Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • dinerodinero
    • By dinerodinero 13th Jan 19, 9:32 AM
    • 47Posts
    • 23Thanks
    dinerodinero
    Paying for searches for the new house but my buyer pulled out
    • #1
    • 13th Jan 19, 9:32 AM
    Paying for searches for the new house but my buyer pulled out 13th Jan 19 at 9:32 AM
    Hello,

    I am a bit lost about this and very very upset. Our house came to the market with PurpleBricks on July, by August it was sold and came out of the market. We bought a property and started the legal paperwork with the conveyancer and we paid our initial payment over 300.
    A day before the final procedures the buyer pulled out. On the Purplebricks website it said that the buyer had their mortgage approved and the rest was on track, so we lost the money that we paid the conveyancer.
    Our house went back on the market in October and the same thing happened again, it was sold in November and last week the buyer pulled out for the same reason ( their mortgage was not giving them the full amount to buy our property ).
    Is that acceptable? Purplebricks has got the policy of 10 months in the market selling or not we need to pay them the fee, well we have not been 10 months really because as we 'sold' twice, our property has not been on the selling website for more than 3 months. I am going to put a complaint but I am not sure if you can help me.
Page 1
    • eddddy
    • By eddddy 13th Jan 19, 9:53 AM
    • 7,336 Posts
    • 7,322 Thanks
    eddddy
    • #2
    • 13th Jan 19, 9:53 AM
    • #2
    • 13th Jan 19, 9:53 AM
    I'm not really sure what basis you have for complaint.

    I guess you chose their 'Pay Later' option. Their terms and conditions (which you agreed to) seem very clear:

    PAYMENT TERMS – EXTREMELY IMPORTANT

    PLEASE READ CAREFULLY:
    If you choose to Pay Later you shall make payment in full of the Product Service Fee when any of the following occurs, whichever happens first:

    - When the property sells and the legal process is complete or
    - If you withdraw your instructions for us to market the property or
    - If you choose not to use the Conveyancing Services or
    - Ten months from the date you enter into the Service Agreement.

    Link: https://www.purplebricks.co.uk/terms/service-agreement/#138

    This may have been an example of where a good 'traditional' estate agent would have been a better choice.

    When your buyers had problems with their mortgage valuations (and/or other problems), the agent would have stepped in and tried to negotiate a solution.

    And if they couldn't negotiate a solution, you wouldn't have to pay them.

    But that's easy to say in hindsight!
    Last edited by eddddy; 13-01-2019 at 9:58 AM.
    • davidmcn
    • By davidmcn 13th Jan 19, 9:57 AM
    • 9,663 Posts
    • 10,365 Thanks
    davidmcn
    • #3
    • 13th Jan 19, 9:57 AM
    • #3
    • 13th Jan 19, 9:57 AM
    It's not clear to me what the 300 was for or who or what you're complaining about. You said the second buyer pulled out "for the same reason", but also that the first buyer had their mortgage arranged, which suggests they had pulled out for a different reason. Do you think Purplebricks have done something wrong? Or your conveyancers?
    • AdrianC
    • By AdrianC 13th Jan 19, 10:04 AM
    • 20,416 Posts
    • 19,088 Thanks
    AdrianC
    • #4
    • 13th Jan 19, 10:04 AM
    • #4
    • 13th Jan 19, 10:04 AM
    So you've lost two buyers because their lender's valuation has downvalued the property? There's a pattern developing there, isn't there?

    You haven't sold the house, quote marks or no. You've accepted two offers, but the putative buyers have pulled out before buying it. If you had sold it, then you wouldn't be asking this question.


    As for whether the time withdrawn from being marketed counts or not, you need to read the Ts & Cs of the contract you agreed to. But July won't be "ten months" until May - you've got another four months to go. Reduce the price to the point at which valuers won't downvalue it from the offers, and remarket it.

    The big question, though, is why you've managed to find two offers so quickly, yet both valuers have downvalued it. Is it because of issues that the valuers found which the putative buyers had not noticed?
    • loveka
    • By loveka 13th Jan 19, 10:05 AM
    • 440 Posts
    • 384 Thanks
    loveka
    • #5
    • 13th Jan 19, 10:05 AM
    • #5
    • 13th Jan 19, 10:05 AM
    It is just had luck that this has happened twice.

    It happened to us 3 times, all 3 it fell through the day before exchange.

