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  • FIRST POST
    • Stolljj
    • By Stolljj 21st Jul 18, 11:16 PM
    • 1Posts
    • 0Thanks
    Stolljj
    Compensation for pulling out of house purchase
    • #1
    • 21st Jul 18, 11:16 PM
    Compensation for pulling out of house purchase 21st Jul 18 at 11:16 PM
    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. Iím 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. Iím 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 anybodyís had any similar experience or can point me in the right direction for advice Iíd be very grateful. Many thanks
Page 1
    • Browntoa
    • By Browntoa 21st Jul 18, 11:18 PM
    • 34,033 Posts
    • 40,146 Thanks
    Browntoa
    • #2
    • 21st Jul 18, 11:18 PM
    • #2
    • 21st Jul 18, 11:18 PM
    Absolutely no chance..... Nothing's legally binding until after exchange of contracts
    I'm the Board Guide of the Referrers ,Telephones, Pensions , Shop Don't drop ,over 50's and Discount Code boards which means I volunteer to help get your forum questions answered and keep the forum runnning smoothly .However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to forumteam@moneysavingexpert.com Any views are mine and not the official line of MoneySavingExpert.
    • davidmcn
    • By davidmcn 21st Jul 18, 11:46 PM
    • 9,284 Posts
    • 9,896 Thanks
    davidmcn
    • #3
    • 21st Jul 18, 11:46 PM
    • #3
    • 21st Jul 18, 11:46 PM
    Iím a property landlord and developer so am used to sales falling through over typical issues that come up via surveys, leases etc
    Originally posted by Stolljj
    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
    • By G_M 22nd Jul 18, 2:04 AM
    • 46,149 Posts
    • 55,827 Thanks
    G_M
    • #4
    • 22nd Jul 18, 2:04 AM
    • #4
    • 22nd Jul 18, 2:04 AM
    Did you take out insurance to cover this eventuality?


    Did you negotiate a 'no sale no fee' contract with your conveyancer?
    • Edi81
    • By Edi81 22nd Jul 18, 6:54 AM
    • 571 Posts
    • 528 Thanks
    Edi81
    • #5
    • 22nd Jul 18, 6:54 AM
    • #5
    • 22nd Jul 18, 6:54 AM
    Get your mortgage payments and council tax back! That!!!8217;s a new one!
    No chance.
    • Davesnave
    • By Davesnave 22nd Jul 18, 7:46 AM
    • 26,848 Posts
    • 96,560 Thanks
    Davesnave
    • #6
    • 22nd Jul 18, 7:46 AM
    • #6
    • 22nd Jul 18, 7:46 AM
    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.
    "We won't get fooled again...."
    • Bass_9
    • By Bass_9 22nd Jul 18, 8:05 AM
    • 144 Posts
    • 167 Thanks
    Bass_9
    • #7
    • 22nd Jul 18, 8:05 AM
    • #7
    • 22nd Jul 18, 8:05 AM
    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
    • By diggingdude 22nd Jul 18, 9:06 AM
    • 454 Posts
    • 595 Thanks
    diggingdude
    • #8
    • 22nd Jul 18, 9:06 AM
    • #8
    • 22nd Jul 18, 9:06 AM
    This should go in a windup of the day thread
    House Deposit - Target £20000 April 2019
    Current Savings - £10225 13121.22 £14621.22 £16021 £17296£15171 £15971 £16983
    • loveka
    • By loveka 22nd Jul 18, 11:41 AM
    • 435 Posts
    • 383 Thanks
    loveka
    • #9
    • 22nd Jul 18, 11:41 AM
    • #9
    • 22nd Jul 18, 11:41 AM
    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
    • By jennhg88 22nd Jul 18, 4:17 PM
    • 230 Posts
    • 163 Thanks
    jennhg88
    If you hadn!!!8217;t exchanged then nope, not a sausage
    • Crashy Time
    • By Crashy Time 22nd Jul 18, 4:30 PM
    • 6,950 Posts
    • 2,551 Thanks
    Crashy Time
    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?
    • csgohan4
    • By csgohan4 22nd Jul 18, 5:53 PM
    • 5,269 Posts
    • 3,371 Thanks
    csgohan4
    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.
    Originally posted by loveka
    Karma always come back to bite...
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • sparkey1
    • By sparkey1 22nd Jul 18, 10:09 PM
    • 439 Posts
    • 193 Thanks
    sparkey1
    No, unless you have exchanged contracts. Thats because property is complicated, by that I mean there are so many parties involved when you purchase and so many things can go wrong. Under contract law, no exchange of money has been made, therefore no contract. (in simplistic terms)
    • Thrugelmir
    • By Thrugelmir 22nd Jul 18, 10:20 PM
    • 61,280 Posts
    • 54,515 Thanks
    Thrugelmir
    Iím out of pocket to the tune of £1000 in legal fees,
    Originally posted by Stolljj
    Could you return to the forum and explain how you incurred such a sum.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • sparkey1
    • By sparkey1 22nd Jul 18, 10:26 PM
    • 439 Posts
    • 193 Thanks
    sparkey1
    Could you return to the forum and explain how you incurred such a sum.
    Originally posted by Thrugelmir
    If he is buying another place and selling one he could easily be up to the £1000 mark. Especially if he has paid out for the additional items such as Chancel Insurance, Lease insurance, extra searches beyond the normal ones. When I bought my current house, it came with a garage that was under a coachhouse. The garage was leasehold so I got stung for a leasehold purchase and a freehold purchase. So much for a budget solicitor!

