"Cash" buyer doesn't have the cash

MissMotivation

benood wrote: »

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.

A cash buyer is someone who has the cash in the bank NOT someone relying on a mortgage.....remortgage or otherwise!

I don't understand your comment about them being effectively cash buyers if they need a mortgage

A bank statement is reasonable proof......why on earth wouldn't it be?

jaype

Negotiate down the EA's fee - they have misled you.

macaque_2

Cardiffborn wrote: »

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!!!

Common justice dictates that you should make the buyer pay the original price although common sense may suggest that you do otherwise.

Nenen

I wouldn't trust a single word an EA says... apologies to the, very few, honest EAs in the world but I've been lied to too many times by the many to be able to begin to believe the few!

MissMotivation

Nenen wrote: »

I wouldn't trust a single word an EA says... apologies to the, very few, honest EAs in the world but I've been lied to too many times by the many to be able to begin to believe the few!

I fear I am fighting a loosing battle! Beginning to realise there are very very few trustworthy EA's left!

hearts

MissMotivation wrote: »

A cash buyer is someone who has the cash in the bank NOT someone relying on a mortgage.....remortgage or otherwise!

I don't understand your comment about them being effectively cash buyers if they need a mortgage

A bank statement is reasonable proof......why on earth wouldn't it be?

I actually agree with him. A cash buyer is just a way of saying they are not in a chain and there funds are coming from elsewhere. Such as a remortgage.
They are not trying to get a mortgage on your place they are simply remortgaging another.

MissMotivation

hearts wrote: »

I actually agree with him. A cash buyer is just a way of saying they are not in a chain and there funds are coming from elsewhere. Such as a remortgage.
They are not trying to get a mortgage on your place they are simply remortgaging another.

Incorrect....a cash buyer is just that...someone who is buying the property with cash and not borrowing the funds from a lender!

If they don't have the cash readily available, in a bank account or coming from proceeds of a sale then they they are NOT a cash buyer.....they are dependant on a loan.

If this was the case then anyone who needed a mortgage to buy a property could describe themselves as a cash buyer

Cardiffborn

Thank you for all your comments. I was told it was a cash buyer and reduced the price because of this as it would be a quick sale.

They waited for proof of funds and was told they had been received.

The EA now says her less experienced colleague got them and that if it was her she would have seen he wasn't a cash buyer - I told them I don't care about that its not THEM having to pay extra Council Tax and bills on the house when it should have been sold. I just get told that the housing market is bad at the moment, he is nearly there with this remortage. They don't seem to understand that I don't like being lied to. They just go on about excuses.

I asked for a copy of proof of funds but was told due to the data protection act they can't send them!

I will be reporting them to the NAEA regardless of the outcome good or bad, because I don't want someone else to have to go through this hassle.

Cardiffborn

The EA is blaming my solicitor for delays now! I give up with it all. I ring the solicitor who says she is very annoyed with EA for saying this. I am fed up of the whole thing. It has seriously put me off bothering to buy now. Why are estate agents such liars!

benood

MissMotivation wrote: »

Incorrect....a cash buyer is just that...someone who is buying the property with cash and not borrowing the funds from a lender!

If they don't have the cash readily available, in a bank account or coming from proceeds of a sale then they they are NOT a cash buyer.....they are dependant on a loan.

If this was the case then anyone who needed a mortgage to buy a property could describe themselves as a cash buyer

I don't know if the term "cash buyer" has any meaning in law, anyone?

In any case in my opinion the OP is wasting time and energy worrying about this hair splitting point when he/she could be concentrating on selling the house and keeping everyone sweet.

Of course everyone who needs a mortgage can't define themselves as a cash buyer, but plenty of people who have liquid assets such as gilts/shares which are near cash prefer to keep them invested and go through the relatively minor formalities of putting a mortgage in place (as opposed to having a house to sell) prior to making the purchase, true they aren't really cash buyers but they can show the evidence to get past the agent.

If the buyer is messing around and deliberately delaying that is a different thing altogether - if this is the case perhaps the OP should be thinking of remarketing.