Have exchanged but think buyer may pull out

pandapeepers

Hi,
We accepted an offer in August from a buyer that we were told was a property developer used to buying and selling. Basically we ended up being messed about with him changing solicitors then changing mortgage companies which meant having 2 valuations done etc. Eventually we got sick of it and put it back on the market in Dec but if he came up with the money he could still buy. He said he was could exchange but wouldn't be able to complete until 28th Feb. We agreed as we hadn't had any other offers and exchanged late Dec.
We've just had a phone call from our solicitors saying they had a one sentence email asking to change to complete on 28th March.
We are absolutely sick of having this over our heads and feel we have been messed around enough so have said no.
The solicitor has confirmed that if it falls through we will keep the 10% deposit.
I'm waiting on the estate agent to ring me back so I can discuss it with her but I wondered if we still have to pay the estate agent fees if the buyer doesn't complete?
Also if we do would we be entitled to have him pay the estate agent fees?
Also is there any other problems that could arise from this we haven't thought of?
Absolutely dreading have to put it back on the market plus am worried house prices in London will have dropped and will drop further.
We are not in a chain as the house is empty, but if we don't complete a sale by August we will lose another £10k on stamp duty from having bought a second home that were expecting to have claimed back by now when this house had sold.
Thanks for any advice, though I guess it's really not in our hands.

hazyjo

What does your EA contract say about paying their fees? Due upon completion? Or does it mention exchange?

Alfrescodave

Has your solicitor confirmed that you have actually exchanged contracts or have you just signed exchange contract in preparation.?

Bossypants

Alfrescodave wrote: »

Has your solicitor confirmed that you have actually exchanged contracts or have you just signed exchange contract in preparation.?

Considering that the solicitor has confirmed they will keep the 10% deposit if completion doesn't happen, I'm assuming exchange has taken place.

davidmcn

Bossypants wrote: »

Considering that the solicitor has confirmed they will keep the 10% deposit if completion doesn't happen, I'm assuming exchange has taken place.

The solicitor is probably also best-placed to advise the OP on any other remedies they might have under the contract, if they hadn't properly explained those before exchange happened.

Voyager2002

There is no reason for you to agree to a change in completion date: presumably the contract specifies the date.



If you face any costs from the buyer's misbehavour (such as an additional stamp duty charge) then that is the buyer's problem. Your solicitor will be delighted to help.

eddddy

pandapeepers wrote: »

I'm waiting on the estate agent to ring me back so I can discuss it with her but I wondered if we still have to pay the estate agent fees if the buyer doesn't complete?

Check your EA contract... but it's usual that fees become payable on exchange of contracts, and are must be paid even if the sale doesn't complete.

(Because you can normally sue a buyer who fails to complete for damages - including EA fees.)

pandapeepers wrote: »

Absolutely dreading have to put it back on the market plus am worried house prices in London will have dropped and will drop further.

If prices drop and you have to sell more cheaply, you can potentially sue your defaulting buyer to cover your losses.

(But that can only work if your buyer has money/assets to cover your losses.)

pandapeepers wrote: »

We are not in a chain as the house is empty, but if we don't complete a sale by August we will lose another £10k on stamp duty

Again, that sounds like it could be a consequential loss that you can claim from the buyer.

So if the buyer does fail to complete (i.e. breach the contract), you might need to find a litigation solicitor - as opposed to your conveyancing solicitor.

babyblade41

This developer may be waiting on funds or could be going south !!! if he is a company then not sure how the comps route would work .

I would't be waiting for anyone to call I would be camping at the EA's telling them completion date was agreed on exchange and isn't changing

Smi1er

By saying no to the change of completion date (and I would have to) then I'm going to take an educated guess that your buyer will complete.

bigstevex

As above, say no, you've put up with enough

chunkytfg

Say no, he pulls out you keep 10% deposit and maybe additional costs.

Say yes, he realises he can drag things out with you and then keeps pushing the date back and back until he finally sells his last developed property.

Call his bluff as realistically you're in the driving seat and they are hoping you don't realise that!