What fees is a vendor liable for when they pull out of a sale?

FIRSTTIMER

Just curious...if my seller pulls out before exchange (always think the worst)


Do they pay estate agent fees?
Do they pay solicitor fees relating to initial draft contract?


Who stands to loose the most usually - sellers or buyer?


Thanks

HB58

Each party are responsible for their own costs, no matter who decides to stop the process, up to the point contracts are exchanged.

FIRSTTIMER

I understand that but what fees are normal for a seller to pay if they withdrew

HB58

FIRSTTIMER wrote: »

I understand that but what fees are normal for a seller to pay if they withdrew

It depends on their contracts (with EA for instance) and how much work had already been carried out. They are not responsible for any of the buyers costs.

Red-Squirrel_2

FIRSTTIMER wrote: »

I understand that but what fees are normal for a seller to pay if they withdrew

It completely depends how far along in the process they are and what kind of contract they have with agents/solicitors/brokers/lenders etc.

There isn't really any 'normal', each failed sale will be different.

JP1978

I cant imagine any EA having terms that would allow a property to be marketed, viewed, offered on and then pulled off the market without some kind of fee - whether that be an early withdrawal fee or the full amount. Once an offer is in place, that is 95% of the EA's work completed - they aint gonna give that away for free are they?

Re solicitors, it would depend on how far through the process they are - could be £0 if they have made no reply to the official offer, or could be a substantial amount if many letters have been drafted and sent.

Its a how long a piece of string - however, to satisfy your worrying, yes, if a seller withdraws, they will also incur costs - maybe not so much as the buyer though - Broker fee's, searches, conveyancing.....

FIRSTTIMER

thanks for this

3mph

JP1978 wrote: »

I cant imagine any EA having terms that would allow a property to be marketed, viewed, offered on and then pulled off the market without some kind of fee -


Well we had two flats which we had put in offers over the last 4 months, these had been accepted, each time the EA had written to confirm this, we had done searches etc to have both vendors pull out, and I know the EA didn't charge in either case which was really annoying. A third one hadn't gone on the market so no paperwork or EA agreement before the vendor pulled out.

GoldenShadow

My estate agent has no fee if I withdraw my property before sale. I specifically asked and they said they can get me an offer at full asking price and I am entitled to say no with no penalty.

JP1978

GoldenShadow wrote: »

My estate agent has no fee if I withdraw my property before sale. I specifically asked and they said they can get me an offer at full asking price and I am entitled to say no with no penalty.

That is with a condition though isnt it - no fee IF you dont get full asking price, not no fee if you decide not to sell.

But it appears I may be wrong on EA's listing properties with no fee if the vendor pulls out - that cant be a common business model though? They would have vendors just having their house on the market to test the waters and wasting everyones time

eddddy

In my experience...

In areas where the property market is buoyant, and prices are high (e.g. the South East), it's easy to get a "No Sale, No Fee" EA contract.

i.e. You pay nothing to the EA if you change your mind about selling for any reason (or switch to another EA).



In areas where the property market is slow, and prices are low, it can be very difficult to get a "No Sale, No Fee" EA contract.

The EAs insist on "Ready, willing and able buyer" clauses and often withdrawal fees.

i.e. If the EA finds a "Ready, willing and able buyer", and you change your mind about selling - you have to pay the EA's full fee.