Chain with unclear issue

gotintrouble

Hi All,

I was trying to find through the forum similar situation, but couldn’t find. I hope someone bright could help me to understand possible options.
Sale side - Flat through EA. Offer accepted from buyer with good discount, as cash buyer in May 2024
Purchase side - offer accepted by vendor in May 2024.
Preliminary planned with our solicitors for 15th August 2024 exchange/completion, more close to this date vendor’s solicitors were not ready. Next day agreed 25th October 2024 exchange/completion (same day). Solicitors prepared completion statement, requested funds for mortgage, we packed up, but on 24th got a call saying vendor’s top chain is not ready and next completion could be 4th November, but exchange few days before. As we know already today it won’t happen this/next week nor we know what is the issue in the top chain. Now our buyer came and asking to reduce the price due stamp duty increase.
We communicated through all channels try to understand and when actual exchange could happen, no success. We waited almost 6 months and still no date or what’s the issue.
My questions would be:
1. If I refuse to reduce price to buyer and buyer pulls out, do I require to pay EA fee? We have a clause of Ready, Willing, Able Purchaser
2. Why solicitors would be preparing multiple times completion statements if everyone in the chain is not ready to exchange?
3. Could I pull out from purchase and start looking for new house?
4. Can buyer start forcing to exchange contracts as it already waited almost six months?

Thank you for your all answers!

eddddy

gotintrouble said:

1. If I refuse to reduce price to buyer and buyer pulls out, do I require to pay EA fee? We have a clause of Ready, Willing, Able Purchaser

The buyer wouldn't be ready, willing and able to exchange contracts on the agreed terms (i.e. the agreed price), so I can't see an EA winning an argument that you have to pay their fee on that basis.

A roguish EA might take a punt and try to charge you, but I don't think their redress scheme (e.g. The Property Ombudsman) or a court would uphold the charge.


(But check the contract for other reasons that could make a fee payable.)

gotintrouble said:

3. Could I pull out from purchase and start looking for new house?

Yes.

Or maybe better...  tell the seller that you are leaving your offer on the table for the moment, but you're starting to look at other houses.

• If you find another house you like, and you think the sale will progress faster, and you get an offer accepted - then you can withdraw your current offer on the other house.

• But if you can't find anything else, or your current chain starts making progress, you can stick with your current offer.

gotintrouble said:

4. Can buyer start forcing to exchange contracts as it already waited almost six months?

No

gotintrouble

Thank you for your answers! God bless you!
The EA fees:

Settlement of Fees

(a) Fees Payable for Sole Selling Rights

Commission fees are payable as a result of the circumstances outlined in this Agreement Fees become due at exchange of contracts or (if there is no contract) upon completion of the sale.

(b) Responsibility for Fees

The responsibility for the payment of these fees remains with the Client named above. The Agent will submit his account to the Client's solicitors/licensed conveyancer who should settle the payment no later than three working days after completion or 28 days after exchange of contracts on the Property. whichever is sooner. If the account remains unpaid after the due payment date the Agent reserves the right to charge daily interest on the outstanding balance at an annual rate of interest of 4% above Bank of England base rate from the due payment date until payment is received in full.

Ready, Willing and Able Purchaser

A purchaser is a ready willing and able purchaser if he is prepared and is able to exchange unconditional contracts for the purchase of the Property.

You will be liable to pay commission to the Agent, in addition to any other costs or charges agreed, if such a purchaser is introduced by the Agent in accordance with your instructions and this must be paid even if you subsequently withdraw and contracts for sale are not exchanged, irrespective of the reasons.

Double Commission Warning

The Client may be liable to pay agency fees to more than one agent if.

By law, the Agent must te offering the Client or a bu services the Agent or com by the Agent or connecte Conveyancing Services a

The Client has previously instructed another agent to sell the same property on a sole agency, joint sole agency, multiple agency or a sole selling rights basis; or

The Client instructs another agent during or after the period of the Agent's sole selling rights agency.

loubel

On point 2, that are doing it because that is what they are being asked to do. A more sensible approach would be to refuse to discuss completion dates again until everyone in the chain has confirmed that they are ready to go. Then discuss dates, check removals are available etc and when everyone is agreed you can exchange with completion on a future date. Same day exchange and completion just doesn't work with a chain. 

Slinky

Just picking up on the 'Sole Selling Rights' if you had discussed your intention to move with your cousin/friend/hairdresser and they decided to buy your house without ever having any contact with the estate agent, you would still be liable to pay the agent. Never agree to sole selling rights. Cross it out and change to Sole Agency so they will get paid if they actually introduce the buyer, but not anybody else you've found yourself.

macman

Your buyer is not 'willing', because they are no longer prepared to pay the verbally agreed price on which you have proceeded this far. Neither of you are 'able', because you cannot now agree a price. So I can see no way that the EA can demand a fee. And they'd need to sue you to get it.
Since your buyer is apparently a second home buyer, they will have realised some months ago, certainly post election, that this might not get over the line in time. If they want the house, tell them that the extra SDLT is not your responsibility and they cannot expect you to pay it for them. For all they know, you will have the same extra tax due on your own purchase.

EssexHebridean

The ready wiling and able clause is enacted if you pull out of the sale if that wording is correct. If you were unwilling to lower the price, then it would be the buyer who would be pulling out, not you.

as for the completion statements, they are usually prepared a few days prior to exchange and if nothing much will change then there’s little reason for them not to be prepped ahead of time. 

gotintrouble

Thank you a lot for all your comments! I will update how the story finished.

chanz4

is the cash buyer really a cash buyer or are they trying last min to get, another example is gazumping on purpose

gotintrouble

Hi,

I would highly believe that it is cash buyer, as EA where asking them to proof of available finance side + buyer was ready to exchange contracts with completion in few days, but upper chain was withholding without explanation since mid August. I hope tomorrow to end this story and I will update with an outcome.

One more time, thanks everyone for your very valid comments and guidance!

gotintrouble

Hi All,

The story finished with the following outcome: vendor agreed to split the chain and we have completed few days ago.

Thanks!