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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
    • 34,548 Posts
    • 40,591 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 , Boost your income 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
    • 10,076 Posts
    • 10,897 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
    • 47,011 Posts
    • 57,166 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
    • 638 Posts
    • 574 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
    • 27,329 Posts
    • 97,695 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.
    'There are places to go beyond belief'

    Neil Armstrong, apparently referring to worlds beyond the solar system.
    • 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
    • 596 Posts
    • 753 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 February 2019 £20396
    • loveka
    • By loveka 22nd Jul 18, 11:41 AM
    • 440 Posts
    • 384 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
    • 235 Posts
    • 165 Thanks
    jennhg88
    If you hadn!!!8217;t exchanged then nope, not a sausage
    • Crashy Time
    • By Crashy Time 22nd Jul 18, 4:30 PM
    • 7,351 Posts
    • 2,679 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
    • 5,494 Posts
    • 3,534 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
    • 198 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
    • 62,078 Posts
    • 55,252 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.
    "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." - Peter Lynch
    • sparkey1
    • By sparkey1 22nd Jul 18, 10:26 PM
    • 439 Posts
    • 198 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
    • 5,555 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
    • 7,351 Posts
    • 2,679 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
    • 27,329 Posts
    • 97,695 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......
    'There are places to go beyond belief'

    Neil Armstrong, apparently referring to worlds beyond the solar system.
    • Thrugelmir
    • By Thrugelmir 10th Aug 18, 2:17 PM
    • 62,078 Posts
    • 55,252 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.
    "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." - Peter Lynch
    • eddddy
    • By eddddy 10th Aug 18, 3:02 PM
    • 7,448 Posts
    • 7,476 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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