verbal offers.. obligation?

Polly05

Hi,
Quick question. If i put in a verbal offer on a house and get it accepted then the mortgage application falls through, am i under any obligation to somehow still pay for the house? if its still just a verbal offer? with nothing signed?
im just a bit panicy now that if i get an offer accepted then get turned down for the mortgage that i'll be expected to pay for the house with no mortgage (ie no chance!)
Buying in Scotland, if that makes a difference,
Thank you!

ruggedtoast

No clue about Scotland but in England and Wales a verbal agreement for a contract can be binding, particularly if goods are supplied and acceptance of the terms incur losses for the supplier (what would happen if you ordered food and wine in a restaurant then said for no reason you didnt want it when it came out?).

If you're that worried about it just make sure you say "subject to mortgage approval" or something like you would do in writing.

maginot

No, for house purchases it is only an offer that you can withdraw at any time until you exchange e.g. Sign contracts.
You have not made a verbal contract, just a potential offer.

DVardysShadow

ruggedtoast wrote: »

No clue about Scotland but in England and Wales a verbal agreement for a contract can be binding, particularly if goods are supplied and acceptance of the terms incur losses for the supplier (what would happen if you ordered food and wine in a restaurant then said for no reason you didnt want it when it came out?).

If you're that worried about it just make sure you say "subject to mortgage approval" or something like you would do in writing.

Not for property. But do say 'subject to contract'

motherofstudents

Might help if you read up on buying and selling houses. It's not rocket science but it will help you to know what is involved and smooth the process. There are several books available, including one by Kirstie and Phil and of course there's always the internet !

googler

A verbal offer in Scotland isn't an offer. You make offers in writing via your solicitor, in a standard legal form.

"Every offer for the purchase of property, to be valid, must be in writing and should observe the formalities of Scottish law. .....

Offers should never be made in writing without obtaining professional advice. It is for this reason that solicitors normally submit offers – in a missive format – on behalf of buyers. However, there is nothing to prevent the seller and the proposed buyer negotiating and discussing the terms of the proposed transaction more informally through the estate agent; the buyer cannot be held to a verbal offer, but nor is the seller bound by a verbal acceptance."

greenface

why not get a figure approval first saves wasting your and the sellers time. I have been a seller and accepted a mortgage befor ethe people struggled for ages trying to then get a mortgage. Time wasting along the way.