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

mrsmchapman

warwicktiger wrote: »

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

I was told by solicitor this isn't what happens, and its not something he see's many people willing to do!

I so wished that after survey/searches and that being accepted, and non-refunable deposit should be placed!

ognum

So sorry to hear what has happened to you but that is the way the housing market goes in the UK and it does appear to be worse at the moment.

My only advice is

Use a no purchase no fee solicitor, you will still have to pay for searches and survey etc but at least it limits the costs.

View empty houses, these are the desperate people who really need to get the cash in so will push the sale.

Be prepared for this to happen, have the funds for it to happen and the emotional strength to deal with it.

Discover the best communication method door the EA, your solicitor and your mortgage company and keep those lines of communication open. They may not be you best method but if they prefer email then email. Keep in constant contact, use the EA and make them work, be in contact with the solicitor weekly and ask what he has done.

It is tough out there!

Jennifer_Jane

Other countries don't have these problems. In South Africa (and Sweden, etc), house buying and selling is usually easy and stress-free without gazumping or gazundering. (I have encountered a problem, but it was with the estate agent's dying!).

I think the reason for this is that if you want to buy a house you and the seller sign a contract with the agent, and that will be "Signed subject to bond (ie mortgage) approval, searches or whatever". A deposit is paid then (IIRC), and you lose it - so effectively your deal is going through at that time.

My last house was put on the market for an "Open House" on the Easter Sunday, with an offer on that day - it went on the following Sunday for another Open House (this is mostly how houses are put on the market). I then had two offers on the table, chose the one I preferred, and everything went through within 6 weeks.

I agree that houses are simpler in South Africa and that surveys wouldn't usually - usually - be done, but that doesn't apply to Sweden I imagine.

Just wish we could bring in this system, which is fair to both buyer and seller protecting both parties. You can view the house as often as you (and the seller) want, but once that first contract is signed, money will be paid to someone. If it's the seller pulling out, then the Agent will be wanting their commission as having fulfilled their brief of "introducing a valid buyer to the seller".

Easy-peasy!

An additional point about making this an easy thing to do is that you can move into the house at your and the seller's convenience and before final completion. The Estate Agent will ask when you both want to do the move and will arrange for "Occupational Rent" to be paid by buyer to seller. I realise that Squatter's rights in Britain, might currently make this unacceptable to Britons, but again, it makes everything so easy. You are not all waiting for monies to be moved around the Country all on one day, with removers hanging about on the last day of the month, etc. Just go when it suits.

I'm sure if the Government suggested this (deposit paid on first contract), everyone would like it. Estate Agents and Solicitors would have confirmed sales spread through the year/month and have happier clients. When I've spoken to estate agents about this, they say solicitors aren't interested. I'm sure it's because they don't know about the advantages to them (and their clients).

PS - I really feel for the OP, it happened to me. My house sale fell through twice with the same people; my dream house then unavailable; so two surveys and some legal fees, and I'm still in my same house. Feel so much for you.

Okydoky25

I think the Seller should pay for an independant Homebuyers report. If they are serious about selling this would be an incentive not to then pull out and would go someway to save costs for the buyer and speed up the sale.

I pulled out of two house purchases last year after the reports came back with problems. This cost us thousands in fees etc and we've ended up with nothing to show for it . And I genuinely feel sorry for the next buyer who then comes along and gets stung again!

eddddy

GenD wrote: »

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?

Hi GenD

In theory, you could ask your solicitor to draw up a ‘pre-contract deposit agreement’. This means that each side pays a deposit that they will lose if they pull out without a good reason.

The problem is that a lot of time (and legal costs) could be wasted in agreeing what 'good reasons' should be defined in the contract.

Then, if one side does pull out, you may still have arguments about whether their reason is a 'good reason', as defined in the contract.

I guess that if you are aware of specific risks, you could ask your solicitor about a specific 'pre-contact deposit agreement'. e.g. "Should the seller withdraw as a result of a dispute related to a divorce settlement...". But this is likely to be even more expensive, and still open to dispute.

topbargainhunter

I feel very sorry for you too. We had buyers pull out of the sale of our flat after 3 months for no apparent reason. The problem with English law is that nothing is remotely guaranteed until exchange and that's why it's so stressful and costly to buy or sell.

When we recently accepted another offer on our flat we asked if we could have something drawn up by the solicitor to say that if the buyer pulled out they would compensate us for any costs we incurred but the solicitor said it was pointless as it would not stand up in court.

I think the Scottish system is much better than ours.

bretts

I personally feel as I am going through the whole process myself, is very unfair for the buyer as he is the one who bears all the costs and the seller can just turn up and say no anytime he/she wants.

I think both the buyers and sellers should be protected by law.
I am not sure about seeing empty houses as I am stuck on one personally, was advertised as chain free and owners moved to new property, but just before exchanging I have discovered it is a probate property and the vendor is not telling when he applied for it or what is the progress on it, and me after paying all the costs like many other buyers too, are helpless and have no option but to either wait or withdraw and start the whole process again.

EA checks everything like mortgage AIP some even go to the extent on asking for your bank statements to see if you really do have money but coz they work for seller they can easily lie about the seller to whatever extent.

I dont see this whole process as fair.

HAMISH_MCTAVISH

ognum wrote: »

that is the way the housing market goes in the UK !

Not in Scotland.

I really have no idea why you English put up with such a dire system for buying and selling houses.

lessonlearned

GenD

So sorry to hear your story. Once would have been bad enough but twice:eek:

I think the advice to avoid warring couples is very sound.....

Re - your mortgage - have you had a word with your lender, would they grant an extension. I know lenders are playing hardball at the moment but you never know.

Your story and that of others on this board is the main reason why I have gone into rented accommodation in between selling my house and buying another.

I have worked in the property business for most of my adult life and I just know that for me it's the best way forward. Over the years I had the scales removed from my eyes. I no longer trust either sellers or buyers.

Yes having to go into rented accommodation means two moves and all the hassle and expense it involves but it far beats the alternative - chains that collapse, lost fees and expenses, unreliable and dishonest people.

It is time for a shake up of the English system.

Until that happens I will just play it safe.

I am studiously avoiding all divorcing couples, long chains, tenants in situ, and anything else which I consider might cause complications.

I suggest a no sale, no fee solicitor. Don't instruct searches until you are happy with the survey results and do not rely on the EA to progress the sale. Pick up the phone yourself - at least once a week.

I suggest you play it very safe next time. I do hope you have better luck on your next attempt.

Ivana_Tinkle

You poor thing. You've been incredibly unlucky.

I agree that a divorce should be a massive red flag, but that doesn't help very much if you love the house.

This won't be any consolation at all, but we had a similar thing with a buyer who was going through an acrimonious divorce and turned out to need money from the sale of the marital home to buy our place, leading to massive delays and stress.

I never cease to be amazed at quite how selfish some people are, and how much they're prepared to mess up other people's lives. We really need to change our system. Why should you have to waste hundreds of pounds because people can't get it together to act like grown-ups?