Seller pulling out of sale

Graeme7777

Hi,

Is it legally binding to write into the offer to purchase a clause that holds the seller liable for the buyer's costs related to the purchase if the seller pulls out of the transaction after having accepted the buyer's offer?

A couple of people I know have had sellers take the property off the market after accepting their offers, only to relist it shortly afterwards, obviously in the hope of getting a better offer.

Thanks!

hostman

Verbal contracts are legally binding.

If the seller accepts a buyers offer, it is binding.

But, the problem has always been proving anything was agreed verbally. Unless you recorded the conversation, you can't prove it.

Therefore, a seller or a buyer can pull out of a purchase at any time between offer accepted and the completion date.

silvercar

All offers are made 'subject to contract', until the contract is actually signed there is nothing to stop either party walking away.

I don't think that the current market is the time for sellers to pull out to get a better offer.

chickmug

Graeme7777 wrote: »

Hi,

Is it legally binding to write into the offer to purchase a clause that holds the seller liable for the buyer's costs related to the purchase if the seller pulls out of the transaction after having accepted the buyer's offer?

Would you accept this both ways so both buyer and seller agree to this arrangement where if either pull out they reimburse the other parties costs?

If they can find a solicitor able to draw up the, legally binding, bit of paperwork. I have come across this where the buyer and seller have each written a letter to each other offering to pay the fees if either back off. A very rare arrangement and solicitors on each time poo poo'd the idea.

Bogof_Babe

If the agreement (to sell/buy) was made through an EA, would that not count as proof, as the impartial EA would be a witness to the acceptance of the offer?

SquatNow

You could write such a contract and demand the buyer sign it.

They wouldn't, but you could write it none the less.

Only a f***ing idiot would sign a contract like that. Seller can start applying any terms they like after that. Imagine... you sign the "offer" contract. The seller sends you the "sale" contract. It tells you they are taking the kitchen, the pipes, the fitted wardrobes, the lightfittings, the windows... now you have a choice: complete anyway and pay to refit the house, or give the seller all your deposit money. Either way your screwed.

david29dpo

It can and has been done. The problem is getting the seller to sign it. The next problem is dragging the seller though the courts to get your costs

AJ1982

Sadly, you have experienced the property market wonders, assuming you dont live in Scotland, there is no normal recourse for buying/selling up until the points of exchange. Hurtful as it is, its happened to me, fortunately I suffered no financial loss as the seller pulled out before surveys visited, so I was refunded by mortgage company.

I dont know specifically about a contract to enforce sale, I know they have something law abiding in Scotland, sadly in England both sides can pull out for whatever reason. Nature of the game im afraid.

In my opinion, the only likely contract you will get to enforce a sell before the official exchange of contracts is to recover loss for surveys/searches etc, tho getting a seller to agree to that, plus the time taken to draw up the agreement??? Depends who u buy off sadly.

Trust me, the right property for you has gone now... (Less you can match the asking price, though maybe not a good idea in a falling market), took me 4 months of searching, but I found the new "right property"