Making an offer on a house 'under offer' in Scotland

tea_and_biscuits_2

Hi,

I made an offer on a house in Scotland that went a closing date, unfortunately we came third out of three offers and were told the winning offer was surprisingly large. That was over four months ago and I noticed recently that it is still 'under offer'. In the meantime, our own house sold and completed in the normal time scale so now we're renting somewhere nearby. I enquired with the seller's solicitor if they would still be open to offers as our financial position had changed and we'd be able to offer a lot more, they replied to say that "The purchaser has not yet received his mortgage papers and this has delayed matters.  If by any chance the deal falls at the last minute, we’ll get back in touch with you. However there are also two or three other people who have also expressed their wish to proceed if the deal falls". My question is; should I just go ahead and make an offer now anyway or would that be pointless/bad form because their deal is too close to completing? I haven't mentioned this to my own solicitor yet or sought their advice, just mulling it over at the moment but would really like that house if the possibility still exists.

user1977

If there are other interested parties then I'd expect it would go to another closing date, if the current buyers fall through. Not much point making an offer, the selling solicitors aren't allowed to accept it unless the current deal has already ended.

oldernonethewiser

If it is still going through the process of being sold to the original prospective buyer then do nothing.  Just wait and if that sale falls through then you can submit your new offer.

fergie_

Sorry, I've just seen this thread. Basically gazumping is not allowed in Scotland - if you were to make an offer and the vendor pulled out of the original deal, then the original buyer could basically sue them (and potentially you).

Once an offer is accepted, it is binding unless missives cannot be concluded - at which point the Vendor could then consider other offers. If missives are concluded, either party could sue the other if the sale does not then complete.

When it's a seller's market missives are often concluded early, where as when its a buyers market, its often at the last minute.

What is also becoming more common in Scotland is 'non-refundable' deposits as part of accepting an offer.

user1977

fergie_ said:

Basically gazumping is not allowed in Scotland - if you were to make an offer and the vendor pulled out of the original deal, then the original buyer could basically sue them (and potentially you).

Bit of clarification needed here - until missives are concluded then legally either party is free to pull out and/or negotiate with alternative buyers/sellers. The parties aren't entitled to sue each other about it.

However, solicitors' professional rules deter this happening, because the solicitors aren't allowed to facilitate gazumping/gazundering - so their clients would have to go and find a different solicitor to act for them.

And I haven't heard of deposits being commonplace.