    We lost thousands.
    • dinerodinero
    • By dinerodinero 13th Jan 19, 10:13 AM
    • 47 Posts
    • 23 Thanks
    dinerodinero
    • #6
    • 13th Jan 19, 10:13 AM
    • #6
    • 13th Jan 19, 10:13 AM
    It's not clear to me what the 300 was for or who or what you're complaining about. You said the second buyer pulled out "for the same reason", but also that the first buyer had their mortgage arranged, which suggests they had pulled out for a different reason. Do you think Purplebricks have done something wrong? Or your conveyancers?
    Originally posted by davidmcn
    I found very weird that both buyers agreed to buy my property, that both buyers state on the Purplebricks portal that their finances are ok and that they have got a mortgage approved, our state agent says to us that everything is fine. So we buy a property ourselves and pay for the searches to our conveyancer for the new property and then the buyers of our house pulled out.
    I understand that people can change their opinions and ideas, and buying a house is a very important thing but when money has been paid already and now it is not going ahead I do not know if the buyers that pulled out should be paying me the searches that we paid because they lied saying that their mortgage was in place
    • AdrianC
    • By AdrianC 13th Jan 19, 10:18 AM
    • 20,416 Posts
    • 19,088 Thanks
    AdrianC
    • #7
    • 13th Jan 19, 10:18 AM
    • #7
    • 13th Jan 19, 10:18 AM
    "...got mortgage approved..." may well just be an AiP.

    The lender is effectively saying "Yes, we're happy to lend you X in theory"
    What the lender then needs to see is that the property is adequate security for that loan - they don't want their loan secured against somewhere that leaves them with a poor chance of recovering their money in the event of repossession.

    The key part of that is the valuation. The lender themselves never see the property, so they send a trusted professional round to give them his opinion. Two of those trusted professionals have now said yours is not worth the offer.

    That is not a reflection on the borrower. It is a reflection on your property. The borrower's lender simply does not want to secure a mortgage of that size against that house.
    • dinerodinero
    • By dinerodinero 13th Jan 19, 10:19 AM
    • 47 Posts
    • 23 Thanks
    dinerodinero
    • #8
    • 13th Jan 19, 10:19 AM
    • #8
    • 13th Jan 19, 10:19 AM
    So you've lost two buyers because their lender's valuation has downvalued the property? There's a pattern developing there, isn't there?

    You haven't sold the house, quote marks or no. You've accepted two offers, but the putative buyers have pulled out before buying it. If you had sold it, then you wouldn't be asking this question.


    As for whether the time withdrawn from being marketed counts or not, you need to read the Ts & Cs of the contract you agreed to. But July won't be "ten months" until May - you've got another four months to go. Reduce the price to the point at which valuers won't downvalue it from the offers, and remarket it.

    The big question, though, is why you've managed to find two offers so quickly, yet both valuers have downvalued it. Is it because of issues that the valuers found which the putative buyers had not noticed?
    Originally posted by AdrianC
    Thank you for your feedback.

    On both occasions my property has not been devalued, the first buyer said that the bought a house somewhere else and he had problems with the mortgage and the second buyer said the house was devalued for 15,000 but when looking at the report there is nothing wrong with our property, it is because they mortgage did not give them the money that they were asking for.
    • dinerodinero
    • By dinerodinero 13th Jan 19, 10:21 AM
    • 47 Posts
    • 23 Thanks
    dinerodinero
    • #9
    • 13th Jan 19, 10:21 AM
    • #9
    • 13th Jan 19, 10:21 AM
    It is just had luck that this has happened twice.

    It happened to us 3 times, all 3 it fell through the day before exchange.

    We lost thousands.
    Originally posted by loveka
    Sorry to hear that.

    I know, it is really annoying. I think the system is not wright I think that if you agree and then pull out last minute you need to pay for what the other people has paid already.
    • AdrianC
    • By AdrianC 13th Jan 19, 10:23 AM
    • 20,416 Posts
    • 19,088 Thanks
    AdrianC
    On both occasions my property has not been devalued, the first buyer said that the bought a house somewhere else and he had problems with the mortgage and the second buyer said the house was devalued for 15,000 but when looking at the report there is nothing wrong with our property, it is because they mortgage did not give them the money that they were asking for.
    Originally posted by dinerodinero
    So the second one was definitely 15k devaluation... but the first might or might not have been devaluation...?

    Either way, it's irrelevant as far as the relationship between you and the EA is concerned. Right up until the minute that contracts are exchanged, any putative buyer can pull out for whatever reason they like, with zero penalty.

    And so can the seller.
    • eddddy
    • By eddddy 13th Jan 19, 10:30 AM
    • 7,336 Posts
    • 7,322 Thanks
    eddddy
    I understand that people can change their opinions and ideas, and buying a house is a very important thing but when money has been paid already and now it is not going ahead I do not know if the buyers that pulled out should be paying me the searches that we paid because they lied saying that their mortgage was in place
    Originally posted by dinerodinero
    Again, a 'traditional' agent would have qualified the buyer (i.e. asked to see mortgage offers and bank statements), and 'progressed' the buyer.

    i.e. Phoned them for updates, find out if there were any problems, make sure they were doing everything they needed to do, etc

    So you might have found out about the problems much quicker, and lost less time.

    I'm not sure that PB do this kind of stuff.
    • dinerodinero
    • By dinerodinero 13th Jan 19, 10:31 AM
    • 47 Posts
    • 23 Thanks
    dinerodinero
    Thank you all for your feedback.

