Buyer trying to negotiate after exchange

pinkshoes

If you do finally complete, don't forget to leave a nice big dump in the toilet...

What a muppet your neighbour is! Make sure you detail all your costs whilst you are waiting. He will be responsible for any expenses incurred.

Please keep us posted on what happens.

Cakeguts

He has to complete at the contract price. If he didn't want to do that he should have withdrawn from the sale. Now is much too late.

anselld

elsien wrote: »

This is the thread that followed it through to the end.

https://forums.moneysavingexpert.com/discussion/1806123/vendors-pull-out-after-exchange-of-contract&highlight=buyer+failed+to+complete

It's a bit of a saga but if you read post 799 that gives an outcome of a 30k out of court settlement.

Not quite the same. That was vendor pulling out, this is buyer.
Legal action could potentially force a vendor to sell but if the buyer does not in fact have the means to complete then no amount of legal action is going to make it happen.

Norman_Castle

Grannyk wrote: »

He isn't poor (or so he likes to tell everyone) and our onward purchase is a much lower price. He's trying to buy other land and property in the area.

If he's aware of that he may be thinking you can afford to drop the price. Is there proof of the new lower valuation?

iammumtoone

how could this happen?


Isn't there checks to make sure the buyer has the funds available? Or is the case they had them and since spent them since exchange.


OP hopefully your buyer is just trying it on and once they realise what it will cost them will pay the money.

eddddy

Grannyk wrote: »

... we could stay and use the lovely sum that he's going to have to give us to help pay off the mortgage.

Are you sure you'll make a 'profit' on this?

You would only make a profit if your costs are less than £64.5k.

If your costs are greater than £64.5k, you'll just get your costs back.

As a minimum, your costs will include the 10% deposit you paid your seller, your EA fee, your removal costs, your legal costs.

You might have to pay your seller even more if their costs are greater than the 10% deposit. (e.g. if the price of their property falls before they manage to find another buyer.)

Grannyk

Thanks again everyone

a) he knows very well that we're buying at a much lower value so thinks we can afford to drop the price further - that was why we expected shenanigans at exchange but what sort of idiot keeps going onto completion? It's the sleazy tactic that con men try on vulnerable people- if he's trying it with us (his neighbours, two reasonably well educated people with jobs and financial stability) what tactics is he employing elsewhere?
b) there seems to be conflicting advice here, does he pay both the deposits in the chain + all expenses in the chain ?. This is what confuses me.

Thrugelmir

Grannyk wrote: »

The chain is only 3 and 5% is fairly normal with the contract stating 10% payable if defaulted. We're pretty experienced buyers/ sellers ourselves.

He isn't poor (or so he likes to tell everyone) and our onward purchase is a much lower price. He's trying to buy other land and property in the area.

Doesn't mean that you cannot be outsmarted. Perhaps he has sheltered his money in someway. Come across some very sharp operators over the years. Who know how to protect assets from creditors.

eddddy

Grannyk wrote: »

b) there seems to be conflicting advice here, does he pay both the deposits in the chain + all expenses in the chain ?. This is what confuses me.

No - your buyer doesn't have to pay all that.

In simple terms, it works like this:

• Your seller either claims their costs from you, or keeps your 10% deposit - whichever is the greater.

• And then you either claim your costs from your buyer, or keep the 10% deposit - whichever is greater. (But you don't get both.)

If you want a reference that confirms this...

So what damages can be claimed?

Damages will be all reasonably foreseeable losses naturally flowing from the failure to complete so as to put the "innocent" party in the position he would have been in had the purchase completed. The starting point is, therefore, the difference between the contract and market prices of the property ie, the aggrieved party's loss of profit, and other costs such as wasted legal fees or interest payable on a mortgage or bridging loan. The seller has to give credit for the deposit received. There can be no "profit" element in calculating damages.

Link: https://www.cms-lawnow.com/ealerts/2001/08/forfeiture-of-a-buyers-deposit-notice-to-complete-and-section-49-of-law-of-property-act-1925?cc_lang=en

iammumtoone

I think what grannyk is asking is can they pass the claim/cost on from the house(s) above them in the chain and add these onto their claim to their buyer?


I thought you could but I am no expert. I suppose the issue comes if you have the means to pay the costs above you but the buyer below you can't pay, so you stuck with the bill so to speak.