Advice required after seller pulled out of sale

Bendy_House

What liability is there - on the buyer and seller - should one pull out after exchange of contracts?

Thanks.

caprikid1

Bendy_House said:

What liability is there - on the buyer and seller - should one pull out after exchange of contracts?

Thanks.

Considerable I believe, not a place you really want to be in if avoidable, if you are in that situation I suggest you start a new thread.

MEM62

My parents recently sold their house - to the fourth purchaser.  The previous three all pulled out for various reasons; one could not get a mortgage, another felt their job was at risk etc...  In each case mum and dad run up a bill for legal fees up to the point where the sale was aborted so the seller faces similar risks in this respect to the purchaser.    

saajan_12

All well and good but you have to think about the practicalities before throwing out demands and petitions. 

* how do you define 'pulling out'? If I changed my mind, I could just stall, keep changing dates, not respond to solicitors etc for months / years until you get tired and technically pull out, to avoid paying your costs and even get my costs reimbursed. 
* what if a property was grossly misadvertised, or had significant defects from a survey which I don't previously disclose - then as a buyer are you willing to pay the seller's costs? Who decides whats 'signficant'?
* what if a buyer's funds and borrowing power were grossly incorrect (they borrowed £ from a friend for 1 month to show the EA), in reality they're still stalling to save up or wait for something to liquidate - then as a seller are you willing to pay the buyers costs or wait for 2 years? 

canaldumidi

saajan_12 said:

All well and good but you have to think about the practicalities before throwing out demands and petitions. 

* how do you define 'pulling out'? If I changed my mind, I could just stall, keep changing dates, not respond to solicitors etc for months / years until you get tired and technically pull out, to avoid paying your costs and even get my costs reimbursed. 
* what if a property was grossly misadvertised, or had significant defects from a survey which I don't previously disclose - then as a buyer are you willing to pay the seller's costs? Who decides whats 'signficant'?
* what if a buyer's funds and borrowing power were grossly incorrect (they borrowed £ from a friend for 1 month to show the EA), in reality they're still stalling to save up or wait for something to liquidate - then as a seller are you willing to pay the buyers costs or wait for 2 years? 

Which is exactly why there is a period of time before any contract becomes binding during which each side does their due diligence (OK primarily but not exclusively the buyer) does their due diligence and can change their mind.

This has been looked at countless times in the past, by the Law Society, government, other interested bodies etc. The inroduction and subsequent abandonment of Home Information Packs was an atempt to speed up and facilitate the process. It faild.

So a petition is pointless.

As for asking the solicitor for advice re claiming costs off the seller, all that will do is bump up the solicitor's final bill which will probably be based on how many hours they have so far devoted to you as a client.....

TripleH

Markod76, what you say makes sense, the problem is that there is a lot more work involved in changing it that you might think. This could mean a severe overhaul of contract law and in England the law is one of the most conservative in the world (my understanding as a non-expert on law).

Whatever the situation, there will always need to be a 'point of no return' when both sides cease negotiations and officially agree a set amount. The system as it is works to both sides advantages and disadvantages (hopefully equally) by amending you run the risk of changes being to the detriment of one party over another, which would then result in possible legal challenges down the line.

markod76

TheJP said:

markod76 said:

The govt needs to act on this, the estate agent too should caution the seller. I have now lost quite a lot of money and missed out on other properties on the market as i had stopped searching.   write to @chrispincher MP for UK  Housing highlighting this  issue. Its unfair on buyers most especially 1st time buyers who have scrapped together savings to buy their 1st property and loosing out because a buyer changed their mind.   This will continue until there is a compensation involved which both buyer and seller would consider before transaction. 

It works both ways. If a buyer pulls out then seller will likely have costs from their onward purchase inc EA fees etc. 

That's correct  TheJP,   This will also ensure both parties are sure before entering the contract. The amount of times i have driven to view a property only  for the vendor now to tell me the seller has changed their mind, thank heavens for virtual tour now. saves the hassle. Btw i have written to the housing Minister. not hopeful but its worth a try

Thrugelmir

TripleH said:

This could mean a severe overhaul of contract law and in England the law is one of the most conservative in the world (my understanding as a non-expert on law).

Centuries old, renowned and used as a reference point throughout the world. 

TripleH

Yes, the basis seems fine, the problem (or my understanding) is that there is less 'room for interpretation' with scenarios that occur.

French and English law fundamentals do 'seem' to have been a useful export from both countries.

markod76

Seller just pulled out, 2nd time this has happened to me.  Loss of money, time, energy , effort and missing out on other potential properties.  If i am not why sellers would advertise house for sale not fully sure  what they want. My seller was suppose to move into home assisted and changed her mind. Drove past the house one wknd to show my boy , only to see the fence had just had a fresh coat of paint, i thought that was weird but didn't  give it much thought. Asked my mate to drive down as he leaves close by, told me the STC sign is no longer there. Hmmmm.. thought maybe the vendor don't want  neighbours to know. still hopefully and prayed that it doesn't fall through. Got the dreaded message today  that vendor pulled out due to personal reasons.  I don't think this is fair on serious buyers. I am left with solicitors bill whilst the vendor settles the estate agent and no compensation for me.  The Govt really needs to change the law. 10% fine for either buyer or seller.