Buyer delaying indefinitely

chareth_cutestory

I accepted an offer for my flat in September 2021, right after I moved in with my partner. He's a cash buyer who wanted a quick sale so I expected 8-12 weeks, but 5 months on and he's ignoring all attempts at contact by either the agents or his solicitors.

The latest I've been told is that he needs to meet his solicitor to provide proof of ID and funds, which should obviously have been done at the very beginning, but regardless, I've been waiting at least a month for this and he's just not doing a thing.

What are my options? So far this has cost me thousands in paying bills on two properties. I've paid out for management and landlord enquiries which I'm not sure will be valid if I resell, but I told the agents that he has 2 weeks to complete or it's going back on the market.

Is it worth issuing a notice to complete? Is there any civil route I can take to claim back costs, because there's absolutely no reason that a cash buyer should be delaying like this. It feels like he's waiting for me to pull out but if that's his plan can I take this to small claims court?

MaryNB

I presume you haven't exchanged contracts yet? If so your only options are to find a new buyer now, give him an ultimatum (exchange in a month or goes back on the market) or wait it out. 

No contract, no legal obligation on him at all. You can't claim for anything without exchange. 

pinkshoes

All you can do is give him 7 days to exchange otherwise the property goes back on the market.

I'm amazed you have waited this long for a cash buyer. We sold my grandad's property to a cash buyer who viewed it on a Friday, then completed 4 weeks later!

caprikid1

I still don't understand why so much weight is put on a cash buyers, they are often worse not better buyers.

Exodi

Unfortunately this is one of the disadvantages of the UK system - where property is sold 'subject to contract' and the buyer has no obligation to buy the property until the very end.

My parents recently told me they sold their house in France where it is apparently completely different (this is anecdotal - I have no way to verify how accurate what they told me is). They tell me that if a buyer makes an offer and the seller accepts it (even verbally or in a casual text or something), that is considered a binding contract and they are obliged to complete that purchase. If someone later offers the seller boatloads more money for the house, the seller can't change his mind - if the buyer has a change of heart, he can't just pull out half way through.

I can see some benefits to the french system...

princeofpounds

Exodi said:

Unfortunately this is one of the disadvantages of the UK system - where property is sold 'subject to contract' and the buyer has no obligation to buy the property until the very end.

My parents recently told me they sold their house in France where it is apparently completely different (this is anecdotal - I have no way to verify how accurate what they told me is). They tell me that if a buyer makes an offer and the seller accepts it (even verbally or in a casual text or something), that is considered a binding contract and they are obliged to complete that purchase. If someone later offers the seller boatloads more money for the house, the seller can't change his mind - if the buyer has a change of heart, he can't just pull out half way through.

I can see some benefits to the french system...

I don't know the detail of the French system, but the Scottish system doesn't sound too different to your description.

There are lots of ways the system could be sped up in England, but one of the biggest changes would be for the sellers to have the duty of putting together a sales pack with all the necessary legal (and sometimes survey) information. That is principally how the system is made faster and offers more binding in most countries. The English system is not actually as different as people like to make out in terms of its underlying principles, the issue is more one of organisation.

The main thing that happens between SSTC and exchange in England is buyer due diligence - obtaining and interpreting title and searches, the sellers' property information form, the survey etc. and then the enquiries that arise from that. It would be ridiculous to expect buyers to commit to binding exchange without having performed due diligence investigations. The results of that due diligence often lead to renegotiation, as it should.

There was of course an effort to change this with the introduction of Home Information Packs, which operated from 2007 to 2010, when they were scrapped. The only thing that stayed was the EPC, which frankly was one of the least useful pieces of paperwork in the whole thing.

https://en.wikipedia.org/wiki/Home_Information_Pack

It's very sad that the whole thing was mishandled. There was lot of lobbying against it from vested interests in the property industry, particularly the surveyors, conveyancers and estate agents. And because the system was badly designed (it didn't cover many of the issues that it would need to cover to actually become a workable system that buyers could rely on, so couldn't achieve the end goal in the form it was introduced) it was used as an excuse to scrap it, rather than change it into something that would work.

Some of the criticisms of the system were also economically illiterate (sellers complaining about it raising the cost of selling, not understanding that would be largely compensated by buying being cheaper, raising buyer budgets).

Since then, the political momentum totally disappeared to do anything about this. 

