Sold house, buyer pulls out

[Mattk]

We recently sold our house but I was told today that another estate agents have contacted the buyer to say the seller of a house that he had been previously looking at would now accept a lower offer so he has withdrawn from our sale and gone with them instead. We agreed to sell approx 10 days ago and may have lost other potential buyers as a result.

I realise that nothing was in writing at this early stage but morally/ethically (possibly legally) can he or they (estate agents)do that?
Completion was scheduled for mid October as neither of us are in a chain and he had already arranged for builders to come round round and provide quotations for work he wanted done.

I realise that its probably just unlucky and 'these things happen' but it does seem harsh that a seller can be coaxed away so easily by a 3rd party.

Thx for any views or advice.

[tigwig]

Unfortunately unless you live in Scotland there is nothing that can be done about this. Its disgusting and shouldn't be allowed to happen. One of my friends was sold her house and the very night before she was due to complete, with everything packed up and ready, her buyer pulled out. Morally very wrong but legally no.

[bednobs]

had you exchanged?

[Mattk]

Thx as I thought.
Surely some 'moral code' must exist between estate agents also? i.e. 'we wont poach your sales if you dont poach ours'.

[smurfchops]

I think these things do happen, its part of buying and selling unfortunately. I don't think you can safely say you have bought a house, until you have signed a contract. I am sure someone else will give you more information. the thing is, when you lose a house, usually a better one comes along ... so good luck.

[jaydah]

the other agent wants commission for the sale. Drop your sale price if you want to win back the purchaser

[joko]

there may well be... but 'morals' are not laws and are not legally binding and in some cases a matter of opinion...so its really irrelevent in terms of helping you...

perhaps you could approach the papers? if nothing else it will affect their future customers...

[mike11111]

Unfortunately as you have stated, there was nothing in writing. In English law all contracts for the sale or disposition of land must be in writing otherwise there is no contract. I know it's a great disappointment and ethically dubious but there is nothing you can do legally.

[annie0000]

Even in Scotland that is not the case anymore - it's misunderstod that once you have shaken hands on the deal then that's it done and dusted. Technically until missives are exchanged then you are not tied into the deal - in the past, missives would be exchanged fairly quickly and it was a formality. Nowadays, people hold off signing the missives as long as they can get away with and quite often pull out before they do so and leave sellers (and sometimes buyers) adrift. Not nice ;o(.

Unfortunately that's just life and the pain of buying and selling property. The last time we sold we were twice almost at missive signing stage when it went awry. The first time our buyer continued to look for other properties and bought another instead - he didn't even have the curtesy to let us know, we found out through a third party and contacted his lawyers. The second time, the couple genuinly wanted to buy, but wouldn't sign the missives because they didn't have a buyer for their house and didn't want to be tied in. We forced their hand as we couldn't wait in limbo - we were already tied into our purchase, so they pulled out and we had to get a third buyer - we insisted that they sign quickly or we would pull out of the deal.

[annie0000]

Just to add that the 2nd buyers and us were using the same agents and they told them that they would sell their house no problem so that they should offer on ours! Not very ethical - in the end, we found our own buyer and therefore they did not get any commission - serves them right

[Mattk]

Thx guys and sadly it would appear I am not alone!

[twix123]

Although the Estate Agent may be morally wrong, a property cannot be classed as bought or sold until the signed contracts have been exchanged. Up to that point either seller or purchaser can pull out without any compensation costs, only extra legal fees that may have been incurred.

[dotty.]

I accepted an offer on my house in February 2008, the estate agent put a sold sign up within a week, all summer the estate agent and the buyer faffed about and kept delaying and in september the estate agent told me the buyer could not proceed cos he had not secured a mortgage, all that time noone else was able to view the property cos the estate agent had labelled all publicity shots as 'sold' including on their internet site, bastards.

[mike11111]

I have often seen signs outside properties with the legend, "Sale agreed subject to contract", which suggests to me that the Estate Agents are still interested in further enquiries.

[dotty.]

I've often seen them too but it always suggests to me that the house is sold.

[annie0000]

I regularly pulled down the sold sign or told the agents to take it away when we were selling - I did not allow them to remove the property for sale from any websites etc. until contracts were exchanged. You live and learn. Wouldn't use an agent again.