Is this right?

Garlicmush

Back in 2017 we accepted an offer on our house from a buyer who said they were cash buyers. We have an extremely large house, 8000 Sq ft, so not an easy house, in today's market to sell. Then early 2018, they told us they were getting a bridging loan, they had the survey done. 2 days before we were due to exchange and move, it became clear the buyers did not have a mortgage, nor did they have the funds. We had sold half our furniture and closed down my business for the move, therefore resulting in no income for two months. I paid for a survey on the property we were buying. The estate agents claim they can only ask if the buyer has the funds and can go on what they are told, my solicitor says some people have the mortgage checked after the survey and that it is down to the buyers solicitor to check if they have funds or not. Do I have a legitimate claim for compensation from someone here. Is there someone who is legally at fault here? My husband has had 2 strokes, 1 heart attack and has been diagnosed with terminal cancer early this year too. The stress has been horrendous, and I just feel somewhere that surely this is a case of complete negligence on my estate agents or my solicitors part. Anyone come across anything like this?

kingstreet

No-one in the process can obtain anything on which you can legally rely. An EA can "qualify" an offer but you will read many threads on here about buyers refusing to supply what agents say they need. In England & Wales, until contracts are exchanged either party can withdraw from a sale or purchase without liability.

Your solicitor has no responsibility for this.

Comms69

Garlicmush wrote: »

Back in 2017 we accepted an offer on our house from a buyer who said they were cash buyers. We have an extremely large house, 8000 Sq ft, so not an easy house, in today's market to sell. Then early 2018, they told us they were getting a bridging loan, they had the survey done. 2 days before we were due to exchange and move, it became clear the buyers did not have a mortgage, nor did they have the funds. We had sold half our furniture and closed down my business for the move, therefore resulting in no income for two months. I paid for a survey on the property we were buying. The estate agents claim they can only ask if the buyer has the funds and can go on what they are told, my solicitor says some people have the mortgage checked after the survey and that it is down to the buyers solicitor to check if they have funds or not. Do I have a legitimate claim for compensation from someone here. Is there someone who is legally at fault here? My husband has had 2 strokes, 1 heart attack and has been diagnosed with terminal cancer early this year too. The stress has been horrendous, and I just feel somewhere that surely this is a case of complete negligence on my estate agents or my solicitors part. Anyone come across anything like this?

No, you didn't exchange contracts yet.


legally or not, you are at fault. up until exchange of contracts, there is NO CONTRACT.


Sorry but you acted very prematurely and should have sought advice at the time

Pixie5740

Garlicmush wrote: »

Back in 2017 we accepted an offer on our house from a buyer who said they were cash buyers. We have an extremely large house, 8000 Sq ft, so not an easy house, in today's market to sell. Then early 2018, they told us they were getting a bridging loan, they had the survey done. 2 days before we were due to exchange and move, it became clear the buyers did not have a mortgage, nor did they have the funds. We had sold half our furniture and closed down my business for the move, therefore resulting in no income for two months. I paid for a survey on the property we were buying. The estate agents claim they can only ask if the buyer has the funds and can go on what they are told, my solicitor says some people have the mortgage checked after the survey and that it is down to the buyers solicitor to check if they have funds or not. Do I have a legitimate claim for compensation from someone here. Is there someone who is legally at fault here? My husband has had 2 strokes, 1 heart attack and has been diagnosed with terminal cancer early this year too. The stress has been horrendous, and I just feel somewhere that surely this is a case of complete negligence on my estate agents or my solicitors part. Anyone come across anything like this?

I don't think you can claim compensation from any party involved. Estate agents can only go on what the buyer tells them and your solicitor is correct that it is down to the buyer's solicitor to check their funds not him. Until you've exchanged contracts all bets are off so it appears you have been a little premature with winding down your business and leaving yourself without an income.

Are you still marketing the property? If not get it back on the market pronto. If yes, have you received any other offers?

sal_III

As part of the process leading to the exchange the solicitors are checking for proof of funds, if only to cover themselves for AML purposes. For all we know the discovery the buyer has no funds is what triggered the collapse of the deal.

This is a prime example of why you shouldn't make serious commitments like selling furniture and quitting your job before exchange.

edit: Back in early 2018 when the "cash buyer" told you he needs a loan, this should have sounded the alarm bell in your head that he is not a cash buyer. At which point you should have re-marketed the property and halted any life-changing moves on your part.

Smodlet

I think you already know the answer, don't you, OP? Unfortunately, until you have exchanged, you have no legal redress whatsoever for a lost sale.

It is unfortunate it has taken so long to realise your "buyer" is not in any position to buy but you were at liberty to continue to market your property until exchange had happened. Most do not as it is considered bad form, rightly so but you had the legal right to do so.

No-one forced you to sell your furniture or to suspend your business; that was entirely your choice. I think all you can do is learn from this and, perhaps, hope your story saves someone else from the situation you now find yourself in. Sorry for being the bearer of bad news and for your husband's poor health but it is not relevant to the legal position, I'm afraid.

I can only suggest you re-market the property as soon as possible if you need to sell. The little darlings are back at school, the holiday season is over, the market should pick up around now. Good luck to you both.

hazyjo

Sorry to hear about your husband.


It's all been said above - no chance of claim/blame. One in three sales (ish) falls through. It's very common.


For the benefit of anyone else reading in a similar boat who needs to tie up a lot of loose ends before selling, it would have been wise to ask for as long a period as poss between exchange and completion from the outset, then get all your stuff sorted after exchange.

davidmcn

Even if an offer is "qualified" by having bank balances or mortgage offers checked, that doesn't necessarily mean that the buyer's position won't change the next day or that they just change their mind for other reasons. Exchange is the point at which both parties are actually committed.

And if everything really has been dragging on for the best part of a year, with a "cash" offer turning into something which needed a bridging loan, surely some suspicion ought to have set in?