Legal sale or not

gazfocus

renovation_man wrote: »

Who mentioned the word sue? IMHO the FA should have advised them not to start searches, valuations etc until they were positive they could complete.

He advised them to use solicitors 250 miles away who's charges are 3 times higher than the local solicitors.

He introduced them to mortgage arrangers who are charging them nearly £2000 to arrange a mortgage to raise money on their existing home to get a deposit.

And no doubt he is getting a nice little earner out of as well.

Yes but no-one forced your son and his girlfriend to use a solicitor 250 miles away. I got a few quotes for solicitors and decided I would prefer a local one for the convenience of being able to drop stuff off at their office, etc. It's also not really the financial advisors job to advise your son to not start searches, etc but a valuation is needed in order for the mortgage lender to make a decision as to whether they will lend or not.

I really feel for your son but as has been said before, the best advice you could give you son is to get the hell out of this purchase as it's going to be an absolute nightmare.

JQ.

renovation_man wrote: »

Who mentioned the word sue?

You did

renovation_man wrote: »

maybe legal advice and try to claim from the adviser???

How else do you propose to "claim"?

As I said above IFA's advise on mortgages, that is there area of expertise. They can make all the recommendations they like about anything else but it's up to their clients whether they take those recommendations based on the facts presented to them. If your son didn't want to pay £2,000 to arrange a mortgage he shouldn't have accepted the recommendation and certainly not signed the contract. 30 secs on an internet search engine will get some pretty good mortgage rates for £0 fee and 30 secs on the same search engine will no doubt get lots of local recommended solicitors close to your son.

You've still not said whether you son has actually exchanged contracts? If not I would run away from this deal as quickly as possible.

renovation_man

His partner seen the FA and just done what he recommended, they have their hearts set on this property and really want to complete but it is looking unlikely now.

Just been reading up on an IFA duty of care, makes interesting reading a conveyancer also has a duty of care. They really can't afford to walk simply walk away from a couple of grand so they must at least try and get some of their money back.

rpc

renovation_man wrote: »

His partner seen the FA and just done what he recommended, they have their hearts set on this property and really want to complete but it is looking unlikely now.

They need to stop following the hearts and start using their heads. They need to be objective - cold and heartless - if they want to find a way through this. They also clearly need to understand what stage they are at in the purchase and who committeed what to whom (e.g. were contracts exchanged).

The 'easy' route of doing what the EA of tied adviser suggests will usually end up making you poor and them rich.

If all they stand to lose is a couple of grand, that could be a price worth paying for a lesson in life! They should claim back anything that they are entitled to (e.g. deposits - not suing for negligence!) buy any money that was spent, was spent. That's part of buying a property!

renovation_man

Well some good news at last. I finally stuck my nose in and took it all apart and started again.
I discussed matters with their solicitors and bombed them out and used the company that I use for my properties, discussed it with the liquidators, mortgagees etc and they finally exchanged contracts last week.

They are really happy, but now there are some people who have some questions to answer.

As far as I know that if a duty of care exists and that duty of care is breached and somebody suffers loss because of that breach there is a liability.