Taking a seller to small claims court for pulling out before exchange

SonnyLito

Looking for advice/any experience of someone taking a house seller to small claims court in order to try and re-coup some of the cost, nearly £2,000.
We have had the seller pull out after chasing and demanding that we hurry up and exchange as it was taking so long (4wks!) and at the last moment pull out, not for a better offer, but to re-mortgage himself and split the property into flats....a project that he looked into 2 yrs ago and pulled out because of lack of funds.
My financial advisor has suggested we go through the small claims court, I have heard of this being done but not known of anyone that's actually done it.

AndrewSmith

I have never heard of a sucessful claim as it is the risk you take when purchasing under English law.

prudryden

You probably won't win unless you could somehow prove that it was done with intent and malice to cause you damage.

Having said that, it might encourage an out of court settlement, but wouldn't hold my breath.

pooranddesperate

I can not see that you have any claim against him - you do not have a contract with the seller unless and until you exchange. Either of you were perfectly entitled to pull out before exchange (which is why properties are said to be 'sold subject to contract' - you haven't got that 'contract' bit until you exchange).

I know you must be pretty upset and frustrated, but think you are just going to have to put it down to experience - i really wouldn't waste any more money on the court fees..

wnb

Sorry to hear about been gazumped but i have never heard anyone of been taken to the small claims. I think you going to have to try and move on and forget about it. The other option is to send him some fresh dog poo in the mail;)

matto

I don't think 4 weeks is a particularly long time in the house buying/selling terms. You may not have done yourself any favours by being chasing and demanding.

xela_17

I think it was the other guy who was being demanding, hence the OP's frustration.

matto

xela_17 wrote: »

I think it was the other guy who was being demanding, hence the OP's frustration.

Ooops yes. Sorry OP.

nej

If I go into a shop and say "yes, I'll buy that. I'll come back later to pick it up and pay for it" and then don't come back, you can't take me to small claims because no contract existed.

Same here.

lush_walrus

I would say that I would be 99.9% sure that it will be a wasted effort to try to sue. The whole point of exchange is that that is the point at which you are legally binded to sell and buy. Anything before that unfortunately is personal risk. Out of interest, how have you come into a position where it has lost you £2000? Presumably, you have paid for local searches, mortgage arrangement fees etc. But, I can't get my mind to that figure at the stage you are at.

brock-cruse

Hi. I know exactly how you feel....7 months into the selling and buying process (yes it was taking ages) and a week before exchange our vendor took the house off the market to sell to her daughter and the ftb at the bottom of the chain didnt have enough deposit money to go through with it! (why nobody knew i will never know). So, our buyers got another ftb and we found a repo house to buy...fantastic! 2 weeks later our buyers pull out (the property is no longer suitable for them but they still carry on with their sale!!!)...so to say we were a little annoyed and upset was an understatment! Wasted a whole year and had to go back on market.
Told agent to get going with the hard sell...3 weeks later and lots of viewings later sold to a let-to buy woman (for 5k more!) and re-bought repo house for 5k less...so so long as this goes through then will be a happy bunny. Plus repo house has a great deal more potential than original first house bought and its in the same village location (just round the corner from original house but is 5 bed detached as opposed to 3 bed semi). At the time i didnt believe posters when they said something better would come along etc etc but fingers crossed that for you it will all work out in the end....my kids and i now have a new game of booing where our ex-buyers live and booing when we pass our ex-vendors.....a small way to get out the frustration but hey will probably bump into ex-vendors and their daughter in the village if we finally get there!!!??
I still dont know what that lot cost..survey fees of about £400, electrician report £60, mortgage deal lost, searches about £250 plus dread to think what solicitors bill will be on 2 purchases! Also not sure if he charges us for 2 sales?????Or perhaps just a bit more for changing the contract on the sale??? Mind you should be covered by the 10k we made in that time!
I just hear so many times of people starting the purchasing process and then pulling out. My friends house has fallen through twice (fortunately before searches) but one reason why was because furniture wouldnt fit??!!!! She, like us decided that next time she sells she is not going to take off market but will do no viewings. That way you get details of anyone who has expressed an interest just in case things fall through again..its heartbreaking sometimes.
I think i may start another thread on this ...could get some interesting stories!!