Please help - house purchasing nightmare.

Sonia246

Hello everyone,

Sorry, I'm new here, but I was wondering if anyone could offer me some sage advice on a predicament that I've found myself in?

I placed an offer on a repossession property a few weeks ago, which was accepted. The details were published etc (no responses from anyone else), and I went ahead and got solicitors to draw up all the necessary contracts etc.

This took longer than expected - with hindsight, I should have chased them much more, but I guess you live and learn.

Last week, I finally hear that everything is good to go for exchange (hurrah); within an hour, the estate agent has called to let me know that another 'significantly higher' offer has been placed on the property.

So, at this point I can't decide what to do. I love the property, and it's still a good price, so I place a slightly higher offer. At this point, the estate agent accidentally lets slip what the other offer is.

Mine had been **5, 500. The other buyer had rounded up to the next ten. However, I am a cash buyer with no chain (and I'm not purchasing in London/anywhere particularly pricey). Anyway, we (hangs head) get into a bidding war until I have matched her offer (at each point, even though I'm offering cash, the corporate client declines my offer)

This is all within the space of two days. The offer that she and I have placed has now been published (a legal requirement for reposessions). I then get a call this morning to say that my offer has been rejected. The paperwork from the solicitors in my name is ready, the same amount of money is there and I could exchange within a week, but still they have decided to go with her (even though presumably it'll take her a good few weeks to get everything in order).

In the end, I expressed my disbelief (the estate agents obviously did the whole 'well if we could we would give it to you...we can't understand why they would choose her' thing) and said that the money was on the table for 7 days, at which point I would look elsewhere.

This is the first time I've bought property, and the friends and family I've asked have all told me to put a higher offer in, but I'm not sure as, even though it might be worth it, what's to stop it from escalating further?

What is going on? What can I do?

Please help! :eek: Any advice very gratefully received!

Doozergirl

Is this just being relayed through the EA?

I'd ask your solicitor to clarify with their solicitor. And ask them to take no prisoners.

It is very odd that you have cash, are ready to exchange and the offer is the same. Very odd. And I'm usually the one sticking up for the EAs

Sonia246

Yes, it is all being relayed through the EA. The problem is that, as it's a reposession, they go to a 'corporate client' who apparently makes all the decisions. I've asked my solicitor (who was recommended by the EA - argh) for help, and they just told me to speak to the EA, and refuse to speak to the corporate client directly.

Glad I'm not the only one who thinks it's all a little odd....

Doozergirl

Sonia246 wrote: »

they just told me to speak to the EA, and refuse to speak to the corporate client directly.

Pardon? What part have they played in this? Have they been told by the corporate client's solicitor that it's all off as well? Or are they taking your word for it?

I'd want proper clarification from the mortgagee that they are dropping you and that they don't think it's the other way around. They should ask for the contract back and your solicitor will have to give it to them. If it were my solicitor, I'd be asking them to send it back with the clear instruction that we are ready to exchange right now, what are they playing at?

Is it a proper solicitor? Get out your complaints procedure (should be with the terms and conditions which they are obliged to give you) and speak to the partner responsible for complaints. There is no reason why they cannot at least try to fight your corner and grab something from the jaws of defeat.

Sonia246

They are a proper (and by all accounts reputable) solicitors, but so far they have just put the paperwork together but haven't got at all involved in the 'bidding' process. In fact, I have only once been able (briefly) to speak to my solicitor - I always get palmed off to her assistant.

What really irks me is that I have now found out that the same solicitor have put all this paperwork together for another (previous) client, who pulled out, and obviously charged for it, and yet stalled me for nearly 4 weeks 'getting everything in order', even though they were essentially getting paid twice for the same job. Plus I'll lose a rather fat deposit, and no doubt this new bidder will be referred to the same solicitor.

Because of the last point, surely it's in the solicitor's best interest for my sale not to go through...so why would they help me out?

Am digging out complaints procedure nonetheless...

P.S. Thank you

Sonia246

Have sent a complaint to the solicitors, but who knows whether it'll even be acknowledged. Are there any independent legal bodies I could/should consult with regards to all of this?

In terms of how best to proceed with the 'bidding' process, I'm assuming I should just hold tight?

Rargh! It's all so horribly gutting!

Egg_custard_2

Sonia246 wrote: »

What really irks me is that I have now found out that the same solicitor have put all this paperwork together for another (previous) client, who pulled out, and obviously charged for it, and yet stalled me for nearly 4 weeks 'getting everything in order', even though they were essentially getting paid twice for the same job. Plus I'll lose a rather fat deposit, and no doubt this new bidder will be referred to the same solicitor.

Because of the last point, surely it's in the solicitor's best interest for my sale not to go through...so why would they help me out?

Am digging out complaints procedure nonetheless...

P.S. Thank you

Is the solicitor the same company as the EA? If so, the cynic in me says it sounds like your EA has probably recommended the other person's offer to the vendor, just so they get another set of fees for their solicitor...

CAN1976

if your offer was accepted, and you paid a deposit, how can they go back on that now?

Sonia246

They are different companies, but the EA considers them 'their' solicitor - ie all buyers are referred to them (unless they request otherwise)

Yes, it definitely crossed my mind too....surely that would be most corrupt though?! (and probably illegal?)

Plus, I can't think how I would prove that the EA had actually recommended the other vendor over me, even if the circumstances do all sound extremely dodgy.

Sonia246

The deposit was for the solicitor. I might be wrong, but I think that until contracts are exchanged, an acceptance isn't legally binding? Unless you're in Scotland...

God, I wish it were, though.

Fingers are crossed, at any rate.

princeofpounds

weird.

someone else encountered a strange repo transaction a while back. Can't remember if it was on here or housepricecrash.

They went to the land registry website to get details and contacted the owning bank direct. Took them a while to find the right person, and they got little immediate response from them, but a kick went down the chain and the deal went through as people's attitudes miraculously changed.

This bank was also using an intermediary selling company. I am sure there is rampant corruption between these sorts of places and the EAs when it comes to repos.

In this case it's all a bit odd. A selling company would not be likely to take a less proceedable offer over a cash offer at the same price normally, because if it falls through the bank could sue them. If it is to push more business through the lawyer then seems a remarkably small gain for the risk.

Anyway, another avenue for you perhaps to contact the owner directly?