Can a seller pursue conveyacing with 2 buyers at same time?

gofish

Hi,

This is a vague question but just wanted to know if it is possible given the current seller oriented housing market in London. I am a first time buyer. I would to know that is it possible for a seller to accept offer from two buyers and pursue conveyancing with both of them and gazump one of them at a later stage. I am just concerned that as a buyer I may loose all the money invested in solicitor, searches, homebuyers survey and mortgage application.

Thanks

Bantex_2

gofish wrote: »

Hi,

This is a vague question but just wanted to know if it is possible given the current seller oriented housing market in London. I am a first time buyer. I would to know that is it possible for a seller to accept offer from two buyers and pursue conveyancing with both of them and gazump one of them at a later stage. I am just concerned that as a buyer I may loose all the money invested in solicitor, searches, homebuyers survey and mortgage application.

Thanks

Either party can pull out at any time up to exchange.

gofish

Bantex wrote: »

Either party can pull out at any time up to exchange.

I know that. But my question is related to a seller double dealing with two buyers as a safequard and pulling out of sale with one of them before the exchange of contracts.

G_M

It is possible.

Pretty underhand and very rare. I'm not sure a solicitor would agree to do this, though suppose if that was the seller's instructions to him he'd have to do it.

I once put a property back on the market when a buyer had been delaying unnecessarily/inexplicably, & found a new buyer.

I told the old buyer he could still have it if he Exchanged before the new one, and told the new buyer exactly what was going on & said if he wanted to pursue he could have it if he Exchanged first.

New buyer bought the property.

jjlandlord

gofish wrote: »

I know that. But my question is related to a seller double dealing with two buyers as a safequard and pulling out of sale with one of them before the exchange of contracts.

Bantex has provided the reply.

In such situation it is for the prospective buyer to decide whether he is happy to be 'played' as such.

G_M wrote: »

Pretty underhand and very rare. I'm not sure a solicitor would agree to do this, though suppose if that was the seller's instructions to him he'd have to do it.

As long as solicitor gets paid, it is not for him to agree on that.

mgarl10024

I guess it is a little meaningless, but I always make my offers on the condition that the property is taken off the market and further offers wont be considered. It wont stop anything - i.e. the seller can still consider and accept another offer, but I'm making it clear to the seller that if I hear about it then I'm immediately off.

silvercar

AFAIK, if a contract is issued to a second buyer, the first buyer has to be informed under the solicitors code of conduct.

So you should at least know that you are in a contract race.

gofish

G_M wrote: »

It is possible.

Pretty underhand and very rare. I'm not sure a solicitor would agree to do this, though suppose if that was the seller's instructions to him he'd have to do it.

I once put a property back on the market when a buyer had been delaying unnecessarily/inexplicably, & found a new buyer.

I told the old buyer he could still have it if he Exchanged before the new one, and told the new buyer exactly what was going on & said if he wanted to pursue he could have it if he Exchanged first.

New buyer bought the property.

I agree if one buyer is taking too long then its justified ifthe buyer is informed of the seller’s intent by the estate agent. But is itpossible that the seller takes up double dealing from the start of the process andas a buyer I am never informed and gazumped just before the exchange. Regardingthe point that if the solicitor will agree to it, doesn’t the law societyprotocol require the solicitor to deal in an ethical manner. There could beseveral reasons for double dealing such as the seller is in a chain and wantcompletion by certain date or wants more money at last moment.

gofish

silvercar wrote: »

AFAIK, if a contract is issued to a second buyer, the first buyer has to be informed under the solicitors code of conduct.

So you should at least know that you are in a contract race.

So there is a safeguard to at least inform all buyers involved.

jjlandlord

gofish wrote: »

So there is a safeguard to at least inform all buyers involved.

No because, whatever silvercar means by 'contract issued', the solicitors may not know.

However, considering the scenario the vendor will probably want all prospective buyers to be aware of it because that's the point of the game, isn't it?

davidmcn

jjlandlord wrote: »

No because, whatever silvercar means by 'contract issued', the solicitors may not know.

Or (if we really want to pursue theoretical risks) they might not be using the same solicitor for both transactions.