First Time Buyer - Vendor Issues before Exchange

mack83

We're first time buyers. The vendor's asked us to meet them today to discuss the sale of items not 'included' or 'fitted' in the inventory, attached to the exchange documents.
The discussion with the vendor worried us greatly, we would really appreciate your advice?

The vendors stated the following (orally):

They currently have insufficient funds to provide deposit for exchange on the more expensive property they intend to purchase.
They stated they were unaware of our deposit in proportion to mortgage value, and assumed a higher deposit throughout the sale process.
They proposed to use our stamp duty monies against their deposit shortfall.
They inferred to us that it was either our fault, our solicitor's, or their agents, for this 'miscommunication' and we should bear the risk.

In response, we stated (orally):

• We have appropriate funds, and have paid this in full to our solicitor including deposit, legal fees and stamp duty.
• We have advised the estate agents and our solicitors, our financial circumstances from outset, and provided proof of funds.
• We have met all contractual obligations.
• We have a mortgage offer for to meet their asking price in full.
• We will not pay a higher deposit.
• We will act in good faith to complete the contract.

As result of this discussion, we have instructed our solicitor to:

• Please confirm that the vendor's solicitors have been appropriately instructed of our deposit value of their agreed asking price. (We are confident this has been done)
• Please do not exchange contracts, or monies, until the vendor's solicitors confirm acceptance equal to current deposit, and no greater.

Anything we are missing?
We're worried at this stage of sale sale.... we were due to exchange on Monday!

Thank you

csgohan4

The deposit has nothing to do with the vendor. They will get the offer price, nothing less and nothing more.


I think this is the beginning of gazumping and be weary.


I wouldn't worry about a few carpets, is it worth losing a house over??

Person_one

I think your vendors have probably been asked to sign a form that they will provide a 10% deposit on their new property at exchange that they will lose if they fail to complete.

This is standard, and solicitors are well used to sorting it in situations where there isn't enough cash at the bottom of the chain to provide 10% all the way up. If they weren't, virtually nobody would ever move out of their first home!

If this is the case, it isn't your problem, it isn't even really your vendor's problem, and they're going to feel a bit silly when their solicitor rings them after speaking with yours.


(Be firm about carpets etc. they'll probably leave them anyway unless they value spite more than their own time and energy. Its not like they'll fit the new house.)

anselld

Vendors are talking nonsense. Stop communicating with them directly and deal through your solicitor. Oral communication on any matters relating to the sale contract is completely pointless and potentially missleading.

mrginge

Sounds to me like you played this one perfectly by telling them to do one.
As stated above, in a chain the actual physical deposit may not be 10% but this is entirely normal and is dealt with by solicitors regularly.

Thrugelmir

anselld wrote: »

Vendors are talking nonsense. Stop communicating with them directly and deal through your solicitor. Oral communication on any matters relating to the sale contract is completely pointless and potentially missleading.

Second this.

" The vendor's asked us to meet them today to discuss the sale of items not 'included' or 'fitted' in the inventory"

Sounds like false pretences judging by your comments.

mack83

Thanks everyone. Much appreciated.

AnotherJoe

csgohan4 wrote: »

I wouldn't worry about a few carpets, is it worth losing a house over??

Where did the OP mention carpets?

G_M

There are two uses of the word 'deposit', and your vendors are confusing them.

mack83 wrote: »

They currently have insufficient funds to provide deposit for exchange on the more expensive property they intend to purchase.
Their finances are not your concern. Just ignore. And hope that their purchase does not collapse, delaying their sale.

They stated they were unaware of our deposit in proportion to mortgage value,..
Your 'mortgage deposit' is your own affair. It has nothing to do with the 'purchase deposit' (usually 10%) you pay at Exchange of Contracts.

You may be getting a 100% mortgage (zero 'mortgage deposit'), a 90% mortgage (10% 'mortgage deposit'), or a 50% mortgage (50% 'mortgage deposit'). That makes no difference to the 10% purchase deposit at Exchange and is not the seller's business.

They proposed to use our stamp duty monies against their deposit shortfall.
:rotfl::rotfl::rotfl:

They inferred to us that it was either our fault, our solicitor's, or their agents, for this 'miscommunication' and we should bear the risk.
It's a common problem. 10% on their sale price is ofeten smaller than 10% on their purchase price (assuming they are buying a more expensive property.

The solution is for them to ask their seller to accept 5% instead at Exchange. Their seller may or may not agree (but usually does).

In response, we stated (orally):

• We have appropriate funds, and have paid this in full to our solicitor including deposit, legal fees and stamp duty.
• We have advised the estate agents and our solicitors, our financial circumstances from outset, and provided proof of funds.
• We have met all contractual obligations.
• We have a mortgage offer for to meet their asking price in full.
• We will not pay a higher deposit.
• We will act in good faith to complete the contract.

well and good but irrelevant. This is their problem not yours.


As result of this discussion, we have instructed our solicitor to:

• Please confirm that the vendor's solicitors have been appropriately instructed of our deposit value of their agreed asking price. (We are confident this has been done) Not necessary. The contract which you sign will state you need to pay 10% at Exchange
• Please do not exchange contracts, or monies, until the vendor's solicitors confirm acceptance equal to current deposit, and no greater. Not necessary.Your solicitor will not exchange until you are ready (ie all your money confirmed and all searches etc satisfactory.) Whether/when the seller's solicitors agree to Exchange isdown to whether they are ready with their purchase and that's down to them

Thank you

You are over-thinking this. The seller needs to talk to their solicitor.

alchemist.1

AnotherJoe wrote: »

Where did the OP mention carpets?

Edited out by the looks of it.