Pulling out of purchase questions.

Troy_af

Hello.

So unfortunately it is looking very likely that I will be pulling out of my new home purchase soon. I am 5 month into the conveyancing process now and we are probably quite close to being ready to exchange contracts. Unfortunately certain problems have only just came to light at this stage. My first question is how much does it usually cost in solicitor fees when you pull out and is it going to cost me a lot more considering how far along in the process I am? I’m worried here that I am going to end up having to pay almost the full bill despite the sale not going ahead.

This is the first time I have ever been in this position and my next concern is that my buyer will also pull out, as they are probably going to be facing even more delays waiting for me to find another property to move into. Is this usually what ends up happening in this situation, ie, the entire chain falls through? Or is it more likely that they would usually hold on considering they will be in the same situation having time and solicitor fees invested already?

Thanks for any advice.

 

Flugelhorn

re your fees to the solicitor - yes it can cost quite a bit at this stage, sometimes as much as if the whole process has gone through as they charge on an hourly basis

re your buyers - they may or may not wait, suspect they will be pretty fed up and start looking  elsewhere even if they  don't pull out of the sale straight away

TBG01

What did your retainer, terms of business or whatever they call it say regarding abortive fees?

K_S

@troy_af Sol fees - depends on what you signed up to. If it's a no-completion no-fee solicitor (mostly the larger firms, and the exact terms might differ across solicitors), then it'll only be the disbursements (searches, etc.). Some solicitors/panels even offer second search insurance which covers the cost of the next property's standard searches.

But if it's standard t&Cs it's likely to be the bulk of legal fees given that you've come this far.

youth_leader

Could you move in with family, or into rented, to keep your buyer? 

jimbog

Are you able to tell us what problems you've encountered? Folks on here may be able to help

Troy_af

TBG01 said:

What did your retainer, terms of business or whatever they call it say regarding abortive fees?

I'll have to have another read over the contract because it was so long ago, but I do remember it saying no sale no legal fee. However on the cost estimate invoice the "legal fee" is for around £600.. I take it this is probably the only amount I won't have to pay and I'll have to pay all other costs.

babyblade41

Can you say what problems have come to light, it maybe not as bad as you think .Can't see what it could be so far into the process as surveys had been done & pondered over.

Thrugelmir

If your buyer has been waiting 5 months. Dont expect them to hang around. Like you they'll consider all options. 

eddddy

Troy_af said:

Is this usually what ends up happening in this situation, ie, the entire chain falls through? Or is it more likely that they would usually hold on considering they will be in the same situation having time and solicitor fees invested already?

I'm sure your buyers will review their different options.

I guess they might decide that if they 'dump' you and find another property, they might not complete the purchase any quicker - because a chain would need to form above that property.  (Unless they decide to only look at 'chain-free' properties.)

But sometimes buyers walk-away because...

• They lose trust in the seller - they're not convinced that their seller is serious about finding a new place
• They're angry with the seller about the delay - so they walk-away to 'punish' the seller

So it's worth trying to maintain a good relationship with your buyer. It might help reduce the risk of them walking away.

simon_or

Troy_af said:

TBG01 said:

What did your retainer, terms of business or whatever they call it say regarding abortive fees?

I'll have to have another read over the contract because it was so long ago, but I do remember it saying no sale no legal fee. However on the cost estimate invoice the "legal fee" is for around £600.. I take it this is probably the only amount I won't have to pay and I'll have to pay all other costs.

Aren't all conveyancers no sale no fee? That's always been the case with the ones I've engaged in the past. Given that more than a third of purchases in England fall through, it makes sense.