I am on the verge of backing out of a property sale. What are my options? [Merged]

eddddy

A holding deposit isn't normal, and it's probably a bad idea.

• It's potentially in the estate agent's and seller's interests to mess you about, until you walk away - so then they can share your £5k

• Then they can get another £5k holding deposit from the next potential buyer. And then the estate agent and seller mess them about until they walk away - so they get another £5k to share

• And so on

propertyrental

raptor2004 said:

propertyrental said:

The £5K deposit sounds right dodgy.

Under what circumstances (if any) do you get it back?

Under what circumstances (if any) do you forfeit it?

Please quote the exact wording which you agreed to.......

Received the sum of Five thousand pounds (£5,000.00) being a holding deposit in respect of the reservation of the above property subject to contract. If this reservation is cancelled by the vendor, the holding deposit will be returned to the purchaser in full. If the purchaser withdraws or cancels due to vacant possession not being given upon completion, an adverse survey, decline of mortgage offer, issues with the title or any other legal issues that cannot be resolved, the holding deposit will be returned in full.  If the purchaser withdraws from the purchase for any other reason at any time, or fails to meet the exchange date, the reservation deposit will be forfeited and split between the owner and the estate agent for administration costs.  If contracts are exchanged the holding deposit will be deducted from the exchange monies given by the purchaser to his /her solicitors on exchange of contracts.

 

I can see lawyers rubbing their hands with glee at the prospect of long disputes over

If the purchaser withdraws or cancels due to vacant possession not being given upon completion, an adverse survey, decline of mortgage offer, issues with the title or any other legal issues that cannot be resolved, the holding deposit will be returned in full.  If the purchaser withdraws from the purchase for any other reason at any time, or fails to meet the exchange date, the reservation deposit will be forfeited

cymruchris

This feels more like buyers remorse than a problem with a washing machine and a fridge. If you decide to pull out (which does seem daft on the face of it to me - but it's your money that's going down the drain) - be much more selective with your next choice.

bobster2

Rather than pull out and lose a £5,000 deposit because the seller won't leave/sell you a washing machine, fridge freezer, kitchen stools and curtains/blinds - why not go ahead with the purchase and buy a brand new washing machine, fridge freezer, kitchen stools and curtains/blinds???

MysteryMe

eddddy said:

A holding deposit isn't normal, and it's probably a bad idea.

• It's potentially in the estate agent's and seller's interests to mess you about, until you walk away - so then they can share your £5k

• Then they can get another £5k holding deposit from the next potential buyer. And then the estate agent and seller mess them about until they walk away - so they get another £5k to share

• And so on

I would think the beneficiaries in a probate sale would rather have a sold house and a hundred grand or so in their pockets than the odd £5k every few months and all the faffing around that having a property on the market entails. 

ThisIsWeird

raptor2004 said:

Grizebeck said:

I am stunned you paid a deposit.

Lesson learnt. Rather let it go and move on if I am not happy 

Hi Raptor.

The two second-hand appliances are worth, what? £200? (Check Facebook Marketplace for similar second-hand items). 

The kitchen stools, ditto - check Google for a guide price. (Are they of a rare and specific vernacular?)

And you are considering walking away, forfeiting your £5k deposit, over this?

Even the gates, if they don't work, are likely to be pretty cheap to repair. And you are considering forfeiting £5k over this?

In the overall scheme of things, that of your short, medium, or even long-term ownership of this house, these things are virtually immaterial. Losing £5k for a not good reason surely isn't?

This is not rational behaviour; it is (over)emotive, in my view.

May I ask if you have a condition that could be influencing your decisions here? If so, do you have a family member, friend or colleague who could help you here to work a reasoned way through to completion?

You shouldn't be 'happy' about walking away over such trivial matters, and the loss of £5k.

As others have pointed out, that £5k contract does make them liable if they don't leave the property 'vacant' on completion, so perhaps this makes them nervous too? Tbh, I don't know if 'vacant' includes such goods, or is it just humans!

raptor2004

Hi, currently in the process of buying a property and need to understand the process of setting the exchange date and completion date.

Just for a bit of context, I have appointed a solicitor back in early August (made initial payment on 16th Aug) and I have now received my mortgage offer only yesterday. I had received the fittings and contents list from my solicitor around 2 weeks ago and I had a few concerns, one of which was that the vendor needs to repair the front electric gates. I haven’t yet had a response.

Both parties are chain free so I’m not sure what the hold up is exactly. I had contacted my solicitor around a week ago to get a date in for completion but was told that they still need to do their checks and it will take another 8 weeks?! It’s been 6 weeks now from when I appointed them so not sure why it’s taking so long.

so my questions are:

- do I agree a completion or exchange date first?

- how do I go about setting this up and what can I do to expedite it?

I am getting quite frustrated and not sure what to do now. My partner is looking at other properties and we are getting to a point where we may just cut our losses and find another property if this is going to take a long time. 

bobster2

Have you received the searches back?

Nobody agrees exchange and completion dates until everyone is happy to proceed. Then things can move very rapidly.

HouseMartin567

I’m in the same situation, with similar timelines - albeit a small chain either side. For us, searches are back, mortgage offer in, and enquiries satisfied - yet still no talk of dates.

Conveyencing in this country just seems painfully slow! However, unless you can identify a particular problem (e.g. not responding about the gate repair) then I don’t think choosing another property will help - what’s to say the process on a new property will be any quicker? Besides, you have the bonus of no chain with this one! You need to try and identify the hold up, be it your solicitor, the vendor/their solicitor, or an outside influence like searches being delayed.

To answer your question on exchange and completion dates. They will both need to be agreed at the same time, as the specific date of completion will need to be included in the contracts that are exchanged.

FlorayG

Exchange date is set when both parties are happy with the sale and purchase and all searches have been done and issues resolved.
Completion date is normally 1-2 weeks later, again agreed by both parties, people need to book time off work and arrange moving companies for the same day so it may have to be flexible