ChatterBank0 min ago
Buyer dropped out at last minute
8 Answers
We are absolutely furious! My husband's father died in February this year which was unexpected, so as you can imagine, it was pretty traumatic.
However, he left my husband a very pretty 3 bedroomed cottage with a big garden. It went on the market straight away and in the first week received an offer from a guy who had viewed three times, had the cash and needed no mortgage, and was not in a chain. He said he wanted to complete as quickly as possible.
After a few weeks and he had had a structural survey cariied out, he said that there was a lot of work need on the property and wanted to reduce the offer. We accepted and waited for completion. Nothing happened until about 6 weeks ago when we informed that the delay was being caused by the buyers mortgage offer not being received. Mortgage? He told us and the estate agent that he had the cash.
To cut a long story short, we gave him an ultimatum, either completion was today (29th) or the property would go back on the market. Surprise, surprise, he's pulled out!
We are now left with quite a hefty solicitors bill and apparntly we are not able to claim costs from this buyer depite the fact that he lied to both ourselves and the estate agent.
How can this be legal (and moral)? Any comments, suggestions, general moans, ideas (other than getting a hit man to sort him) would be most welcome.
However, he left my husband a very pretty 3 bedroomed cottage with a big garden. It went on the market straight away and in the first week received an offer from a guy who had viewed three times, had the cash and needed no mortgage, and was not in a chain. He said he wanted to complete as quickly as possible.
After a few weeks and he had had a structural survey cariied out, he said that there was a lot of work need on the property and wanted to reduce the offer. We accepted and waited for completion. Nothing happened until about 6 weeks ago when we informed that the delay was being caused by the buyers mortgage offer not being received. Mortgage? He told us and the estate agent that he had the cash.
To cut a long story short, we gave him an ultimatum, either completion was today (29th) or the property would go back on the market. Surprise, surprise, he's pulled out!
We are now left with quite a hefty solicitors bill and apparntly we are not able to claim costs from this buyer depite the fact that he lied to both ourselves and the estate agent.
How can this be legal (and moral)? Any comments, suggestions, general moans, ideas (other than getting a hit man to sort him) would be most welcome.
Answers
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oh dear, what a stressful time for you!
You cannot make laws about people lying in this situation unfortunately. Have you exchanged contracts? If so he can be made to pay you some money. If you havent exchanged, then there is no way of getting any money from him. It is perfectly legal, as nothing is "final" till contracts are exchanged and nothing is "final final" till completion.
it would be the same if for example he had died in the intervening time, or if you had changd your mind you could also have pulled out (which effectively you have done)
You cannot make laws about people lying in this situation unfortunately. Have you exchanged contracts? If so he can be made to pay you some money. If you havent exchanged, then there is no way of getting any money from him. It is perfectly legal, as nothing is "final" till contracts are exchanged and nothing is "final final" till completion.
it would be the same if for example he had died in the intervening time, or if you had changd your mind you could also have pulled out (which effectively you have done)
Thank you bednobs. It is very very stressful. We know there isn't anything we can do but its about time these sort of loopholes were sorted in this country, I believe in Scotland this sort of thing just can't happen.
Thanks for replying, its good just to chew it over with someone! Have a good weekend.
Thanks for replying, its good just to chew it over with someone! Have a good weekend.
Oh there's plenty of ways this could have been tied down.
You could have had your solicitor get him to sign an option to purchase agreement. Basically the buyer pays a negotiated sum - say �1500 for the option to buy within say the next 3 months. You are agreeing not to sell to anyone else in this time. The price he will eventually pay for the house gets reduced by �1500.
If he withdraws, you keep the �1500. If he doesn't deal goes through
Its a way of forcing people to put their money where their mouth is.
You could have had your solicitor get him to sign an option to purchase agreement. Basically the buyer pays a negotiated sum - say �1500 for the option to buy within say the next 3 months. You are agreeing not to sell to anyone else in this time. The price he will eventually pay for the house gets reduced by �1500.
If he withdraws, you keep the �1500. If he doesn't deal goes through
Its a way of forcing people to put their money where their mouth is.
personally, i would prefer the english situation rather than the scottish one where you are forced into making a decision very quickly over the most improtant purchase in your life.
i suppose in a way, as i said before its actually you that has declined to sell him the house now, rather than him pulling out. Perhaps now that house prices have come down he didnt feel it was a fair price, or perhaps his circumstances have actually changed. Either way, it dosent help you and you must be feeling very glum!
i suppose in a way, as i said before its actually you that has declined to sell him the house now, rather than him pulling out. Perhaps now that house prices have come down he didnt feel it was a fair price, or perhaps his circumstances have actually changed. Either way, it dosent help you and you must be feeling very glum!
The only way to get a determined sale is by auction.
You gave the ultimatum which couldn't be met so you have no recourse to the buyer. The agent has lost his fees, the buyer has lost his exes and you've lost a sale due to yourselves.
You could still receive more costs, for pulling out of sale, from the buyer and agents. I dont suppose you have proof the buyer was to pay in cash, even so, he could have meant cash from the mortgage company. Best advice, lie low!
You gave the ultimatum which couldn't be met so you have no recourse to the buyer. The agent has lost his fees, the buyer has lost his exes and you've lost a sale due to yourselves.
You could still receive more costs, for pulling out of sale, from the buyer and agents. I dont suppose you have proof the buyer was to pay in cash, even so, he could have meant cash from the mortgage company. Best advice, lie low!
Terambulan
We had thoughht for a while that he wa fobbing us off. However, we didnt say 'if you don't complete by Friday the deals off'', we said that we needed to have some sign that he was serious or else we would begin markting again. Incientally, this guy had told the neighbours (with whom we are very close) that he had pulled out of a sale at the last minute not long ago. His solicitor was extremely surprised at what he had done, his costs would have been tremendous.
However, things probably happen for the best. We wil be more wary with new buyers (by the way, the estate agent had proof he had the money) and luckily we have 2 more viewings this week, so fingers crossed.
Thanks for everyone's comments.
We had thoughht for a while that he wa fobbing us off. However, we didnt say 'if you don't complete by Friday the deals off'', we said that we needed to have some sign that he was serious or else we would begin markting again. Incientally, this guy had told the neighbours (with whom we are very close) that he had pulled out of a sale at the last minute not long ago. His solicitor was extremely surprised at what he had done, his costs would have been tremendous.
However, things probably happen for the best. We wil be more wary with new buyers (by the way, the estate agent had proof he had the money) and luckily we have 2 more viewings this week, so fingers crossed.
Thanks for everyone's comments.
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