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Compensation for pulling out of house purchase

Stolljj
Stolljj Posts: 1 Newbie
in House buying, renting & selling
Long shot I know, but wondering if I have any case to claim back expenses from a buyer that pulled out from the purchase of a property I own. I negotiated a sale with a first time buyer, price agreed, agent verified funding (cash deposit and mortgage agreed in principal) conveyancing went without any issues, on the day of the survey I was informed by the agent that the buyer had resigned from his job to become a director of a company meaning his mortgage lender had understandably refused the loan due to the change in circumstances. I’m out of pocket to the tune of £1000 in legal fees, 3 months mortgage payment and council tax, and of course landing me back at square one. I’m a property landlord and developer so am used to sales falling through over typical issues that come up via surveys, leases etc, but this was entirely the fault of the buyer. If anybody’s had any similar experience or can point me in the right direction for advice I’d be very grateful. Many thanks
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Comments

  • Browntoa
    Browntoa Posts: 49,299 Forumite
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    Absolutely no chance..... Nothing's legally binding until after exchange of contracts
    Ex forum ambassador

    Long term forum member
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    Stolljj wrote: »
    I’m a property landlord and developer so am used to sales falling through over typical issues that come up via surveys, leases etc
    So presumably you've had discussions before with your solicitor about whether you're entitled to (or liable to pay) any compensation, and they'll have told you the answer is no if you haven't exchanged contracts. Same here.
  • G_M
    G_M Posts: 51,977 Forumite
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    Did you take out insurance to cover this eventuality?


    Did you negotiate a 'no sale no fee' contract with your conveyancer?
  • Edi81
    Edi81 Posts: 1,444 Forumite
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    Get your mortgage payments and council tax back! That!!!8217;s a new one!
    No chance.
  • Davesnave
    Davesnave Posts: 34,741 Forumite
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    You're a developer, landlord and you have a solicitor, so why are you asking such basic questions here?



    But in answer to your question, yes, I had similar experiences on two occasions, one after the other. The only thing I could do was accept the situation, move on swiftly and not hold grudges. After all, I've also had cold feet. Spending hundreds of thousands is a big decision.
  • Bass_9
    Bass_9 Posts: 151 Forumite
    Not a chance.
    And why should the buyer cover any mortgage payments or council tax? Your house, your responsibility, and that is always the case until at least exchange of contacts.

    If you changed your mind about selling, would you be happy to pay compensation to the buyer?
  • diggingdude
    diggingdude Posts: 2,445 Forumite
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    This should go in a windup of the day thread
    An answer isn't spam just because you don't like it......
  • loveka
    loveka Posts: 535 Forumite
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    No.

    I lost £12k in this way last year. I have moved on, but I'm afraid I bear a grudge. I saw the guy driving round the village in a brand new convertible BMW and I was seething! He and his wife 'changed their mind' on the day of exchange.
  • jennhg88
    jennhg88 Posts: 253 Forumite
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    If you hadn!!!8217;t exchanged then nope, not a sausage
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    Ah well... it`s only £1000, could have been worse. If a landlord/developer is feeling the loss of £1000 the market must be in trouble?:rotfl:
This discussion has been closed.
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