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 2
    • dinerodinero
    • By dinerodinero 13th Jan 19, 10:58 AM
    • 47 Posts
    • 23 Thanks
    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?
    Originally posted by AdrianC
    Right, so we have been twice on your step 3, but our buyers have been on your step 2, without our knowledge, which know we know that it is legal and a normal practice.
    What we will do is for our buyer to be on your step 3 and then as we have got a mortgage in place already we will make sure that we buy a property.
    • Davesnave
    • By Davesnave 13th Jan 19, 11:03 AM
    • 27,576 Posts
    • 98,351 Thanks
    Davesnave
    Right, so we have been twice on your step 3, but our buyers have been on your step 2, without our knowledge, which know we know that it is legal and a normal practice.
    What we will do is for our buyer to be on your step 3 and then as we have got a mortgage in place already we will make sure that we buy a property.
    Originally posted by dinerodinero
    The average time to buy a property is 3.5 months. It can be longer if problems with paperwork are encountered.

    Do you think a gap at least that long between exchange and completion will be acceptable to your buyers?

    What would happen if you found you needed much longer?
    'There are places to go beyond belief'

    Neil Armstrong, apparently referring to worlds beyond the solar system.
    • AdrianC
    • By AdrianC 13th Jan 19, 11:22 AM
    • 21,130 Posts
    • 19,834 Thanks
    AdrianC
    Right, so we have been twice on your step 3, but our buyers have been on your step 2
    Originally posted by dinerodinero
    Which means YOU aren't on "step 3". You cannot be on different steps.


    What we will do is for our buyer to be on your step 3 and then as we have got a mortgage in place already we will make sure that we buy a property.
    Lovely. In a fortnight...?

    Ain't happening.

    If you try that one, then I predict an extended stay in a Premier Inn in your future.

    And that's before we consider what happens if the people you're buying from pull a similar trick on you. And then the people they're buying from pull it on them. And so on up the chain...
    • dinerodinero
    • By dinerodinero 13th Jan 19, 11:42 AM
    • 47 Posts
    • 23 Thanks
    dinerodinero
    Which means YOU aren't on "step 3". You cannot be on different steps.


    Lovely. In a fortnight...?

    Ain't happening.

    If you try that one, then I predict an extended stay in a Premier Inn in your future.

    And that's before we consider what happens if the people you're buying from pull a similar trick on you. And then the people they're buying from pull it on them. And so on up the chain...
    Originally posted by AdrianC
    Our problem has been that we had done everything while the buyer, have not done half of the work that we have done.
    It is our first time buying so know we are learning how to follow the steps.
    I understand the time scale but I do not think the system helps with the process as many people lose a lot of money. I am not sure if my 'buyer' have paid for the searches of my property and I think that needs to be transparent so it is easier for every party to carry on doing what they need to do
    • Durham andrew
    • By Durham andrew 13th Jan 19, 11:57 AM
    • 34 Posts
    • 52 Thanks
    Durham andrew
    So what will you do if you exchange and complete on the same day it’s happened to me twice
    • eddddy
    • By eddddy 13th Jan 19, 1:34 PM
    • 7,544 Posts
    • 7,570 Thanks
    eddddy
    So what will you do if you exchange and complete on the same day itís happened to me twice
    Originally posted by Durham andrew
    It doubt it 'happened to you' - more likely, you chose to do it.

    Nobody can force anyone to exchange and complete on the same day.

    (I guess somebody could threaten to walk away if you don't, but those kind of threats tend to be fairly hollow.)
    • HampshireH
    • By HampshireH 13th Jan 19, 1:39 PM
    • 1,462 Posts
    • 1,784 Thanks
    HampshireH
    OP you have said a few times this is your 1st time buying. Do you mean selling?
    • lisyloo
    • By lisyloo 13th Jan 19, 2:05 PM
    • 23,384 Posts
    • 11,931 Thanks
    lisyloo
    Our problem has been that we had done everything while the buyer, have not done half of the work that we have done.
    It is our first time buying so know we are learning how to follow the steps.
    I understand the time scale but I do not think the system helps with the process as many people lose a lot of money. I am not sure if my 'buyer' have paid for the searches of my property and I think that needs to be transparent so it is easier for every party to carry on doing what they need to do
    Originally posted by dinerodinero
    Firstly as has been advised use a proper estate agent and not PB.
    A traditional estate agent is motivated for the sale to complete becuase they donít get paid until it does.
    They will make sure everyone in the chain is doing what they should but also try to find solutions, so on a devaluation there would usually be some negotiation, so you might have to drop your price for others to be able to proceed (if this has happened twice it indicates the price is too high), but either way the estate agent will try to sort it.

    Also you cannot wait like you are suggesting. You buyer will not tolerate you doing nothing whilst they are committing money and wonít be prepared to wait after exchange for you to looks for somewhere.

