Offering on a house with a break the chain request

Millsandovis

I had an offer accepted on a property around 9 weeks ago and there’s been zero progress on a Land Registry issue that isn’t even related to my purchase. I’ve reached the point where I’ve now decided to pull out as there seems to be something amiss going on and I want to stay well clear of it. I’ve also found another house in a similar area that suits my needs better so it’s a no brainer pulling out at this point as to not get burnt later on down the line & jeopardise my chain of 2. I accepted an offer on my place in early May and the survey is booked for next week with a mortgage offer in place etc. The bottom of the chain is a flat and there’s been radio silence on that front when ive asked for updates (the same sales progressor is handling my & my buyer’s sales) 

The house I’m going to offer on (had one knocked back & have heard their acceptable price of 490k) is not chain free and the buyers haven’t found anywhere to live yet. They had 2 places lined up but lost both due to having no buyer on their property. 

I’ve mentioned to the estate agents about being a way along in my sale and want to move as soon as possible. The estate agent has said the sellers would be prepared to break the chain & move into rented accommodation if they received an acceptable offer which obviously would be great. 

Now the house is listed for between 485k & 500k and my initial offer was 480k due to how long the house had been on the market (4 months) and that they’d had no offers in that time. They also have some issues with a converted garage that is a ‘store room’ they are using as a dining room that doesn’t have the required permission. This doesn’t bother me as I’ll be a cash buyer & will convert it back into a garage & renovate the house anyway. 

The sellers came back and said they had listed it for 500k originally so find it hard to imagine accepting 480k. The estate agent did explain to them that they wouldn’t get 500k but I totally understand why they think this. I said to the estate agent that I would be prepared to offer 485k but say I will offer them the desired 490k on the stipulation that they break the chain once everything is ready. 

Now my question is, is this actually enforceable if I make an offer with the stipulation included or is it just a ‘gentleman’s agreement’? Maybe it’s the natural pessimist in me but I can’t see them dealing with all the problems that come with trying to find a rental property etc with a minimum tenancy just to make my life easier but then if they’ve had no offers and want to sell then it would make sense. 

If needed I can actually wait a bit longer due to being able to move into my partner’s flat but didn’t want to do this due to ease of doing the one move (ironic I know!). I am prepared to wait if needed and would also offer to break my chain with my buyers if the sellers decided to form a chain but just wondering if I can make an offer of 490 with the break chain clause so they get their desired price but say the offer will be 485 if they don’t. Is this a thing and can I do it at this stage with my offer? Or does it need to be through my solicitor and officially draw  up and agreed? 

Obviously there would be nothing stopping them taking ages to respond to questions etc to cause delays or pulling out but I do actually really like this house and want it. I would be prepared to wait for them but after nearly 10 weeks of delays (that aren’t their fault!) I’m looking to move as soon as possible. 

Cheers 

BarelySentientAI

Not enforceable in practice.

You can make that offer, but then you would still need to ask to revise the price down if you thought it was taking too long, at which point they could say yes or no.

Your 'recourse' to them not standing by the offer to break the chain is to not purchase - as it is in most transactions - which doesn't really seem like what you want.

Millsandovis

BarelySentientAI said:

Not enforceable in practice.

You can make that offer, but then you would still need to ask to revise the price down if you thought it was taking too long, at which point they could say yes or no.

Your 'recourse' to them not standing by the offer to break the chain is to not purchase - as it is in most transactions - which doesn't really seem like what you want.

Thank you, thought this was the case. I’m happy to wait for the house if needed as I can move in with partner and wait if my buyers get antsy but hope the mention of it now could get them moving quicker. 

Don’t think there’s any answer that gets me moved quicker other than building a time machine and offering on this house instead 9 weeks ago. 

BarelySentientAI

Well, you could make them sign a legal contract as a condition of accepting the offer, but drawing up the contract and persuading them to sign is unlikely to be fast (or possible) and then what would happen if they just said no in the end and refused to sell at the lower price?  It would probably be exactly the same situation as it would be without this extra legal document.

Mentioning it up front is certainly sensible, and keeping that expectation (and the reminder of the gentleman's agreement) fresh in their mind throughout the process will help - the EA won't want to lose the sale so would probably be on your side with it.

As always, though, you'd have to be willing to walk away for any of it to have teeth.

Would something the other way around work?  Offering 485 for the house plus a contribution towards storage/rent if they did break the chain?  Then it seems like they're getting something extra for being fast, rather than being punished for being slow?

Millsandovis

BarelySentientAI said:

Would something the other way around work?  Offering 485 for the house plus a contribution towards storage/rent if they did break the chain?  Then it seems like they're getting something extra for being fast, rather than being punished for being slow?

That’s a great shout, I will try that. Do I just frame it as making an offer of 485,000 + say 7500 extra for storage & rent costs? Then if they don’t do it I can ask to revert back to 485 etc (I know they can say no) but at least there’s a price there to go back to and they know I’m trying to facilitate them moving out early 

Southend_2

As an aside, the EA may well be lying about the vendors being willing to move to rented. Beware.

Gentoo365

..or they realise how expensive renting is, and how difficult to find a place and decide it's easier to buy somewhere.

Hoenir

FindMillsandovis said:

BarelySentientAI said:

Would something the other way around work?  Offering 485 for the house plus a contribution towards storage/rent if they did break the chain?  Then it seems like they're getting something extra for being fast, rather than being punished for being slow?

That’s a great shout, I will try that. Do I just frame it as making an offer of 485,000 + say 7500 extra for storage & rent costs? Then if they don’t do it I can ask to revert back to 485 etc (I know they can say no) but at least there’s a price there to go back to and they know I’m trying to facilitate them moving out early 

The one thing you've no control over is other people. Moving house is both important and stressfull in people's lives.  They might subsequently see a house they like and make an offer.  The fact you'll have to wait a few weeks later is of no concern to them. 

BarelySentientAI

Millsandovis said:

BarelySentientAI said:

Would something the other way around work?  Offering 485 for the house plus a contribution towards storage/rent if they did break the chain?  Then it seems like they're getting something extra for being fast, rather than being punished for being slow?

That’s a great shout, I will try that. Do I just frame it as making an offer of 485,000 + say 7500 extra for storage & rent costs? Then if they don’t do it I can ask to revert back to 485 etc (I know they can say no) but at least there’s a price there to go back to and they know I’m trying to facilitate them moving out early 

I would phrase it more as 485 and being willing to contribute towards storage/rent if they can break the chain, rather than putting numbers on it (because then they might just be including that cash in the price in their head).

Of course, as hoenir said, they might accept that offer and just decide to make you wait anyway, but then at least you've put the smaller number in your offer and in their head.

Momanns

I would also advise caution on this. Many people say they will and then the reality kicks in. If they do find a property they will likely stall to try and tie it all in.

SilverSix

The only easily legal leverage is to reach the point of exchange with an agreed completion date to suit you. They can however simply delay exchange, refuse or fail to agree a completion date with you should they wish, you would then need to either withdraw (at your expense) or wait.

I would imagine this seller losing their onward for a third time would be enough for them to act.

If they have no other interest or offers the ball is in your court.