Being messed around by buyer and estate agent

catmansam

We accepted an offer on our property sometime ago. the buyer had a mortgage offer 'in principle'. they subsequentially obtianed a full offer after the building society survey and the sale was proceeding fine. Once the solicitors had done their stuff (which was sorted last week) we agreed on last Thu to exchange the next day (Fri). Our solicitor phoned in the morning (Fri) to say that exchange would take place and were we happy to proceed, which we were. Late in the afternoon, we got a call from the solicitor to say exchange could not take place as the Bulding Society had requested another survey and would not release our buyers funds until this happened.

Speaking to our solicitor we were told that the buyers solicitor had missed the condition on the mortgage. Speaking to our estate agents, we were told that we had caused the problem because we had changed the agreed completion date (which we had not, the only completion date being sorted out on the Thu) and as a result of this the buyer had had to get another mortgage offer. Further questioning identified that no further offer had need to be obtained (i.e. the mortgage offer had not expired), although it is difficult to get a straight answer from anyone who actually knows what happened.

Although v. annoyed and confused, we do want to sell and accepted that the second survey was needed in order to proceed.

The survey was booked in for today and when the surveyor arrived, he was accompanied by the buyers father (who is an architect) and when questioned he said he was working on behalf of the buyers (not the Building Society) - some story about the Building Society had told the buyer that they needed to organise and pay for the survey.

It was very clear that the surveyor and buyers father knew each other very well and the surveyors inspection was being heavily influenced.

Surely, if the Building Society required a new survey to release the funds, they would want this to be independent and certainly not done by some one closely related to the buyer.

We are now very nervous about what is going on. At the end of the day we are not in a chain, so losing the sale would not be the end of the world and we have another buyer in the wings who are still in the market and lost out to our current buyers when making offers originally.

Are we right to smell a rat?

betmunch

I wouldnt worry about it until something comes back to you.

That said, from what you have writen I think there will be further developments, so please come back and post what happens so that we can advise you.

nomoneytoday

Wonder if he will try and lower the offer, hoping that you'll take it in a more desparate move?

MacMickster

Was the first survey just a valuation report for the lender?

It is quite possible that your buyer has received advice (albeit late in the day) to have a full survey done for his own benefit - which is always the prudent thing to do. Prepare yourself for further price negotiations following his report.

DVardysShadow

Personally, I would feel very uncomfortable about this. Buyer's father should visit your property under the buyer's ticket, not under the buyer's lender's ticket. To me, this is a fairly serious breach of protocol.

If anything happens as a result of this visit, I would be opening negotiations with the other potential buyer.

TheDink

MacMickster wrote: »

Was the first survey just a valuation report for the lender?

It is quite possible that your buyer has received advice (albeit late in the day) to have a full survey done for his own benefit - which is always the prudent thing to do. Prepare yourself for further price negotiations following his report.

This is exactly what has happened to us too. Valuation has been done for our buyer's bank (we don't know the outcome), now, weeks later, the buyer has decided to get a survey done as well. We're braced for price negotiations too, but given that we haven't found anywhere to buy yet, are in no rush.

Hope it works out for you OP. Not nice for you, but it is nice to hear that others are in the same boat as we are!

G_M

Sounds dodgy. Wait and see what happens. If things start moving again and Exchange gets arranged - fine.

If, as seems likely, you get a 'survey showed xyz problem we need to reduce our offer to £ABC', just say no firmly and put your property back on the market.

the buyer has forked out money on survey, mortgage application, legal fees so will be out of pocket if the deal collapses. He may come crawling back at the original offer if you clearly mean what you say.

hazyjo

Sounds like the mortgage offer just expired. Happens a lot as people don't take a blind bit of notice of when they expire. It's not up to their solicitor or anyone else to point this out to them and is often only spotted near to exchange (AFAIK). Ours was getting near expiry and we managed to extend it. Sounds like this is purely down to the fault of the vendors.

I would be very peed off if the father accompanied the surveyor and would definitely be telling the EAs I was selling through, and my solicitor. I would also consider speaking with the company the surveyor is employed with (if there is one) I'm sure they'd be frowning upon it. All presuming they try to drop the price...

Whatever happens, you don't have to drop. Of course, you risk losing your buyer. Up to you. Just wait to see what they come back with.

Did they have a survey done before (not just a valuation)? If not, I suppose you have to consider that they have every right to drop the price if there's major work needed. Most of us on here in that case would be saying you should drop.

Do you know of any work that might need doing?

Jx

Littlemissteapot

Sorry, I don't know if you need to worry but personally I would let your solicitor know of this additional development so that he is fully informed. This type of information might be relevant particularly if he needs to advise you on future matters and when he is discussing the sale with the buyers solicitors. Good luck and I'm sorry I couldn't help more.

catmansam

Thanks for all the responses.

To clarify, we have been told that the buyers mortgage offer has not expired but it is the building society that requested the new survey.

The first survey was a valuation only and the second one (that occured today) only took 15 mins and therefore could not have been anything more.

Have kept our solicitor fully in the loop.

In order to avoid these sort of negotiating ploys, we had our own structural survey done prior to putting the property on the market and this raised no issues, so we are in a strong position should they try to come back with a lower offer due to work required.

We'll wait and see what happens.