The system has to change!

virgo149

Some recompense has to be considered when you are so far down the line - it might be legal but it just simply isn't fair, moral or right to be able to just drop out of a purchase without a thought to the ones it affects. At least the sick feeling in the pit of my stomach might be eased if our costs were addressed even slightly.

My wonder is what to do now - do we cut our losses and pull out completely or have another go and risk another financial loss if it happens again. I've told our sellers to get their house back on the market today because of their position but we still want the house if we can. It's such an all consuming process I wonder how anyone manages to stay sane or solvent.

magyar

I don't see any reason why you couldn't have a system whereby both parties contract to complete the process according to a series of rules.

If you pull out because the survey or a search shows a problem, then the deal could end there and then. If someone pulls out for reasons unrelated to the deal then they should meet the costs of both parties. However you get a problem here too. If there's a big chain then who pays: should it be the person who makes the chain fall apart (who might end up with a very big bill indeed!) - I can see the new thred being "I pulled out of a sale because my wife died and now I owe £50,000" etc. etc......

Alternatively, you could have insurance which protected people from this - although that would just cost everyone more and make people more likely to drop out?

PS - don't forget that buyers get let down too - I once nearly completed on a house where the seller changed her mind - costing me over a grand.

magyar

virgo149 wrote:

Some recompense has to be considered when you are so far down the line - it might be legal but it just simply isn't fair, moral or right to be able to just drop out of a purchase without a thought to the ones it affects. At least the sick feeling in the pit of my stomach might be eased if our costs were addressed even slightly.

My wonder is what to do now - do we cut our losses and pull out completely or have another go and risk another financial loss if it happens again. I've told our sellers to get their house back on the market today because of their position but we still want the house if we can. It's such an all consuming process I wonder how anyone manages to stay sane or solvent.

I do sympathise. Out of interest, have you asked your lawyers, surveyors etc. if they will do any subsequent instructions free or at a reduced rate? They may well say no, but it's worth asking.

magyar

BobProperty wrote:

It won't. End-of.

It will go some way to address the problem*, in that it means that at least people can cheaply and easily assess the property they're buying. In addition it means people are serious when they put their property on the market: I have personally fallen foul of sellers who just decide not to move.

* Leaving aside issues such as "will the mortgage companies accept them" etc. - let's assume they all work as intended.

BobProperty

magyar wrote:

It will go some way to address the problem*, in that it means that at least people can cheaply and easily assess the property they're buying.

On the basis of what? An energy efficiency report? I think you are out of date with your HIP information.

magyar wrote:

In addition it means people are serious when they put their property on the market: I have personally fallen foul of sellers who just decide not to move.

They will have wasted the cost of a HIP. They may have wasted your time and the EAs time but it won't stop them pulling out and you will not be compensated for it. It's a minor plus for HIPs that it may put some speculative sellers off.

magyar wrote:

* Leaving aside issues such as "will the mortgage companies accept them" etc. - let's assume they all work as intended.

They never did.
And as for "all work as intended" the only thing intended was to comply with an EU directive on energy efficiency recording, the rest was ODPM propaganda.

magyar

I have to admit I didn't realise the Home Condition Report wasn't a mandatory part of the pack - merely "authorised".

Poppycat

Oh this must be awful for you. I dont have any advice but I really do feel sorry for you. People like that shouldnt just walk away like that without a care in the world and mess other people about.

housebuyer_abc

Many solicitors did offer an 'insurance' that would pay back the majority of their fees if the sale went south for any reason.

Of course hardly anyone takes it out as it is expensive, but they do complain afterwards if they are affected.

Sorry to hear your story, it has happened to us in the past and its a right pain in the ****

Rachman_2

Virgo,

imagine you had come back from holiday to find your job had gone down the river, would you want to be committed to pay out expenses for something outside your control too ?

It's the way it goes - the world has as many PITA buyers as it does sellers. that's why being chain free is a good thing.

Whatever the government try will only end up punishing one group unfairly in a lot of cases.... - same as any other deal, it can end up with people out of pocket....

magyar

Poppycat wrote:

Oh this must be awful for you. I dont have any advice but I really do feel sorry for you. People like that shouldnt just walk away like that without a care in the world and mess other people about.

To play the devil's advocate: they presumably have incurred costs too - and you really don't know why they pulled out; it might be for a valid reason.

All the same, it's horrible and I do sympathise.