Maybe you could invite them round for a cuppa and say you're absolutely committed and want it to go through asap.

Have you got somewhere to go? Is there a chain other than you two? What if it collapses further up the line and you lose the house you're going for...

Jx

hshen

We are both chain free.

I have asked for an agreed compensation if they pull out, and that sale price doesn't change. Only then will I commit.

zappahey

Have they surveyed yet?

What happens if the value comes back low and they don't want (or can't) pay full price? Will this be captured in the agreement? What other reasons will be acceptable?

Have you taken your solicitor's advice? Do they agree it's feasible? What will it cost to draw up a contract? Less than the costs of pulling out?

I could see this becoming quite expensive to organise, by the time the contract is drawn up for this "agreement".

G_M

Pull out for ANY reason? What if their survey shows the house is subsiding? They pull out (quite reasonably) and have to pay your legal fees.........

It's not normal practice, it benefits the buyer more than you - don't get involved. Just sell your house in the normal way.

keystone

No.

Cheers

.