Was not informed of Contract Race and lost house

Gina2210

We had an offer accepted on a house on the 21st February 2017 and have been proceeding with the house sale with no problem, we had the valuation done and paid for the searches, our solicitor raised some enquiries so it was all going to plan. Then today my solicitor rang to say she had received notification that the house has been sold to another buyer as exchange and completion have taken place today and that it was a contract race which she never knew about, we were never told either that there was any such thing and had never even heard of it. We have paid out for a valuation and £375 for searches, we have a mortgage in place and am absolutely gutted to have lost the house. Should our solicitor have asked about the contract race or should the seller solicitor informed everyone, any help is welcome as we just don't know who is responsible and what we can do about it, we know we have lost the house now but feel someone should accept responsibility for not performing in an ethical and legal manner

easilydistracted

If your solicitor and you were not told there was a contract race that's terrible form by the seller. Ethically they are responsible. There's no way your solicitor should have thought to raise it as that's not how house buying works. Legally noone is responsible that I can think off, flaw of the English sales system! What does the estate agent say?

Gina2210

The estate agents were apologetic but saying there is nothing they can do and also said they were not informed either and today was the first time they had heard about the contract race.
If we had known about the race we would have pulled out because our house has not completed so we know we would not have won the race, so we have lost money and a house, is there anyway we can get the searches money back? if just seems ridiculous that this can happen without anyone having to answer for it

ScorpiondeRooftrouser

You haven't "lost" a house.. You have lost money, due to the vendors of that house being selfish ****s. Unfortunately there's no laws governing being a selfish ****.

easilydistracted

Well if the estate agent didn't know either than legally there is nothing to be done. Hopefully karma will get them!

silvercar

I thought there was a Law Society regulation that required the seller's solicitor to notify the buyer's solicitor when another contract was issued.

Surrey_EA

silvercar wrote: »

I thought there was a Law Society regulation that required the seller's solicitor to notify the buyer's solicitor when another contract was issued.

I too believe that to be the case.

See rule 11.3 here:

https://www.sra.org.uk/solicitors/handbook/code/part5/content.page

Flugelhorn

was it being sold by multiple estate agents? if not then really the agent you dealt with should have known

steampowered

If the seller used a conveyancing shop rather than a solicitor, conveyancers are not regulated by the SRA, so the link posted above would not be relevant.

I don't think you can blame your solicitor or your estate agent. There is no way for them to know there was a contract race unless they were told about it.

Unfortunately it is one of those things. The sale can always fall through before contracts have exchanged.

Gina2210

It was being sold by one agent and the buyer was bought in by the agent. Apparently they had put an offer in before us and messed the seller around so much that he put it back on the market, which is when we put in the offer. But the agents say they didn't know anything about a contract race. I think everyone agrees it is unfair but from what you all say there is nothing we can do,

stator

Put in a small claims court claim against the seller.
You might win or you might lose the fee.