"Cash" buyer doesn't have the cash

Cardiffborn

I wonder if someone could advise me please.

I agreed a reduction in the price of a sale as it was a "cash" buyer who wanted to be quick. The estate agent is a member of NAEA. Surely they should have obtained proof of funds, indeed I was told that until he brought this in they couldn't proceed.

Anyway today I ring my solicitor to chase and I'm told that they are waiting for a mortage offer. I was not very happy so I rang the estate agent who said they would look into this. EA comes back to say oh its a remortage. Why wasn't I told I say. EA says well it looks like its nearly agreed. I am not happy because I should have been told.

Is there anything I can do as they are part of the NAEA?

Fed up to the back teeth of EAs. Think I will buy a tent as its less hassle!!!

regularsaver1

we're cash buyers but we weren't asked proof at before we've put in offer

Cardiffborn

I should say this has been a few weeks now. The buyer said the sale would be completed within a few weeks.

I have been messed around before with another estate agent, and the new one knew this.

regularsaver1

I think they should have checked, and the solicitor as well. We expect that we will have to show a bank statement and evidence of where the funds have come from

Cardiffborn

I am emailing the estate agents to say I want to see the so called proof they saw.

All I get when I said did you get proof was well they should be able to complete soon, it shouldn't be long now. I don't like being told one thing and then another.

MissMotivation

Proof of cash, by way of a bank statement or solicitors/accountants letters should have been given before the offer was agreed.

Have you got any written correspondance stating it was supposed to be a cash purchase?

I would ring the EA, ask to speak to the Manager, ask them to explain why you were told it was a cash purchase and why the purchasers are now dependant on a mortgage. Be direct, you are paying them, they are supposed to be working for you! If they are not forthcoming with this information say you wish for your property to be put back on the market until you know when your purchaser has the funds available!

pinkshoes

I presume the entire reason you lowered your price was that this was a CASH buyer who would exchange and complete very quickly, and if you'd known they'd be messing around with a mortgage, the reduction wouldn't have been offered?!?!

I would be very direct with the EA and tell them you want to see the proof that this was a cash buyer, and tell them to put your house back on the market immediately incase any genuine cash buyers come along! I've known some EAs to say some devious things, so they might have told the prospective buyer that if they SAID they were cash buyers, they'd get a discount... If you had other offers from non-cash buyers then I would be tempted to pull out!!

regularsaver1

Exactly, you accepted an offer based on them being cash buyers - sounds like they are not really and you are being fobbed off

epz_2

put the price back up since they messed you about, the buyers have messed you about an it is them that paid for the survey

benood

I think that if they don't have anywhere to sell then effectively they are cash buyers - remortgaging shouldn't take very long. It would be unreasonable in my opinion to expect them to show you a bank statement with £x in it as "proof" and it might mean nothing in any case - that is often cash buyers do have cash resources to enable them to buy if it was imperative but generally they don't want to own two properties at once and actually delay and delay until they sell.

The real question to ask yourself is: do they want the house or are they going to pull out after another month or two - as long as things are happening - survey searches etc I'd just keep chasing the sols and try to stay calm.

regularsaver1

benood - they are relying on a mortgage though, its more they have no chain, rather than cash.

they have to have proof for their solicitor