How can you confirm the buyer is financially qualified to proceed

jones_guitar

I'm reading through all of this. Some banks have risen rates multiple times over the last week. Even if he had funds verified, when rates rise a previous mortgage in principle at a lower rate becomes invalid. Everytime rates rise, technically affordability is affected depending on the calculation. I bet this is the problem, he switched lender and a bank pulled their product. The buyer wouldn't wait for rates to drop - that is just silly and they probably won't drop now for the remainder of the year.

What you and your agent are describing sounds normal. We are in a volatile market. I just had a mortgage approved - it was much harder as opposed to a few weeks ago when rates were predicted to fall. My mortgage broker worked until 10pm - ensuring all his clients applications were submitted before rates rise the next day!

I wouldn't phone him. I'd just wait. The banks can be slow BTW. It can take weeks for a mortgage offer to be sent out.

Honest, mine took three weeks. Offer accepted to mortgage offer being send to solicitors, and that might be consider quick. A new buyer would only need to go through the same process, assuming they have a mortgage. Admittedly, a mortgage application may have already been submitted if your fortunate.

20122013

https://forums.moneysavingexpert.com/discussion/comment/81955257#Comment_81955257

I thought as much. As the agent's broker has not seen / aware of buyer's financial information,. without this how is possible for the buyer to proceed?

If the buyer has cancelled and booked another appointment as they have changed broker due to cheaper fee (?) will they still be able to keep the same mortgage deal with this new broker? I sense that is what your post is alerting me to, rates are increasing. The only reason I can think of is that the buyer is trying to drag this out which I have no desire to participate.

jones_guitar

The buyer doesn't cancel the mortgage in principle, the bank does by increasing interest rates. Which is out of the buyers control. If they are applying for mortgages in a market which keeps changing that isn't their fault.

Forgot about the estate agents broker. Your buyer doesn't need to speak to their broker.

Your buyer needs to submit proof of funds to your estate agents sales department not their broker.

This will include either or a mix of mortgage in principle / sale of assets / cash.

Your estate agent needs to confirm if they have seen this. They can outline what they have seen. However, they cannot give you much more details, just confirmation is sufficient.

I also bet your estate agent have more clients affected by mortgages being cancelled.

20122013

https://forums.moneysavingexpert.com/discussion/comment/81955295#Comment_81955295

Very helpful information. According to my agent, the buyer has cancelled and moved to another broker as they did not realised that there was a broker fee they have to pay (?). A few weeks ago I was told that the buyer was applying for a mortgage direct from the lender as they work for the lender .. If they have told me that I would have paid the 'said' fee (if the sale completes), I am where I am at and appreciate all the posts so far, really helpful, so I can plan my next steps with more confidence.

jones_guitar

No idea what they are talking about to be honest.

TroubledTarts

Sound like a story from both sides, not knowing what each other is doingnand presuming not knowing

Oh the wonders of house buying where you have a bunch of school leavers with varying levels of incompetence at an Estate Agents dealing with one of the most stressful events in most peoples lives as the go between.(wild generalisation I know)

If it helps a recent sale in the family took 4 months from start to finish (no chain), a very simple 2 bed bungalow 20 years old and no issues on searches or survey. The normal aks.a question, get a reply in a week if lucky from the estate agents and then the same when it went to solicitors. It is a painful process

20122013

@eddddy

20122013 said

The notice and tie in periods has expired.

Are you saying that you've given written notice of termination?

Just to clarify - estate agents' contracts almost always work like this:

• By default, an estate agents' contract goes on forever - it only ends when you give written notice (usually 2 weeks or 4 weeks), or the property is sold

And…

• Estate agents' contracts usually have minimum contract periods (tie-in periods) - maybe 10 weeks, 12 weeks, 16 weeks or whatever. You cannot terminate the contract (by giving written notice) until that minimum period has finished.

The agency's manager has agreed to my email :

'SOLE AGENCY AGREEMENT 

This is not a ‘Sole Selling Rights agreement’ but a sole agency agreement / contract, that means after our agreement has ended and if a buyer who was not introduced by you  was found, you will not be entitled to a fee.

AGENCY DURATION AND TERMINATION (TIE IN AND NOTICE)
As per my agreement with yourself,  this agreement will be for 6 weeks, with a 0-day notice / cancellation period from 27 December 2025, if a notice is required, then it can be served within the 6 weeks initial term via email.'