    Next buyer will have to pay first before we start looking for a property for ourselves, we have learnt after giving away some
    • dinerodinero
    • By dinerodinero 13th Jan 19, 10:33 AM
    • 47 Posts
    • 23 Thanks
    dinerodinero
    Again, a 'traditional' agent would have qualified the buyer (i.e. asked to see mortgage offers and bank statements), and 'progressed' the buyer.

    i.e. Phoned them for updates, find out if there were any problems, make sure they were doing everything they needed to do, etc

    So you might have found out about the problems much quicker, and lost less time.

    I'm not sure that PB do this kind of stuff.
    Originally posted by eddddy
    Thank you, yes that is what we needed to do but we thought that everything was done by PB. Hey we learnt!!!
    • AdrianC
    • By AdrianC 13th Jan 19, 10:34 AM
    • 20,416 Posts
    • 19,088 Thanks
    AdrianC
    Next buyer will have to pay first before we start looking for a property for ourselves, we have learnt after giving away some
    Originally posted by dinerodinero
    You mean you're going to break the chain by moving into a rental property on completion?

    You'll still have upfront costs on the rental - so I guess it's actually a hotel you'll be moving to.

    Oh, and you'll still need to pay your EA and solicitor for the work they do on the sale.
    • dinerodinero
    • By dinerodinero 13th Jan 19, 10:40 AM
    • 47 Posts
    • 23 Thanks
    dinerodinero
    You mean you're going to break the chain by moving into a rental property on completion?

    You'll still have upfront costs on the rental - so I guess it's actually a hotel you'll be moving to.

    Oh, and you'll still need to pay your EA and solicitor for the work they do on the sale.
    Originally posted by AdrianC
    No, I meant until the buyer for our house do not pay for it( instead of saying that their mortgage is on place and that they are buying the property ) we will not buying a new property so I will do as well as they have done and they will have to wait for us to find the right property for us but on the meantime I will be saying that everything is in place as they have done, so we do not loose out again. I know it is not very moral but it is legal!!!
    • Davesnave
    • By Davesnave 13th Jan 19, 10:50 AM
    • 27,093 Posts
    • 97,137 Thanks
    Davesnave
    Where are you going to live when the next buyer has 'paid for' your house?
    Gardening is cheaper than psychotherapy.....and you get tomatoes.
    • AdrianC
    • By AdrianC 13th Jan 19, 10:50 AM
    • 20,416 Posts
    • 19,088 Thanks
    AdrianC
    No, I meant until the buyer for our house do not pay for it( instead of saying that their mortgage is on place and that they are buying the property ) we will not buying a new property so I will do as well as they have done and they will have to wait for us to find the right property for us but on the meantime I will be saying that everything is in place as they have done, so we do not loose out again. I know it is not very moral but it is legal!!!
    Originally posted by dinerodinero
    You're going to have to explain that to me a bit more slowly...


    Let's look at the timeline of a sale:

    1. The buyer makes an offer, the seller accepts it.
    2. The buyer does all the legal work to make sure they're buying what they think they're buying. This takes months. Either can pull out at any stage for any reason.
    3. On exchange date, the buyer and seller exchange contracts, and both are legally bound to the deal. The date for completion is set, probably no more than a fortnight ahead. Neither can pull out without incurring substantial costs.
    4. On completion day, the buyer pays, and the seller gives them the keys to the now-empty house. The house is sold.

    So at what point in that are you planning to stop lying to your solicitor and estate agent, and start looking for somewhere to sleep on the night of completion day?
    • dinerodinero
    • By dinerodinero 13th Jan 19, 10:52 AM
    • 47 Posts
    • 23 Thanks
    dinerodinero
    Where are you going to live when the next buyer has 'paid for' your house?
    Originally posted by Davesnave
    When the money has been deposit for the property is when I will start looking for a property to buy, so the buyers of my property will have to wait until we buy. We will carry on living on the property that they have bought.
    • AdrianC
    • By AdrianC 13th Jan 19, 10:55 AM
    • 20,416 Posts
    • 19,088 Thanks
    AdrianC
    When the money has been deposit for the property is when I will start looking for a property to buy, so the buyers of my property will have to wait until we buy. We will carry on living on the property that they have bought.
    Originally posted by dinerodinero
    The deposit gets handed over on exchange. The completion date is set at the same time. Are you planning on giving them a completion date of several months in the future...? Or are you planning on simply ignoring the date that you agree to?

    One of those will result in the contracts not being exchanged.
    The other will result in you wishing it hadn't.
    • comeandgo
    • By comeandgo 13th Jan 19, 10:57 AM
    • 2,370 Posts
    • 3,249 Thanks
    comeandgo
    When the money has been deposit for the property is when I will start looking for a property to buy, so the buyers of my property will have to wait until we buy. We will carry on living on the property that they have bought.
    Originally posted by dinerodinero
    Oh dear, you have no idea. My only advise is never ever use purple bricks.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,325Posts Today

9,070Users online

Martin's Twitter