Buyer pulling out!

Dally78

Hi All,

First post here so be gentle😉

I’m posting for advice,

my mother in law has exchanged contracts on her house.
The buyer asked her to be out of the house over 5 weeks ago saying they wanted to finish the sale (this did come from a solicitor), but a week later the solicitor contacted her saying they are having problems with their ISA, week later they said it’s all sorted and shall be proceeding (in this time my mother in law has moved in with us while her new house sale goes through), but yesterday she has received a email stating that the buyer is now having problems with their mortgage and could possibly pull out.

My question is....what right has she got to claim deposit fees, storage fees, solicitors fees, etc etc and how long is she legally obliged to wait for before she claims they are breaking the contract?

davidmcn

When was the completion date? 5 weeks ago? If the buyer is already in default then MIL should be seeking advice from her solicitor anyway.

Mutton_Geoff

Dally78 wrote: »

Hi All,

First post here so be gentle😉

I’m posting for advice,

my mother in law has exchanged contracts on her house.
The buyer asked her to be out of the house over 5 weeks ago saying they wanted to finish the sale (this did come from a solicitor), but a week later the solicitor contacted her saying they are having problems with their ISA, week later they said it’s all sorted and shall be proceeding (in this time my mother in law has moved in with us while her new house sale goes through), but yesterday she has received a email stating that the buyer is now having problems with their mortgage and could possibly pull out.

My question is....what right has she got to claim deposit fees, storage fees, solicitors fees, etc etc and how long is she legally obliged to wait for before she claims they are breaking the contract?

Are you sure the contract has been exchanged, not just signed by both parties? If it has, then it will have a completion date which the purchaser is obliged to meet. I would say anything that happens after completion has passed is chargeable to the person breaking the contract.


Surely the solicitor is in the best position to answer this, not a bunch of strangers on an internet forum?

Dally78

Mutton_Geoff wrote: »

Are you sure the contract has been exchanged, not just signed by both parties? If it has, then it will have a completion date which the purchaser is obliged to meet. I would say anything that happens after completion has passed is chargeable to the person breaking the contract.


Surely the solicitor is in the best position to answer this, not a bunch of strangers on an internet forum?

She is reluctant to ”cause trouble” as she is afraid of losing the sale, she does not press on the solicitor for information.

I’m asking as I will push her to say things and bring up points to her solicitor, the more advice I have and understanding the more I can push her to kick up a fuss.

Gmizzle

Hi


Important to clairfy - Have your solicitor and the buyer's solicitor actually exchanged contracts, i.e when the deal becomes legally binding? If so this would have been done with you (mother's) knowledge and permission and a completion date would have been set. That would all be pretty definite. Also there would be deposit which you could be entitled to receive if the buyers do not complete. Again the amount of this deposit would have been agreed pre-exchange and in the terms of the contract


If not, and they are having financial problems and pulling out pre-exchange, then I'm afraid there isn't much you can do other than look for another buyer. Your mother would not be entitled to claim any costs.


Hope this clarifies.

AdrianC

My money's on contracts not having been exchanged yet, too.

need_an_answer

Has exchange definitely taken place?

Has a date been agreed for completion?

If exchange has taken place then there is a much stronger case if the buyers pull out,but sadly not much of a case if any if the crucial exchange hasn't happened,

Mutton_Geoff

Dally78 wrote: »

She is reluctant to ”cause trouble” as she is afraid of losing the sale, she does not press on the solicitor for information.

I’m asking as I will push her to say things and bring up points to her solicitor, the more advice I have and understanding the more I can push her to kick up a fuss.

But her solicitor works for her. I can't see how asking them relevant questions on the progress/process of selling her house is in any way "causing trouble". I can appreciate older people can think this way but she should just prepare a list of questions and fire away.

Dally78

need_an_answer wrote: »

Has exchange definitely taken place?

Has a date been agreed for completion?

If exchange has taken place then there is a much stronger case if the buyers pull out,but sadly not much of a case if any if the crucial exchange hasn't happened,

As far as I’m aware the exchange has taken place (as she put it “the paper work I needed to sign with a witness”)
I’m now contacting the solicitor and asking About exchange and possible legal action.

Lokolo

Dally78 wrote: »

As far as I’m aware the exchange has taken place (as she put it “the paper work I needed to sign with a witness”)
I’m now contacting the solicitor and asking About exchange and possible legal action.

That doesn't mean shes exchanged. It just means shes signed the papers ready to exchange.

She needs to call her conveyancer (not you, unless you have authorisation) and confirm whether exchange has taken place or not. Which is most probably not.

In this case, she is entitled to absolutely nothing.

Dally78

Mutton_Geoff wrote: »

But her solicitor works for her. I can't see how asking them relevant questions on the progress/process of selling her house is in any way "causing trouble". I can appreciate older people can think this way but she should just prepare a list of questions and fire away.

She is an older person and as I’m the son-law she does not really want me interfering but my wife is going to approach her and I’ll give advice to her.