Buyer has pulled out just before exchange, help!

GrumpyTeacher

Brief scenario-

3 way chain, buyer, me, vendor. We all signed contracts last week with the view to exchange this week.

EA phoned this afternoon to say my buyer has pulled out with no explanation. Leaving emotions to one side, I need some experienced advice.

We've had a viewing already today and 4 lined up for tomorrow. My vendor doesn't know about the situation yet.

If we can get a buyer from the next two days will we be able to continue with our purchase? I know it's probably a daft question but houses do not pop up often here so I need this to work out.

Having done a rightmove search there are only 4 2 bed properties on the market. Two under our price but ones a coach house and one has no parking and rooms are more awkward dimension wise. The other two are 10k over and rooms are only slightly bigger but they have downstairs loos and one has a garage.

So I'm hoping we stand a chance. If we can get a buyer by early next week are we ok? My vendor was trying to delay things anyway by around 3 weeks or so so it might work in his favour as long as it's quick.

The EA also said they can suggest any new buyer instructs our old buyer's solicitors so all the paperwork is ready to go.

In the golden scenario if all the paperwork is done etc then could it still move quickly?

So to summarise (sorry!) a) can we still get our new house and b) if we pick up a new buyer will it be less than say 4 weeks or more if all paperwork is complete (which it is).

Thanks

alchemist.1

GrumpyTeacher wrote: »

Brief scenario-

3 way chain, buyer, me, vendor. We all signed contracts last week with the view to exchange this week.

EA phoned this afternoon to say my buyer has pulled out with no explanation. Leaving emotions to one side, I need some experienced advice.

We've had a viewing already today and 4 lined up for tomorrow. My vendor doesn't know about the situation yet.

If we can get a buyer from the next two days will we be able to continue with our purchase? I know it's probably a daft question but houses do not pop up often here so I need this to work out.

Having done a rightmove search there are only 4 2 bed properties on the market. Two under our price but ones a coach house and one has no parking and rooms are more awkward dimension wise. The other two are 10k over and rooms are only slightly bigger but they have downstairs loos and one has a garage.

So I'm hoping we stand a chance. If we can get a buyer by early next week are we ok? My vendor was trying to delay things anyway by around 3 weeks or so so it might work in his favour as long as it's quick.

The EA also said they can suggest any new buyer instructs our old buyer's solicitors so all the paperwork is ready to go.

In the golden scenario if all the paperwork is done etc then could it still move quickly?

So to summarise (sorry!) a) can we still get our new house and b) if we pick up a new buyer will it be less than say 4 weeks or more if all paperwork is complete (which it is).

Thanks

It would require the previous buyer to agree to release all documentation to the new one. The solicitor cant just copy everything across.

Secondly it is unlikely to be the same mortgage company, so they will need to make sure all work has been carried satisfactorily to protect their interests and they are on the lenders panel.

Your estate agent is being overly optimistic to this being an option even if the new buyer is happy to use the old buyers solicitors.

GrumpyTeacher

Bummer. What about not losing the house? What's more likely if we find a buyer quickly?

Rosetinted

GrumpyTeacher wrote: »

If we can get a buyer from the next two days will we be able to continue with our purchase?

I'm afraid none of us can really tell you that. So much is dependent on the buyer and how quickly they can proceed, plus their lender and whichever solicitor they choose. I'd say it's very unrealistic to think that you'll be able to find someone new and get everything done in 4 weeks.

What you can do is go back to your vendor, tell them the situation and try to beg for more time. Remember that if they lose you, they have to go back to the drawing board too, which is probably not their preferred outcome.

It's not as simple as handing the paperwork over and carrying on. If the new buyer doesn't want to use the same solicitor (fair enough, really), whoever they appoint will be liable if they get anything wrong, so they're hardly likely to accept a half-finished bit of work from someone else and carry on with it. The solicitor would have to start the conveyancing process again, which takes time. Even if the solicitor were the same and the previous wannabe-buyer agreed to hand over all paperwork, the lender probably won't be the same, so a new mortgage application and valuation must be done, which will likely take more than four weeks.

These are just a few of the dozens of things that can slow the buying process. Even with the buyer's best intentions to complete ASAP and any promises they make, they cannot guarantee they'll be able to do so. It's possible that if you found a cash buyer you could get it done, but then you'll likely take a hit on the sale price, especially as you're desperate to sell fast.

IMO your best bet is to grovel to your vendor and see what their response is.

alchemist.1

GrumpyTeacher wrote: »

Bummer. What about not losing the house? What's more likely if we find a buyer quickly?

If you find a buyer quickly you should be fine as its probably not worth their hassle putting it on sale again. Most will be prepared to wait a short period of time.

GoldenShadow

Our seller had his happen. His buyer dropped out the week before exchange. Madly desperate to go ASAP he was, apparently. We were ready to exchange from four weeks past offer acceptance. Took him a whole week to sign and post his contract back which still didn't arrive so his solicitor had to sign on his behalf, completed five weeks to the day. Considering they wanted to go quick they didn't pull their finger out by any means, it felt like pulling teeth.

We were able to go so fast because 1) a family member did our conveyancing so did everything ASAP, 2) we already had a mortgage offer on another property so the lender didn't redo all paperwork etc, just did the behind the scenes things which took less time. We were also very keen to go, lots go FTBs seem to dither from what I gather.

cns06

It will come down to a) buyers position and b) how fast their solicitor / lender are. B is out of your control. Our solicitor has been quick on some things but sloooooow on others. I don't think its helping out transaction. A - however, you can control - but it will come down to time. It may take longer for you to find a FTB for example than someone who is in a chain.... all I would say is get cracking asap and hope you are lucky.

GrumpyTeacher

Hi all, but of an update. Had 3 offers within 24hrs and expecting one on Monday. FTB £4k short of what we sold for before, a cash buyer but needs to sell first for £1k more than before and a couple investing for £4k more than before.

The investors will need a mortgage but they're buying another property through EA so have instructed etc and have made contact with lender, think their other purchase is a week or so down the line.

Is there anything I can do to speed things up now?