seller does not have mortgage yet for his second property

rfe

Dear Sirs,

I am wondering if someone can advise me on below issue.

I have been waiting for the sale of a house to go through but so far the progress has been very slow. My solicitor has been chasing sellers solicitor to send the draft contract to proceed. More than one month gone the sellers solicitor does not send draft contract.

I spoke directly with the seller and he told me that he is still looking for a mortgage for his second property. I am worried seller would not get a mortgage as more than one month gone.

On my part, I have already paid for and had the house evaluated and paid start up fees for the solicitor. In total, so far I have already invested about £600 towards the purchase of this property.

I have developed some concerns which I am hoping you can help to clear. My question is, If an agency has advertised the sale of a property and a buyer makes an offer which is accepted and he begins to invest in the property, If for some reason the seller is unable to sell the house because he is unable to purchase their second property and the sale is cancelled, who is responsible for the loss made by the buyer?


Thank you

Wyndham

We're not all male, so 'Sirs' is not an appropriate form of address

Until exchange of contract, both sides are responsible for their own costs. If you've paid out then it's your cost, and if the sale doesn't go through, you have lost money. That's just how it is, I'm afraid.

I'm assuming you are in England, and not Scotland? It does make a difference.

BobQ

Wyndham wrote: »

We're not all male, so 'Sirs' is not an appropriate form of address

QUOTE]

When you are addressing a company of unknown people "Dear Sirs" is indeed an acceptable means of address since you do not know whether it will be read by a man or a woman and you are addressing the collective. I am not sure I would use it on an internet forum, but the idea this is sexist is absurd. Its an accepted convention.

BobQ

rfe wrote: »

Dear Sirs,

I am wondering if someone can advise me on below issue.

I have been waiting for the sale of a house to go through but so far the progress has been very slow. My solicitor has been chasing sellers solicitor to send the draft contract to proceed. More than one month gone the sellers solicitor does not send draft contract.

I spoke directly with the seller and he told me that he is still looking for a mortgage for his second property. I am worried seller would not get a mortgage as more than one month gone.

On my part, I have already paid for and had the house evaluated and paid start up fees for the solicitor. In total, so far I have already invested about £600 towards the purchase of this property.

I have developed some concerns which I am hoping you can help to clear. My question is, If an agency has advertised the sale of a property and a buyer makes an offer which is accepted and he begins to invest in the property, If for some reason the seller is unable to sell the house because he is unable to purchase their second property and the sale is cancelled, who is responsible for the loss made by the buyer?


Thank you

Wyndham is correct. I would not worry about whatever the seller is up to. In England and Wales, the offer is never just "accepted", its "accepted subject to contract". Costs incurred on either side prior to signing the contract are at your own risk.

rfe

I apologise for the way I addressed everybody was not thinking at all.

In this case, does it mean there is no law protecting the buyer in England or Wales and that the agency has any responsibility on the matter?

marliepanda

Until you exchange contracts either side can pull out with no consequences or financial responsibility to the other.

rfe

In this case there is no other alternative, do we always have to make the evaluation first to get the mortgage and than exchange contracts?

marliepanda

rfe wrote: »

In this case there is no other alternative, do we always have to make the evaluation first to get the mortgage and than exchange contracts?

I may be misunderstanding, but you get the survey (evaluation?) done before you exchange, as otherwise you could exchange on a property which you can't get a mortgage for or has problems you were unaware of and are unhappy with.

I don't know if you CAN exchange before a survey but it would be unwise to do that, as if your mortgage pulls out you will still be legally obligated to buy the property and could therefore get into a lot of trouble...

rfe

marliepanda wrote: »

I may be misunderstanding, but you get the survey (evaluation?) ...

Yes.

For my next attempt to purchase a property I believe I have to be more cautious as I was not expecting this problem. Is there any insurance to cover such losses?

Thanks!

robatwork

Never seen a forum thread start with Dear Sirs.

More power to your elbow - but should have ended with yours faithfully for the full effect.

Wyndham

When you are addressing a company of unknown people "Dear Sirs" is indeed an acceptable means of address since you do not know whether it will be read by a man or a woman and you are addressing the collective. I am not sure I would use it on an internet forum, but the idea this is sexist is absurd. Its an accepted convention.

It is a convention, but at one point slavery was a convention. At one point not giving women the vote becuase their pretty little heads wouldn't be able to cope with it was the convention. At best it's old fashioned but polite, but it's really not something I've seen anywhere for quite some time - thankfully!