Oh - as for the OP's situation - given the buyer 7 days to exchange or get another buyer. I have no idea why you waited so long given they have basically done nothing to progress the purchase. ID and proof of funds is step ONE.

Exodi

princeofpounds said:

There are lots of ways the system could be sped up in England, but one of the biggest changes would be for the sellers to have the duty of putting together a sales pack with all the necessary legal (and sometimes survey) information. That is principally how the system is made faster and offers more binding in most countries. The English system is not actually as different as people like to make out in terms of its underlying principles, the issue is more one of organisation.

Agreed, and it's something I've personally found very odd in the UK-

How potentially multiple buyers have to each individually pay for seperate surveys and searches on the same property at the same time. Survey throws up that the roof is about to fall down? Search thrown up that the house isn't actually connected to mains sewers and the seller 'forgot to mention'? Well hard luck, you're now out of pocket £1000 to something entirely outside your control, and a seller who has no obligation whatsoever to compensate you.

There was never any doubt that HIP should be introduced (albeit in a better way) and the seller should be required to conduct the surveys and searches (by independant bodies), providing these to the estate agent as a condition of sale.

The cost argument is disingeneous in my opinion, add £1k to the selling price.

If the survey throws up that the roof is about to fall down and you genuinely didn't realise - it gives you the option to act on it. Don't let some poor stranger have to pay and find out for you.

As you said, it would also speed things up - buying/selling houses doesn't need to take months and months and months.

babyblade41

Exodi said:

princeofpounds said:

There are lots of ways the system could be sped up in England, but one of the biggest changes would be for the sellers to have the duty of putting together a sales pack with all the necessary legal (and sometimes survey) information. That is principally how the system is made faster and offers more binding in most countries. The English system is not actually as different as people like to make out in terms of its underlying principles, the issue is more one of organisation.

Agreed, and it's something I've personally found very odd in the UK-

How potentially multiple buyers have to each individually pay for seperate surveys and searches on the same property at the same time. Survey throws up that the roof is about to fall down? Search thrown up that the house isn't actually connected to mains sewers and the seller 'forgot to mention'? Well hard luck, you're now out of pocket £1000 to something entirely outside your control, and a seller who has no obligation whatsoever to compensate you.

There was never any doubt that HIP should be introduced (albeit in a better way) and the seller should be required to conduct the surveys and searches (by independant bodies), providing these to the estate agent as a condition of sale.

The cost argument is disingeneous in my opinion, add £1k to the selling price.

If the survey throws up that the roof is about to fall down and you genuinely didn't realise - it gives you the option to act on it. Don't let some poor stranger have to pay and find out for you.

As you said, it would also speed things up - buying/selling houses doesn't need to take months and months and months.

It's not just surveys that hold things up though.  I don't have surveys and my buyer hasn't had one and we are still 12 weeks in without exchanging .

I think a lot of the problems in our system is that too many online conveyance factories cause so many problems and delays .

OP just re-market , if they are only starting to confirm ID you are a very long way off 

aoleks

that doesn't sound like a serious buyer, I wouldn't wait a second longer. put the house back on the market, only remove it if they exchange. until then, free for all...

HotPantsCruiser

Exodi said:

Unfortunately this is one of the disadvantages of the UK system - where property is sold 'subject to contract' and the buyer has no obligation to buy the property until the very end.

My parents recently told me they sold their house in France where it is apparently completely different (this is anecdotal - I have no way to verify how accurate what they told me is). They tell me that if a buyer makes an offer and the seller accepts it (even verbally or in a casual text or something), that is considered a binding contract and they are obliged to complete that purchase. If someone later offers the seller boatloads more money for the house, the seller can't change his mind - if the buyer has a change of heart, he can't just pull out half way through.

I can see some benefits to the french system...

And lots of disadvantages.....however I don`t think what you described is a binding system, maybe points that could be brought up if a legal challenge is made?

Exodi

HotPantsCruiser said:

And lots of disadvantages.....however I don`t think what you described is a binding system, maybe points that could be brought up if a legal challenge is made?

I believe it is binding - they tell me (again anecdotally), they they are like America in the sense that they are suing-crazy and that one of their English friends ended up getting sued because he accepted an offer by text, then tried to proceed with buyer who made a higher offer shortly after. In the end he was forced into selling to the first buyer at the lower offer.