Seller pulled out leaving us with costs - not once but TWICE now.

GenD

Hi, I'm hoping someone might have some constructive advice to offer, as we don't know what to do.

We had our flat on the market for over 2 years and finally got an acceptable offer last October - yippee! Desperate not to lose the buyer we rushed around househunting and had an offer accepted on a house 3 weeks later. We got the mortgage offer in place and paid for the survey (£460 homebuyer's report) which was done in early December. Christmas seemed to get in the way and delay all the legal proceedings, but our solicitor assured us everything was going as it should, and just taking longer than usual because the sellers were a divorcing couple using separate solicitors, but she estimated that we should be ready to exchange by early February. The lady living in the house, who was the one dealing with the selling agent because the husband had already moved out, had previously said that she would be moving into rented accommodation in January (the house was marketed as 'no chain' for this reason), but then said that had fallen through due to the other delays, and suggested a completion date of 18th March. Our buyer meanwhile was being very patient even though he had wanted to move in quickly. We agreed to the date, and started making arrangements, although nothing undoable until we had were ready to exchange contracts. But as the date got closer our solicitor said that the ex/husband was still not ready to sign the contract, and then the estate agent said that the couple were having legal problems agreeing on how to split the proceeds as part of their divorce settlement (even though the house had been on the market for nearly a year before we offered!). A week to go, and the agent and solicitor were both worried because the seller wasn't answering the phone or returning calls... In desperation we went round to the house, and asked the seller if there was a problem with the move, and she was very vague and evasive, but the following day phoned the agent and said they had to take it off the market as they were going to court to resolve the financial issues.

With 5 days' notice we now had no house to buy, and our buyer understandably said at this point that if we didn't move he would pull out and find another property. So we made the decision to go ahead with the sale, and moved into emergency rented accommodation, with all our furniture in storage.

We knew we had already lost the costs of the survey and the search fees, which was gutting enough, but we were more worried about our mortgage deal - we were on a fantastic tracking rate of 0.75% above the B of E base rate, which we could port to a new property for the outstanding amount, and just take out the additional borrowing at a higher rate. The bank allowed us 3 months to complete on another property and we could still port that rate, and also get a refund of the £300 early redemption fee.

So once again we raced about househunting, found another property, explained our circumstances and our 3 month deadline to both the seller and the agent, and had an offer accepted. The seller was once again a divorcing lady, but she assured us that everything was already agreed and she was ready to move into a rented place in a matter of weeks. So we paid AGAIN for the survey and the search fees, and waited... and a month later our solicitor got worried because no contract was forthcoming, and she pestered the other solicitor and the agents, and then we got a call from the agent that the husband (once again already moved out) had decided not to sell, even though the wife (who we'd seen on both viewings) was desperate to sell. So the property is off the market - and we've not only lost all the costs again, but now have a month left of our mortgage offer and basically no chance of getting another property completed in time, so we've permanently lost that too.

I keep searching but I can't find anything that suggests we can do anything to recoup any of the lost costs, so I assume that's a hopeless case - but is there anything at all we can do to prevent it happening again and again? Surely there should be some protection in law for genuine buyers who just get screwed over by sellers who change their mind? We've done nothing wrong but now we're stuck, paying rent as well as storage fees, and having to look for cheaper properties now we've lost our great mortgage rate.

I've got a horrible feeling the answer will just be 'no' on all fronts, but it seems there's no harm in asking, and I feel very slightly better for at least getting the whole story out!

Thank you for putting up with my lengthy whine

Excited13

I feel so sorry for you it sounds terrible but unfortunately you need to grin and bear it in relation to costs as exchange never took place and both parties can withdraw right up until exchange.

Divorce and house sales are a nightmare and stories like this put people off buying off divorcing couples. The most sensible thing would have been for the sale to have gone through and the money kept in a solicitors holding account until the financial settlement was agreed.

I hope you do find something soon and don't encounter any further problems. Good luck

GenD

Thanks for the kind thoughts

It just seems so unfair - agents are required to check into potential buyers to make sure they're genuinely in a position to buy, but there is no requirement for a seller to prove they have any genuine intentions, even though they have NO upfront costs and so nothing to lose by pulling out, unlike the buyer, who has to make a big financial commitment with no guarantee of anything.