    One solution is to break the chain.
    Could you sell and then find temporary accommodation for a while?
    You couĒd put your stuff into storage and rent somewhere cheap or stay with family if thatís possible.
    This puts you in a great position of being a cash buyer and chain free when you buy.

    What you are suggesting (that buyer waits for you to buy) simply will not work as no one will be prepared to do that.
    • middleclassbutpoor
    • By middleclassbutpoor 13th Jan 19, 3:19 PM
    • 552 Posts
    • 467 Thanks
    middleclassbutpoor
    I would never buy a house being sold via Purple Bricks or a 'non-bricks and mortar' based agency until the legal and conveyancing process equally come into the modern age.

    My advice would be that next time you get a buyer, do not do anything on the conveyancing side until the mortgage valuation has taken place and that your estate agent has confirmed that a mortgage offer is now in place.

    A mortgage offer typically lasts 6 months so time for the legals to be completed still at this stage.

    Also consider what else you can do to protect yourself from these pitfalls.

    As an example...

    I was a buyer who has pulled out of a purchase following paying for searches myself because of other things that came to light which made me feel very uncomfortable to proceed.

    However, I decided to use a solicitor recommended by the bricks and mortar Estate Agent (which typically goes against all advice you will get on here.... ) but they offered a good quote (not so cheap you knew the service would be affected because there was no money in it for them) and they also included a free set of searches should the purchase not go ahead and no sale, no fee guarantee.

    We have now found another property and had the searches done - yet I have only paid 1 set of search fees out and should anything go wrong with our sale then we won't have any costs to pay for either other than the first set of searches.

    I couldn't be any happier with the service we have received because I can see updates through their dashboard, can communicate with them easily and the fact that going to a local solicitor now would have cost me about £300 more as a result and other costs involved with time etc, I believe we have done about as much as possible to minimise the financial risk in going through this transaction.

    You are mad if you think you can get your sale to a point where they can't pull out before you start looking because no solicitor will allow you do exchange if you cannot confirm you will be providing vacant possession on completion date and no buyer or their solicitor will allow their client to allow completion and exchange to be 2-3-4 months in the waiting.
    • 3card
    • By 3card 13th Jan 19, 3:56 PM
    • 193 Posts
    • 88 Thanks
    3card
    Let me get this clear in my head

    Is the OP expecting a buyer of their house to pay for the house without any date in the future that they can move into it??

    Am i missing something?
    • babyblade41
    • By babyblade41 13th Jan 19, 4:23 PM
    • 443 Posts
    • 431 Thanks
    babyblade41
    My advice is not to use PB ..

    Secondly what you are proposing is not going to happen and if I was buying off you I'd probably pull out if you were going to try and delay things, I'd think you weren't a committed seller

    Buying and selling is very stressful and expensive , people don't pull out lightly unless it's an investor buying as they aren't as emotionally attached.

    From what you have said and my interpretation of PB they always overprice and not by a small amount.

    My BIL is using them (God knows why but he has been told but he thinks he knows best) His house is at least 50k over priced and possibly even more considering location

    He put his house up for sale before me by about a month, we have gone through a really difficult purchase and complete tomorrow.

    I notice he has now dropped 25k ... I doubt that will be the first reduction in the coming months

    Quite simply I think the mortgage valuations have valued a lot lower than than you have it on the market for and are a lot more realistic valuation and as much as you probably won't want to you will have to re-think on price considerably
    • Davesnave
    • By Davesnave 13th Jan 19, 5:43 PM
    • 27,576 Posts
    • 98,351 Thanks
    Davesnave
    Let me get this clear in my head

    Is the OP expecting a buyer of their house to pay for the house without any date in the future that they can move into it??

    Am i missing something?
    Originally posted by 3card

    No, but the OP is missing a few hundred quid and some time, so they decided to invent a way around that happening. Like most things born out of anger, it wasn't a great plan.

    Ironically, it's the time rather than the fees they've focused on which may be the more costly in the end, bearing in mind the way GB Plc is going just now. I say this as someone who lost their first buyer to the Northern Rock debacle, then lost two more in what followed!

    £300? Pft!
    'There are places to go beyond belief'

    Neil Armstrong, apparently referring to worlds beyond the solar system.
    • diggingdude
    • By diggingdude 13th Jan 19, 6:02 PM
    • 673 Posts
    • 834 Thanks
    diggingdude
    In other news all national debt wiped out.