QUESTION : I believe the statement above overwrite the Agenct TCs (see Agency TC's attached). Do I still need to serve notice to the agent as 6 weeks has passed since this (second) agreement has ended? If so, how much notice ?

20122013 said

My agent is no sale no fee. Sole agent rights

Has your contract got a clause about a "ready, willing and able buyer"?

I've come across a number of 'dodgy' estate agents who claim to be "no sale, no fee", but they have "ready, willing and able buyer" clauses in their contract.

If there is no "ready, willing and able buyer" clause, you should be able to withdraw from the sale without any risk of having to pay the full fee.

(But some estate agents charge smaller withdrawal / termination fees. Check your contract.)

But just to make sure you understand…

You pay the estate agent a fee for introducing somebody… who eventually goes on to buy your property.

So you can terminate your contract with the estate agent, and they will stop trying to introduce new people.

But if the person they have already introduced goes on to buy your property - you have to pay them their fee (even if you terminated the estate agents contract weeks or months before completion).

So even if you terminate the estate agent's contract, they can still push the buyer to complete - so they get their fee.

Terminating the estate agent's contract is completely different from withdrawing from the sale. You can do either or both.

QUESTION : I cannot see a clause about a "ready, willing and able buyer"? Nonetheless, I will query the agency using your template.

I cannot see whether there is a 'charge smaller withdrawal / termination fees' on the TCs .

I spoke with my solicitor (first time using them) and they have said to carry on with the process and if all fails then I will only need to pay xyz and searches and mgt info pack. I am aware that there myself or the buyer can withdraw at anytime.

20122013 said

May I check I can use the template below, now instead of waiting for the sale to fall through?

The first part of the template is only relevant if there is a "ready , willing and able buyer" clause in the contract.

If there isn't, you can withdraw from the sale for any reason you like at any time.

But you can ask the questions posed in the template - without mentioning a "ready, willing and able buyer".

QUESTION : Appreciate this information.

TCs.jpg

eddddy

20122013 said

The agency's manager has agreed to my email :

'SOLE AGENCY AGREEMENT 

This is not a ‘Sole Selling Rights agreement’ but a sole agency agreement / contract, that means after our agreement has ended and if a buyer who was not introduced by you  was found, you will not be entitled to a fee.

AGENCY DURATION AND TERMINATION (TIE IN AND NOTICE)
As per my agreement with yourself,  this agreement will be for 6 weeks, with a 0-day notice / cancellation period from 27 December 2025, if a notice is required, then it can be served within the 6 weeks initial term via email.'

I'm not sure exactly what you're saying.

If you're saying that you and the estate agent agreed to some modified contract terms via email, then 'Yes' those modified terms would be valid.

(But FWIW, I think you might have misunderstood the difference between 'Sole Selling Rights' and 'Sole Agency' - but that doesn't really matter in this context.

With both 'Sole Selling Rights' and 'Sole Agency', if the buyer is introduced after the estate agent's contract has terminated, no fee is payable to that estate agent.)

20122013 said

I spoke with my solicitor (first time using them) and they have said to carry on with the process and if all fails then I will only need to pay xyz and searches and mgt info pack. I am aware that there myself or the buyer can withdraw at anytime.

Yep. If you want, you can tell your buyer that, because they're moving so slowing, you're putting the property back on the market. (Maybe with a new estate agent. But tell the new agent what you're doing, and they should tell prospective buyers.)

If somebody else comes along and makes an offer, you can review the current buyer's progress and decide which is the best option…

• Refuse the offer and stick with the current buyer
• Dump the current buyer, and switch to the new offer

20122013

@edddy- I was wondering whether I will still need to give termination notice to this estate agency.

If I am new agency, if I will let them know of my situation and confirm how the fees work and I am sure both agencies would like their fees paid.

eddddy

20122013 said

@edddy - I was wondering whether I will still need to give termination notice to this estate agency.

The standard contract you posted says you have to give 28 days notice. But you say that you and the estate agent agreed to make it 0 days notice - so that's binding on both of you.

Maybe just write an email to them saying that you are terminating the contract with no notice, as agreed - and see if they argue.

20122013 said

If I am new agency, if I will let them know of my situation and confirm how the fees work and I am sure both agencies would like their fees paid.

You have to make sure that it's agreed that you only have to pay a fee to the estate agent who introduced the person who ends up buying.

(That generally happens by default if the new agent has a 'sole agency contract', but you might need to do some negotiation if the new agent has a 'sole selling rights contract'.)