I just wondered if there were any kinds of agreements we could ask sellers to sign in future so they would have some kind of penalty for pulling out without a good reason?

mysk_girl

So sorry for you, it's horrible. It does happen the other way round as well, we as buyers pulled out of 2 purchases in quick succession and lost around £2500 in fees. And ended up living with my inlaws (my son ended up being born while we were still with them, not ideal!). Estate agents may check buyers but the don't check that the sellers aren't lying through their teeth about boundary disputes and negative equity (the reasons why we pulled out). It's just a horribly tough process for all concerned. I'm sure you will find something better in the long run, we did and its definitely all worked out for the best, these things often do. Remember, it'll always be all right in the end - and if it isn't all right, it isn't the end yet...

moneyistooshorttomention

I don't think that would be very realistic personally - ie imposing a penalty.

What might be a thought though is for divorcing couples to have to sign a document saying that they are "of one mind" on selling the house - ie that they both agree it will be sold and as to what will happen to the proceeds of the sale.

It does seem to be warring couples that seem to create a lot of the problems I have read about for prospective buyers - with changes of mind and never having meant it in the first place (though my own personal experience of a let down merchant seller was a single man that just kept selling and reselling and reselling "my" house to higher and higher bidders and I cant see what could be done about someone like him).

(NB A solicitors holding account sounds a very good idea for divorcing couples who cant agree on division of proceeds. The house sale goes ahead okay and they sort that all out later - and without other people suffering in the process).

maninthestreet

Best to avoid any properties for sale by divorcing couples from now on, as both your previous potential purchases fell through for reasons related to on-going divorce.

moneyistooshorttomention

maninthestreet wrote: »

Best to avoid any properties for sale by divorcing couples from now on, as both your previous potential purchases fell through for reasons related to on-going divorce.

I can't really see that that is possible. If divorcing couples (or at least one of them anyway) fear they will be blacklisted as sellers then they will just lie and give some other "reason" as to why they are selling.

olly300

moneyistooshorttomention wrote: »

I can't really see that that is possible. If divorcing couples (or at least one of them anyway) fear they will be blacklisted as sellers then they will just lie and give some other "reason" as to why they are selling.

The OP has had two expensive problems with divorcing couples so in their case they should avoid houses being sold by them.

POPPYOSCAR

GenD wrote: »

Thanks for the kind thoughts

It just seems so unfair - agents are required to check into potential buyers to make sure they're genuinely in a position to buy, but there is no requirement for a seller to prove they have any genuine intentions, even though they have NO upfront costs and so nothing to lose by pulling out, unlike the buyer, who has to make a big financial commitment with no guarantee of anything.

I just wondered if there were any kinds of agreements we could ask sellers to sign in future so they would have some kind of penalty for pulling out without a good reason?

I very much doubt that anyone would sign such a thing and even if they did, you would have difficulty enforcing it.

We once paid a 'non-refundable' deposit which was supposed to guarantee the property was ours and taken off the market,but it turned out to not be worth the paper it was written on when someone else came along and offered more money.

mrsmchapman

Firstly I am extremely sorry for what has happened to you. I personally think the whole buying and selling of houses needs to be looked at but that is another thread.

For over a week I have thought of writing, close on the exact same post you have written, but I thought I might get the backlash of 'you exchanged and took the risk' or quite simply I know there isn't anything that can be done until exchange, I asked our solicitor in January.

I'll give you a brief to us, very similar to you.

Middle of Jan - House on Market
End of jan - accepted offer
end of jan - offer accepted on new house
Mid march - surveys completed on both houses
since this date everyone pushing to exchange.
mid april - the owners of house im buying find new place put in offer, accepted, should be quick as they were cash.
end of april - my buyer becoming impatient, he knew all the ins and outs of my purchase, so was never left in the dark. from this day I pushed my end and so did he, and he threatened to walk. For us the sale was more important and so exchanged and we move beginning of next month.
new house- last week decided she might not move.
following day - find and secure rental
Roll to Monday this week an email stating she is still undecided and will let us know more after the 20th, no good to us for her to not go through with it anyway.
Yesterday - put in offer on another house, rejected and will try again today.

I just cant believe how similar we are. We also have 3 months with current mortgage provider, however our redemption is over £4k, so potentially losing this and the survey and solicitor costs have left me very bitter and angry.

I'm sorry I have no advice to give, as I say I asked my solicitor if I could safeguard ourselves and the answer was no, as 2 years previous a cash buyer pulled a day before exchange, stating they had no money, we were left again back then with costs.

warwicktiger

Whatever happened to the idea of putting down non-refundable deposits to stop buyers pulling out?