Seller failing to complete on sale of flat - Help!

bitsandpieces

Guest101 wrote: »

the op would claim losses from the agrred price

Would make it easier if that's possible! Not sure how things work in this situation, though. What happens if agreed price minus costs incurred isn't enough to pay off the charges on the property?

BitterAndTwisted

That would be the vendor's problem!

mrs_mi5tery

mi5tery wrote: »

"The proprietor of the Charge dated 2 January 2012 referred to above is under an obligation to make further advances. These advances will have priority to the extent afforded by section 49(3) Land Registration Act 2002."

Anybody speak legalese? I'm google-ing for a layman's explanation for this entry above but no luck.

jonnyd281

I suppose if this went on long enough with the interest you could end up with a free flat - if you were patient enough.

Guest101

bitsandpieces wrote: »

Would make it easier if that's possible! Not sure how things work in this situation, though. What happens if agreed price minus costs incurred isn't enough to pay off the charges on the property?

The vendor would have sold with negative equity, and would be pursued by their lender for the difference.

The contract is signed and exchanged, there isnt anything the vendor can do.

xylophone

From what I can see all the penalties are for the buyer not the seller!

Puzzled by this - link says" A. If you decide you do not want to move after exchange of contracts you can be sued for breach of contract by other parties in the chain. Any deposit you may have paid on exchange of contracts will be forfeited by the seller if you fail to complete a purchase after contracts have been exchanged."

Also "The contracts you have signed will contain a clause which states that a certain rate of interest (usually 4% above the base rate) is payable on the purchase price for every day that completion is delayed and the liability for the delay will be passed down the chain but will rest with the party who is at fault. You should also be able to make a claim against the defaulting party for any costs incurred with removal firms or for overnight accommodation should this be necessary."

[Deleted User]

I can't help, but just wanted to say good luck and I hope it gets sorted on Tuesday. Can't imagine how stressful this must be for you.

ValHaller

mrs_mi5tery wrote: »

"The proprietor of the Charge dated 2 January 2012 referred to above is under an obligation to make further advances. These advances will have priority to the extent afforded by section 49(3) Land Registration Act 2002." (Any idea what this means?)

Anybody speak legalese? I'm google-ing for a layman's explanation for this entry above but no luck.

There is a first mortgage on the property against which further advances can be made. Anyone making a loan secured on the property must accept that all advances against the first mortgage have priority over secured loans even if the further advances were made after the secured loans.

It is technical and does not really affect you.

mrs_mi5tery

xylophone wrote: »

Puzzled by this - link says" A. If you decide you do not want to move after exchange of contracts you can be sued for breach of contract by other parties in the chain. Any deposit you may have paid on exchange of contracts will be forfeited by the seller if you fail to complete a purchase after contracts have been exchanged."

Also "The contracts you have signed will contain a clause which states that a certain rate of interest (usually 4% above the base rate) is payable on the purchase price for every day that completion is delayed and the liability for the delay will be passed down the chain but will rest with the party who is at fault. You should also be able to make a claim against the defaulting party for any costs incurred with removal firms or for overnight accommodation should this be necessary."

The first paragraph is incorrect: what deposit does a seller pay? If a buyer pulls out, then the buyer's deposit is forfeit TO the seller.

The second paragraph - yes, we're getting a 4% back for every day he delays us. But, this is how that is calculated: (purchase price/100*4)/365. Effectively, his 'penalty' for every day he delays us is not even £20. How is that fair - that the buyer forfeits 10% automatically whereas the seller only gets penalised 4% OVER A YEAR, meaning, pittance daily??

If he truly does complete on Tuesday, he will only owe us just under £140 for the delay. In the grand scheme of buying a new house, its nothing.

Guest101

ValHaller wrote: »

There is a first mortgage on the property against which further advances can be made. Anyone making a loan secured on the property must accept that all advances against the first mortgage have priority over secured loans even if the further advances were made after the secured loans.

It is technical and does not really affect you.

Well said. It basically means they are a primary lender. If you own your house outright and want a small loan, ironically you can get it secured against your home, as most lenders are not 'primary' - this is something ive encountered alot.