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  • FIRST POST
    • ACACACAC
    • By ACACACAC 9th May 18, 7:30 PM
    • 1Posts
    • 0Thanks
    ACACACAC
    Buyers Vs Seller Balance of Power after exchange
    • #1
    • 9th May 18, 7:30 PM
    Buyers Vs Seller Balance of Power after exchange 9th May 18 at 7:30 PM
    If you wrote a textbook on worst cases of buying a house Iím convinced ours would be up there.

    We first offered and were accepted back in December 2017 - HORRAY!

    Come January the process moved to an unexpected crawl as we waited weeks and weeks and weeks for the management pack to be created - this may have been an excuse but we waited.

    When It all eventually arrived, we turned around paperwork - searches, management pack, fittings and contents, etc - in one night, ONE NIGHT. And expected an exchange date to follow not long later.

    Further weeks passed before we decided to push for an exchange date and identified a preferred date with our solicitor. The response to this? That the seller wanted to put the sales process on hold with no indication of when weíd have an update. Couple of 000ís of pounds spent and just put on hold...!!

    We chased for an update weekly. A week became 2 and then 3 and then 4 and then as the 6th week of waiting arrived we had news - the seller had decided to proceed with the sale - HORRAY, our patience had been rewarded!

    Another week passed with no confirmation of an exchange date. We pushed again and made it clear we wouldnít wait any longer. Finally - a date for exchange was established!! Late-April 2018.

    We were happy to be flexible when the seller asked for a month between exchange and completion and have/had set a date for mid-May 2018.

    2 weeks into exchange and with just a week until completion - BOOM - news that the seller wanted to withdraw from the sale AGAIN.

    And thatís where we are up to - infuriated, confused, horrified, shocked, perplexed, and with no clear alternative other than to accept the relatively measly figure proposed to settle and cancel the purchase.

    Our understanding is that if we, as a buyer, had pulled out after exchange, we would have lost our entire 10% exchange deposit AND further 000ís on the sellerís damages.

    But if the seller pulls out after exchange - all we have a right to is our deposit returned (with the minimal interest) and conveyancing costs covered. No compensation, nothing for stress and anguish weíve been put through, nothing compared to what the seller would receive if the shoe was on the other foot.

    This just seems so unfair and to a pair of first time buyers we are at a total loss!!

    Has anyone been through or know of anything like this? And if so, have any advice on what we should do?
Page 1
    • cjdavies
    • By cjdavies 9th May 18, 7:38 PM
    • 3,549 Posts
    • 3,838 Thanks
    cjdavies
    • #2
    • 9th May 18, 7:38 PM
    • #2
    • 9th May 18, 7:38 PM
    Get onto your solicitor, once exchange has happened, there is no backing out that easily without penalty!
    Last edited by cjdavies; 09-05-2018 at 7:49 PM.
    • Bass_9
    • By Bass_9 9th May 18, 7:39 PM
    • 142 Posts
    • 167 Thanks
    Bass_9
    • #3
    • 9th May 18, 7:39 PM
    • #3
    • 9th May 18, 7:39 PM
    There was a very good thread about this situation a long time ago but I can't find it. I'm sure a more experienced member will be able to post a link (think the OP had a sheep avatar?? Were they called woolly or something similar?)

    I seem to remember they got a very good settlement. Sounds like you might need to give your solicitor a kick up the backside.

    Why do they want to pull out of the sale?
    What settlement figure has been offered?
    Where are they moving? Were they supposed to be buying another property?

    Sorry to hear about your situation OP, must be so frustrating!
    Last edited by Bass_9; 09-05-2018 at 7:49 PM.
    • diggingdude
    • By diggingdude 9th May 18, 7:41 PM
    • 388 Posts
    • 497 Thanks
    diggingdude
    • #4
    • 9th May 18, 7:41 PM
    • #4
    • 9th May 18, 7:41 PM
    There is a really good thread on here from a few years ago where this happened to someone. If you can find it have a read. They got a decent amount of compensation. That house is yours so press them for decent payout
    House Deposit - Target £20000 April 2019
    Current Savings - £10225 13121.22 £14621.22 £16021 £17296
    • eddddy
    • By eddddy 9th May 18, 7:41 PM
    • 6,919 Posts
    • 6,854 Thanks
    eddddy
    • #5
    • 9th May 18, 7:41 PM
    • #5
    • 9th May 18, 7:41 PM
    There was a very good thread about this situation a long time ago but I can't find it. I'm sure a more experienced member will be able to post a link (think the OP had a sheep avatar?? Were they called woolly or something similar?)
    Originally posted by Bass_9
    https://forums.moneysavingexpert.com/showthread.php?t=1806123
    • diggingdude
    • By diggingdude 9th May 18, 7:42 PM
    • 388 Posts
    • 497 Thanks
    diggingdude
    • #6
    • 9th May 18, 7:42 PM
    • #6
    • 9th May 18, 7:42 PM
    There was a very good thread about this situation a long time ago but I can't find it. I'm sure a more experienced member will be able to post a link (think the OP had a sheep avatar?? Were they called woolly or something similar?)

    I seem to remember they got a very good settlement.

    Why do they want to pull out if the sale?
    What figure has been offered?

