Court Order to Sell Property

ajay1987

Hello Everyone

I am hoping anyone who has any experience in this area can give guidance.

In brief, My partner took out a court order to sell our property after our relationship ended. He had promised to split the equity 70/30 in my favour as a gesture of good will due to his behaviour towards me.

In the end the court order ended up being a 50/50 split with an agreed estate agent at a current market price not detailed in the order.

This is where the water muddies.

Jan 2017
The property was put on the market at £219,950 as valued by the estate agent with lots of viewings but no offers.

April 2017
We agreed to drop the price to £205,000 in hope it would attract an offer in which it did a lady put an offer in of £207,000... She then pulled out after a detailed survey advising that there was problems but would not provide us the survey as she paid for it (fair enough). She weirdly had an offer accepted on another property a day later!

May 2017
We received another offer of a very low £170,000 in which we declined straight away, they increased the offer now at a maximum of £185,000.

I still think this is too low and hinders my next option to buy a house using the lower amount of equity at a sale at this price...... but my ex partner is now threatening that if I don't accept the offer he will take me to court and get the paperwork signed by a judge!!!!

Can he do this???????????

Thanks in advance.

prosaver

the judge can make you get t2 surveyors to value the home and you have to sell it at that price..usually, the surveyor gives you a low price.
I google what can u do if you get a low price and its cr$p, they can do what they want.

pphillips

What paperwork is he talking about? The offer is only verbal at this stage and either party is free to pull out anytime before exchange of contracts.

What do the court papers say about the sale price? If the asking price is £205,000 then I think you should be able to decline an offer of £185,000 without repercussions.

If it's not a reasonable offer then I don't think the judge would force you to sell at that price.

pinkshoes

Tell him you will accept the offer but only if you get 70% of the equity and he signs a solicitors document to state this.

How much equity is there in the property?

paddy's_mum

It crosses my mind that your former partner has already involved the courts and now is minded to do so again.

Has there been obstruction involved somewhere because if so, I believe a court can award costs against the party it believes is being unreasonable or declining to engage in sensible negotiation.

Would it break the apparent log-jam to have three estate agents value the property and try to arrive at a median price which is likely to be offered/accepted?

ajay1987

Thank you for all you're replies they have been very helpful and encouraging.

I became stubborn because he went back on his promises and he then filed for a court order which is in place which rules a 50/50 split on the equity.

Within the court order it states:
The property shall be placed on the market for sale immediately for such price as may be agreed between the parties or in default of agreement determined by the court.

So within the agreement no value has been determined, we have only had one estate agent acting for us.

They originally valued the house at £219,950, we then agreed to drop to £205k in hope for a quick sale.

Equity in the house is £55k at the £205k price.

I put the offer to him yeasterday that if he could give me more equity at the £185k price then I can accept..... his answer was an expected no.

pinkshoes

ajay1987 wrote: »

He had promised to split the equity 70/30 in my favour as a gesture of good will due to his behaviour towards me.

In the end the court order ended up being a 50/50 split with an agreed estate agent at a current market price not detailed in the order.

Do you have it in writing that he agreed to 70% for you? Why did it then end up being 50%? Why did he change his mind?

So a £185k sale would leave £35k equity, so £17k each after costs. rather than £27k at £205k.

What you need to do QUICKLY is some research. What price have houses very similar to yours ACTUALLY sold at recently?

If you can only find similar houses selling at £180k, then £185k might be seen as acceptable. However, if you can find evidence of houses having sold at over £200k, then you can justify holding out for a higher offer.

Your buyer offering £170k then jumping all the way to £185k is a HUGE jump in money. It suggests to me there could be more, so how about a counter offer of £200k, and see if they come back with £195k?

DavidP24

Get your own full structural survey, decide if the thing that put them off is worth fixing or discounting the property for.

The Survey can be shown to new buyers if interested.

Look at the price of similar properties in the area on Zoopla and Right move, if there is a big difference that you can't explain get another valuation from a different agent.

I find that most places have agents that sell on value and agents that sell it cheap to get on with the next.

To get the best price you need to stage your home, put your clutter in storage, decorate to simple tasteful colours.

It is in both of your interest to do this.

Also bear in mind this new buyer may be an associate of your ex.

ajay1987

Thanks Pinkshoes :-)

I have emails saying he would but only a trust of declaration would of made it concrete which he refused to sign.

Because this court order is now in force It would be hard to change it.

I think the reason why he changed his mind, I can see it now that he has gone.... He is a very selfish and I think you could call it jealous person.

He hates other people doing better than him. I am now in a well paid job and when telling him I had planned to buy another house he really didn't like it and that's when he changed his mind.

You could say he is trying to clip my wings.

I had a look on Zoopla/Rightmove and for the area £185k would buy you a 1 bedroom house, a coach house or a flat.

Mine is a 3 bedroom terraced house close to town.

Property 2 doors down sold for £198k in Sept 2014
Property 4 doors down sold for £250k in Oct 2016 (this had been renovated very modernly with a conversion to the cellar).

The potential buyer will not budge :-(

But I have faith that he can not force me to sell at this lower price and impact my future :-)

ajay1987

DavidP24, thanks for the reply, you're last line has just triggered something.

Also bear in mind this new buyer may be an associate of your ex.

Thank you so much :-)

DavidP24

Even if he went to court I think you have evidence to show that price undervalues your investment.

The trick here is to delay delay delay, propose the full structural survey to your ex, get their agreement to pay half.

Get all the local agents in, ask each to give you a valuation quoting, best price obtainable, typical price and price for quick sale.

Ask each one what activity they would do if you appointed them as agent, look at prices they sell other property at, are they a box shifter or a premium agent.

Remember agents are full of flannel, you ideally want someone who is professional, experiences but hungry.

Meanwhile tell your old agent you are not satisfied with their activity level and you are looking at other agents, if they have you on a sole agency, then explain to them that you either need a substantial increase in marketing activity or else you will take it off the market and leave them bad reviews for their lack of service.

In terms of marketing activity you need to get several buyers lined up who compete with each other, agent should be doing an open day or something similar, they should prepare details at original price but say that the vendor is open to serious offers from credible buyers than can act quickly

It makes no sense that Ex wants to accept low ball price unless he has another property that he is ready to jump on.

Getting other agents in and obtaining a full structural survey are all reasonable things.

If he went back to court you can ask the judge to consider his previous offer of 70% and say that you have already taken a hit of 20%, then dropped price and now this lowball offer is too much.

Ask for 3 months to give agents chance to get realistic price, you will probably not get that but a sympathetic Judge may give you two months and may increase your percentage.