    However would still be interested to know... good for comparison!
    • westernpromise
    • By westernpromise 10th Aug 18, 10:58 AM
    • 4,263 Posts
    • 5,551 Thanks
    westernpromise
    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.
    Originally posted by loveka
    Never sell to a BMW or Audi driver. They could parachute from a snake's bottom and still have room to freefall.
    Buying a house, if you believe the market has a way to fall, or if you are paying sill asking prices ( like some sheeple ) or if you are buying in London, is now a massive financial gamble!!!!! - June 8, 2012 by TheCountOfNowhere
    • Crashy Time
    • By Crashy Time 10th Aug 18, 12:57 PM
    • 6,950 Posts
    • 2,551 Thanks
    Crashy Time
    I would imagine this sort of thing will be becoming much more common in the coming months.
    • Davesnave
    • By Davesnave 10th Aug 18, 2:07 PM
    • 26,848 Posts
    • 96,560 Thanks
    Davesnave
    I would imagine this sort of thing will be becoming much more common in the coming months.
    Originally posted by Crashy Time
    We can all imagine stuff, Crashy, and I have to admit it's a cheap MSE activity.

    Unfortunately, in my case, Scarlett Johannson has other plans for the coming months.


    But, as you know, doesn't prevent us dreaming......
    "We won't get fooled again...."
    • Thrugelmir
    • By Thrugelmir 10th Aug 18, 2:17 PM
    • 61,280 Posts
    • 54,515 Thanks
    Thrugelmir
    If he is buying another place and selling one he could easily be up to the £1000 mark.
    Originally posted by sparkey1
    Didn't even appear to have had the mortgage in place.

    on the day of the survey I was informed by the agent that the buyer had resigned from his job
    Unlikely that the legal process had even commenced.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • eddddy
    • By eddddy 10th Aug 18, 3:02 PM
    • 7,240 Posts
    • 7,197 Thanks
    eddddy
    I would imagine this sort of thing will be becoming much more common in the coming months.
    Originally posted by Crashy Time
    Were you replying to western promises post from today...

    Never sell to a BMW or Audi driver. They could parachute from a snake's bottom and still have room to freefall.
    Originally posted by westernpromise
    Or to a post that was 3 weeks old?


    Assuming you were replying to today's post... why do you think that parachuting from a snakes bottom will become much more common?

    Can you provide a link that supports this view?
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