    Sorry to hear about your situation OP, must be so frustrating!
    Originally posted by Bass_9
    Great minds think alike
    House Deposit - Target £20000 April 2019
    Current Savings - £10225 13121.22 £14621.22 £16021 £17296
    • Bass_9
    • By Bass_9 9th May 18, 7:48 PM
    • 142 Posts
    • 167 Thanks
    Bass_9
    • #7
    • 9th May 18, 7:48 PM
    • #7
    • 9th May 18, 7:48 PM
    that's it. Must have thought they were called woolly because of the sheep avatar lol.

    Diggingdude - agree!
    • anselld
    • By anselld 9th May 18, 7:49 PM
    • 5,882 Posts
    • 5,614 Thanks
    anselld
    • #8
    • 9th May 18, 7:49 PM
    • #8
    • 9th May 18, 7:49 PM
    Has your solicitor actually confirmed that exchange happened?
    • Edi81
    • By Edi81 9th May 18, 7:52 PM
    • 530 Posts
    • 489 Thanks
    Edi81
    • #9
    • 9th May 18, 7:52 PM
    • #9
    • 9th May 18, 7:52 PM
    Did exchange actually happen?
    You should have received a confirmation from your solicitor confirming exchange has happened and the date of completion as that!!!8217;s set at the same time.
    Your post isn!!!8217;t clear on this as this is critical.
    • eddddy
    • By eddddy 9th May 18, 8:01 PM
    • 6,919 Posts
    • 6,854 Thanks
    eddddy
    There was a very good thread about this situation a long time ago but I can't find it. I'm sure a more experienced member will be able to post a link (think the OP had a sheep avatar?? Were they called woolly or something similar?)
    Originally posted by Bass_9
    To save you reading the whole thread.... the outcome was mentioned in post #799

    https://forums.moneysavingexpert.com/showpost.php?p=24724055&postcount=799

    Ultimately, the seller agreed to pay the buyer over £30k in damages.
    • eddddy
    • By eddddy 9th May 18, 8:09 PM
    • 6,919 Posts
    • 6,854 Thanks
    eddddy
    2 weeks into exchange and with just a week until completion - BOOM - news that the seller wanted to withdraw from the sale AGAIN.
    Originally posted by ACACACAC
    So you've exchanged contracts.

    Is this just hot air, or do you think the seller really might try to back out?

    If it does happen, you'll probably need the services of a property litigation solicitor.
    • steampowered
    • By steampowered 9th May 18, 8:16 PM
    • 2,864 Posts
    • 2,834 Thanks
    steampowered
    It is possible to force the seller to sell the property to you through the courts. This is known as an order for specific performance. You can even get the judge to sign the land registry forms if the seller fails to do so. It takes time, but you would be awarded your legal costs.

    Alternatively, you could claim money damages from the seller. You are entitled to receive damages for the sellers' breach of contract to compensate you for all losses suffered.

    This will include conveyancing costs and legal fees. It could also include costs such as additional rent. Or even the difference in price between what you were going to pay the seller and what you had to pay a few months later.

    At this stage, I would ask your conveyancer to make it clear to the sellers' conveyancers that you are not prepared for the sale to fall through. And that, as contracts have been exchanged, you are prepared to take legal action against the sellers to recover your losses if necessary. Hopefully the sellers' conveyancers would then explain the position to the seller and the seller would then reconsider.
    • G_M
    • By G_M 9th May 18, 8:18 PM
    • 45,334 Posts
    • 54,347 Thanks
    G_M
    ......
    2 weeks into exchange and with just a week until completion - BOOM - news that the seller wanted to withdraw from the sale AGAIN.

    ........

    Our understanding is that if we, as a buyer, had pulled out after exchange, we would have lost our entire 10% exchange deposit AND further 000ís on the sellerís damages.

    But if the seller pulls out after exchange - all we have a right to is our deposit returned (with the minimal interest) and conveyancing costs covered. No compensation, nothing for stress and anguish weíve been put through, nothing compared to what the seller would receive if the shoe was on the other foot.

    ?
    Originally posted by ACACACAC
    As others have pointed out, this is wrong.

    The buyer can enforce the sale and/or claim compensation.

    If your seller genuinely fails to Complete as per the contract they will have serious penalties to face.
    • G_M
    • By G_M 9th May 18, 8:30 PM
    • 45,334 Posts
    • 54,347 Thanks
    G_M
    I refer you to the Standard Conditions of Sale, which most solicitors use (so yours probably did - but check):

    http://www.lawsociety.org.uk/support-services/documents/standard-conditions-of-sale-5th-edition/

    If there is default by either or both of the parties in performing their obligations under the
    contract and completion is delayed, the party whose total period of default is the greater is
    to pay compensation to the other party.
    7.2.2 Compensation is calculated at the contract rate on an amount equal to the purchase price,
    less (where the buyer is the paying party) any deposit paid, for the period by which the
    paying party's default exceeds that of the receiving party, or, if shorter, the period between
    completion date and actual completion.
    and

    7.2.3 Any claim for loss resulting from delayed completion is to be reduced by any
    compensation paid under this contract.
    7.2.3 clearly differentiates between "compensation paid under this contract" and a "claim for loss". The contract specifies the compensation but that does not prevent the injured party making a separate claim for loss - in your case the months spent in a hotel etc etc etc
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