Buyer wants me to pay the stamp duty if we run over the deadline

prestog

I'm selling my property at the moment. We're almost there but I'm missing one document related to building regulations. 

There are currently searches in with the local council but they're not having much luck finding it. Basically we need to get this document so the sale can go ahead - until then, it's at a standstill. 

They seller is saying that if it runs over the stamp duty deadline, he'll ask that I pay the stamp duty or he'll pull out. Just wondering where I stand on this as technically it's my end that is holding up the sale due to this missing document. 

teachfast

He can do what he is saying, but that doesn't mean he will. Lots of implications in pulling out. As others have said in similar cases: in the end when you remove the blame and the emotion it's a business transaction. It either makes sense or does not and that's for you each to decide. 

user1977

Assuming you haven't exchanged contracts then it's all up for negotiation, so you can stand exactly where you are at the moment. It's (presumably) the buyer's demand for this document which is holding things up...

MaryNB

You're under no obligation to agree but if he pulls out you lose your sale, possible an onward purchase (if applicable) and costs incurred to date. 

He loses the same and he definitely won't meet the deadline on another property.

Did he indicate that going past the SDLT deadline was a deal breaker for him? Not that it matters too much. Sometimes these things take longer than expected. 

teachfast

MaryNB said:

You're under no obligation to agree but if he pulls out you lose your sale, possible an onward purchase (if applicable) and costs incurred to date. 

He loses the same and he definitely won't meet the deadline on another property.

Did he indicate that going past the SDLT deadline was a deal breaker for him? Not that it matters too much. Sometimes these things take longer than expected. 

"They seller is saying that if it runs over the stamp duty deadline, he'll ask that I pay the stamp duty or he'll pull out."

Sounds like he indicated it is a deal-breaker. Could still be a bluff though.

prestog

Yes, the buyer said quite a while ago that he wants to get it done well before the stamp duty deadline. 

stressedout45

prestog said:

Yes, the buyer said quite a while ago that he wants to get it done well before the stamp duty deadline. 

Oh, don’t we all! Tell him to stop throwing his dummy out the pram.  

MaryNB

teachfast said:

MaryNB said:

You're under no obligation to agree but if he pulls out you lose your sale, possible an onward purchase (if applicable) and costs incurred to date. 

He loses the same and he definitely won't meet the deadline on another property.

Did he indicate that going past the SDLT deadline was a deal breaker for him? Not that it matters too much. Sometimes these things take longer than expected. 

"They seller is saying that if it runs over the stamp duty deadline, he'll ask that I pay the stamp duty or he'll pull out."

Sounds like he indicated it is a deal-breaker. Could still be a bluff though.

What I meant to query was if the buyer was clear about this early on:

prestog said:

Yes, the buyer said quite a while ago that he wants to get it done well before the stamp duty deadline. 

Still no obligation to pay up but I was just wondering if he sprung this last minute, early on, or even made it a condition of his offer. You just have to decide if it's worth losing the sale over or if you can negotiate something. My colleague offered on a house on the condition that if it went beyond the SDLT deadline he'd reduce his offer by 50% of the SDLT he owed which the seller was ok with, so at least they were forewarned. Your buyer may genuinely not have the funds to cover SDLT, or maybe just wasn't expecting to have to pay it and doesn't want to. 

There's not really a right or wrong answer, just depends on your preferred outcome and what you're willing to sacrifice. 

user1977

What exactly is this "document related to building regulations" anyway? I suspect it's not really all that important (certainly not thousands-of-pounds-important).

GDB2222

stressedout45 said:

prestog said:

Yes, the buyer said quite a while ago that he wants to get it done well before the stamp duty deadline. 

Oh, don’t we all! Tell him to stop throwing his dummy out the pram.  

It depends how much is involved, and how crucial it is to the finances. For some buyers, it may mean the difference between having enough for the deposit, or not. For others, it may mean a lot more interest for years to come. 

Personally, I'd be worried that prices will drop after the SDLT deadline. So, why pay an inflated price AND the higher SDLT? 

lookstraightahead

What and how old are the building regs?