    OP I hope it's annoyance of a failed sale which is stopping you thinking rationally right now. No one will agree to the plan you have. I just handed over a few quid for searches. Nothing to stop seller backing out once money is spent and nothing I can do (other than out poo through the letter box )
    Free TV Fund - February £973
    • Sibz
    • By Sibz 13th Jan 19, 6:06 PM
    • 304 Posts
    • 214 Thanks
    Sibz
    Sounds like your first let down was either buyer changed mind or had issues getting funds from the bank. The second was refused the funds required from the bank. Both stated finances ready - that would most likely have been an offer in principle subject to valuation by the lender. At least 1 lenders valuation has come up short on the agreed sale price. Neither of these are PB's fault.

    Perhaps your best course of action here is to go to PB (not with a complaint) and nicely ask for their assistance given the circumstances - perhaps they can put off the due date for what you owe?

    If I were you I'd try to establish who valued the property for that lender and why the valued it as they did to try and prevent the same situation arising again
    • Crashy Time
    • By Crashy Time 13th Jan 19, 9:53 PM
    • 7,516 Posts
    • 2,748 Thanks
    Crashy Time
    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

    Doubt you will find many buyers doing that, thought you had already bought the other house though?
    • dawyldthing
    • By dawyldthing 13th Jan 19, 10:55 PM
    • 3,320 Posts
    • 3,295 Thanks
    dawyldthing
    Not all buyers will be the same. Some may try it on (both of these might have been chancers), but the only way you’ll get out of it is by selling, going into rental, then looking for a property to buy as then if they do pull out you won’t have searches paid for on the property you are wanting to buy
    roll on 27th April 2019 or there abouts *34 done* = *6 to go*
    • martin1959
    • By martin1959 13th Jan 19, 11:02 PM
    • 326 Posts
    • 300 Thanks
    martin1959

    You are mad if you think you can get your sale to a point where they can't pull out before you start looking because no solicitor will allow you do exchange if you cannot confirm you will be providing vacant possession on completion date and no buyer or their solicitor will allow their client to allow completion and exchange to be 2-3-4 months in the waiting.
    Originally posted by middleclassbutpoor
    Not true, our last sale was agreed with 10 weeks between exchange and completion. FTB were fine as it gave them longer to save without paying mortgage, and people buying ours new everything was agreed and confirmed, so did not mind waiting. We were happy as house we were moving to (we already owned) was having works done and it was taking longer than expected, but exchange gave us the confidence we would have the funds when expected.
    20 plus years as a mortgage adviser for Halifax (have now retired), and I have pretty much seen it all....
    • dinerodinero
    • By dinerodinero 14th Jan 19, 6:59 PM
    • 47 Posts
    • 23 Thanks
    dinerodinero
    OP you have said a few times this is your 1st time buying. Do you mean selling?
    Originally posted by HampshireH
    Selling and buying
    • phill99
    • By phill99 14th Jan 19, 8:15 PM
    • 8,360 Posts
    • 7,547 Thanks
    phill99
    Some people are just not cut out for home ownership.
    Eat vegetables and fear no creditors, rather than eat duck and hide.
    • Carrot007
    • By Carrot007 14th Jan 19, 8:33 PM
    • 2,101 Posts
    • 1,794 Thanks
    Carrot007
    It is obvious here that your house is overpriced.


    People offer because they want the house enough to not care about the price. However most people need a mortgage so need the bank to agree. They appear to have not. So they cannot continue unless you accecpt less. Did this occur and you refused?


    You are limiting yourselves to buyers with substantial more than just the required deposit and the will to continue once the house was known to be overpriced. Maybe you should say cahs only in future to make sure. Even someone with a small mortgage requrement might be put off by the bank telling them it is not worth it.


    I know this. I was that buyer who wanted the house and price was not important other than the bank letting me buy it. Here are the stages. Offers over 180k. Offer 180K rejected. Ask what they want. Offer 183.5K accepcted. I knew this to be well overpriced given next door with an extension sold for 180K 6 months earlier and prices were stagnating. Still it was the ideal house. It had been on the market before so it was obvious they were overpricing (and maybe becuase they had little wiggle room, but still voerpriced is overpriced). Bank and my report come though. 170K. Doubt since the current market plan has been on for long they will face reality. So look at finances and offer 175K. Accepted and goes though. Yes I overpaid. They then tried it on with do you want the carpets and blinds for £££. I said no. They were left. Still 3 years on I could not care less. Changed the bathroom they thought was great (bodge job) and the kitchen they also thought added value (It had never been cleaned like much of the house). Probably should have been 160K given the issues. But meh. I am in a place I want to be. I am happy with the house now. The yalso thought the boiler did not wortk as it was off and drianed for the surveys. Little bit of ptfe and a couple of 1/8 turns and it works fine. Some people are idiots. Some people also over value their houses and do not tell people up front they will not get a mortgage for that (-10%). If you want to sell the house price reasonably. Not everyone ios accomodating as me and I'm sure the sellers hated me for having there imaginary 8.5 removed (should have been 13.5K but I know deluded when I see it).
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

872Posts Today

6,725Users online

Martin's Twitter