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Is this legal?
ConfusedofYorkshire
Posts: 538 Forumite
We are in the process of buying a house.
The survey showed some issues and we have obtained quotes for teh repairs and treatment and then informed the estate agents with an eye to renegotiation.
They said it was normal to go 50/50 and to request to reduce the cost of offer price so we did this.
The vendor came back with a lower reduction.
I told the estate agent that we need to keep our loan to value the same which means that the reduction would only give us a tiny bit of money to do the work and a small reduction in our monthly payments.
They suggested that we keep the selling price the same, and that the vendor gives a cheque to the EA to be passed to us between exchange and completion.
So, is this legal? The other option is for her to pay the contractors but everyone has told me that I need to remain the client and have the contractor work for me so that corners aren't cut (which makes sense)
thank you for any responses
The survey showed some issues and we have obtained quotes for teh repairs and treatment and then informed the estate agents with an eye to renegotiation.
They said it was normal to go 50/50 and to request to reduce the cost of offer price so we did this.
The vendor came back with a lower reduction.
I told the estate agent that we need to keep our loan to value the same which means that the reduction would only give us a tiny bit of money to do the work and a small reduction in our monthly payments.
They suggested that we keep the selling price the same, and that the vendor gives a cheque to the EA to be passed to us between exchange and completion.
So, is this legal? The other option is for her to pay the contractors but everyone has told me that I need to remain the client and have the contractor work for me so that corners aren't cut (which makes sense)
thank you for any responses
0
Comments
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Don't do it. What will you do if the cheque doesn't materialise? There won't be anything in the contract for the house purchase that mentions it.0
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It's legal for them to write a cheque to you. It's also legal for them to cancel the cheque before you ever get to cash it.0
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I know a retired nigerian general who needs somewhere to hold his $20m fortune if you're interested....0
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nah she isn't that sort of person. I know anyone can say that but she is an elderly woman and isn't the sort to do that.
However- how about if instead the money was transferred to the solicitor and we got it that way?0 -
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ConfusedofYorkshire wrote: »how about if we do put it in the contract?
Then that would a vendor gifted deposit and your mortgage company would not allow it0 -
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jjlandlord wrote: »No, it's not legal to dishonour a cheque, which is an unconditional promise to pay.
It does not mean that what the EA proposes is a good idea for OP, though.
So discounting the possibility of her cancelling the cheque- why would this be bad for us?0 -
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ConfusedofYorkshire wrote: »So discounting the possibility of her cancelling the cheque- why would this be bad for us?
Because you will have lied to your mortgage company and solicitor.
There is no up side for you on this deal. You take all the risk and end up over paying for the house.
Dare i suggest you tell the EA you will only pay the amount of the valuation?0
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