Buyers Pulled Out Citing Subsidence in Another Flat in Block

Electra99

Hi all,

I accepted an offer of the full asking price on my ground floor flat back in April 2014. The buyers were extremely keen, couldn't wait to see it and immediately put in the full asking price on the same day.

We have been waiting on them to exchange contracts for a month when today they announced that they are withdrawing because of the underpinning works due on another flat in the block. The facts are as follows:

- I was upfront about the subsidence problem with this other flat, noting it in the first correspondence to my solicitor with copies of all correspondence from the managing agent and I even noted it in the property information form so I do expect the buyers would have known about this since at least May 2014.
- The flat affected by subsidence is not near my flat and my flat does not have any subsidence problems. Flat owners are expected to need to pay £250 towards the cost of underpinning works for the flat affected by subsidence in the next year or so. I was also upfront about this detail.
- The buyers did not submit any enquiries relating to subsidence to my solicitor during the process.
- I knew about the subsidence problem back when I bought the flat in March 2011 and a number of flats in the block have been bought and sold in that time so it clearly is not stopping other sales.

All in all, this has really taken me by surprise. I am frustrated it took the buyers between May to today to announce that this is a deal breaker and furthermore, I don't believe the subsidence issue affects my property at all.

Is my frustration justified and should I take a different approach now that I am forced to go back onto the market?

Is it common for subsidence problems in nearby properties to affect the sale of others?

Thanks,

Monday Misery

Eejay

Sorry that you've ended up in this situation. I don't think you've done anything wrong - maybe they just got cold feet or found somewhere they liked more and made up an excuse to pull out.

We recently sold a flat and made it quite clear that there was a possibility the lift would need replacing in the next few years, and that we'd be responsible for about 3% of the cost (our flat was one of the smallest so we were responsible for a tiny percentage of the service charge). We worked this out to be about £1,800. When I say we made it "quite clear" - we'd told the EA there were possibly maintenance costs coming up, but the solicitors knew about the precise details because my husband handed over every piece of paperwork he'd ever received for the flat, and all this information was in there. The buyer therefore had access to this information very early on, but she left it months before making an issue out of it.

Suddenly she demanded we pay half of the costs (despite us only living there 3 years and the lift being about 15 years old) or put all of the money into an account and if the work was agreed within the next year, she'd keep all the money. The EA was keen for us to accept the request for half of the money (some members of the residents' association wanted the lift removed entirely so it's not even a certainty that it'll happen) - probably because he was due to get the same amount regardless of what we sold the flat for with it being under £100,000! - but we listed numerous reasons why we weren't responsible for the costs and offered to knock £500 off as a 'goodwill gesture'. If she hadn't accepted that we'd have stuck the property back on the market - we weren't going to be walked all over!

At the end of the day it sounds like you've done everything fairly - and I think your frustration is completely justified!

bmunky7

Sounds like a convenient excuse for your buyer's who have got cold feet or found something else they like etc... I'd stick to being upfront about subsidence issue and and next time you'll probably have no issues with a new buyer. Good luck!