House exchange date agreed - but the buyer wants an another extension

diamondplus

Hi,

I'm currently selling a chain free empty property in England. The exchange date was agreed before the COVID-19 situation, however the buyer (a buy-to-let purchaser) has asked for the exchange date to be put back several times, and is now asking for another delay.

I can understand it from her point of view as after she's done whatever renovations they’ve planned, they’re going to have trouble getting renters in. Is it really that bad getting renters through estate agents at the moment?

On the other hand, I’m already taking financial losses from delays (e.g. the additional mortgage payments and utility bill payments on a property we don’t need etc.) but this would now escalate (e.g. unoccupied house insurance; unoccupied council tax).

What advise would you offer? (e.g. could I change my current household insurance to cover the empty house)

Both parties still want the deal to go through, and I am sympathetic to the buyer’s plight, but I’m second guessing the buyer’s thoughts trying not to scare them off.

And I don’t want to keep delaying indefinitely, or effectively take large financial hits myself so the buyer doesn’t lose any money.

What’s the worse case scenario for the buyer if they were to pull out?

Thanks in advance.

greatcrested

The exchange date was agreed before the COVID-19 situation,

No.It wasn't. A proposed date may have been discussed, but nothing is agreed until Exchange takes place.

if either of you pull out then you will each lose whatever you've spent so far and each have to fine another buyer/seller.

If you feel the buyer is messing you about, and/or isnot serious, start re-marketing the property. If they then agree to Exchange, great. If not, well you are slightly ahead in termsof finding a new, and more reliable, buyer.

GDB2222

The buyer is waiting to see whether prices drop, or indeed have already dropped. She may well ask for a reduction. 

There’s nothing you can do except readvertise the property.

diamondplus

Hi, thanks for your responses. 

I haven't ruled out giving them another extension, particular if the deal still goes through next time. This post was more of an "assessing my options" post -- both my options, but also the buyer's options in an attempt to judge how likely they are to pull out now or later. Perhaps they don't know at the moment, as they're also in unfamiliar territory.

Comms69

diamondplus said:

Hi,

I'm currently selling a chain free empty property in England. The exchange date was agreed before the COVID-19 situation, however the buyer (a buy-to-let purchaser) has asked for the exchange date to be put back several times, and is now asking for another delay.

I can understand it from her point of view as after she's done whatever renovations they’ve planned, they’re going to have trouble getting renters in. Is it really that bad getting renters through estate agents at the moment?

On the other hand, I’m already taking financial losses from delays (e.g. the additional mortgage payments and utility bill payments on a property we don’t need etc.) but this would now escalate (e.g. unoccupied house insurance; unoccupied council tax).

What advise would you offer? (e.g. could I change my current household insurance to cover the empty house)

Both parties still want the deal to go through, and I am sympathetic to the buyer’s plight, but I’m second guessing the buyer’s thoughts trying not to scare them off.

And I don’t want to keep delaying indefinitely, or effectively take large financial hits myself so the buyer doesn’t lose any money.

What’s the worse case scenario for the buyer if they were to pull out?

Thanks in advance.

Exchange of contracts i assume - seems obvious but double checking. If so then 'agreed' only the loose sense. 

If the buyer pulls out there is no additional loss. They lose what the have already paid or committed to paying (typically mortgage fees and solicitor fees). That's it.

I mean they could knock 10% of the price today. - i know i would.

steampowered

While you could remarket the property, the reality is that you are going to find it very difficult to get another buyer in this climate. Especially at pre-Covid 19 prices.

If the buyer pulls out they will lose any sunk costs - e.g. survey fees, cost of instructing their solicitors to do searches.

Semple

They're clearly messing you around until the housing market decides what it is doing. 
If I were in your shoes I'd demand that exchange is done on the latest agreed date else the property goes back on the market. 

MobileSaver

Semple said:

They're clearly messing you around until the housing market decides what it is doing. 
If I were in your shoes I'd demand that exchange is done on the latest agreed date else the property goes back on the market. 

+1

You are being played. I would politely tell the buyer that you are not prepared to continue incurring costs indefinitely and that if they are unable to Exchange on the agreed date you will reluctantly have to put the property back on the market.

Vestraun

They’re messing you about, just re market it find a committed buyer. 

diamondplus

Hi all,

If I had to guess, I would say that they're wating to see how the market reacts. But, as pointed out in one the replies above, there’s uncertainty about selling houses about now. The question is – where do I draw the line?

 

For arguments sake, if it costs me an extra £50 to delay for an extra few weeks, do I take the hit bearing in mind I’m more likely to get a sale?

 

Should I do the same if it’s £200? Or £500? Where’s the line?

 

On the other hand, after spending £50, and they still pull out, that’s extra money down the drain.

 

It’s all probability and gambling. No one knows for certain.

 

Side question: I’ll ask my solicitor this but if the deal was to fall through, would I have to pay the solicitor’s fees, or could I offset some (or all) of the fees against the eventual future sale?

anselld

As others have said there is no such thing as an "agreed exchange date" so it is not up to you to grant an extension.  It will happen when both sides are ready.

There are a great many reasons why one side may not be ready most of which have nothing to do with the current situation.  So have you asked the buyer what is the reason they are not ready?  Are they waiting for any further information, enquiries, etc.  They may actually have a good reason which you may or may not be able to address.