Buyers Dragging Their Feet

M

mayway

Registered User
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Hi,

I put a house up for sale last September and in November I got an offer which was 15K less than the asking price but they wanted to close the deal quickly (15th Dec) because they had to leave their own house. The EA recommended that I take the offer and I was happy to do so.

Needless to say the deal wasn't done that quickly but the buyers signed the contracts and put down a 5% deposit and set a date of 26th Jan to close.

This has not happened. Everything is ready to go but they are having problems getting the money from the bank. The contract has penalty clauses in it for not closing on the date but my solicitor tells me that it is very difficult to invoke these. I do not want to wait any longer as it's costing me €500 per week in interest for every week that it doesn't close.

Am I now within my rights to pull out of the deal and keep the 5% because they have failed to honour the contract? I would also have no problem waiting as long as they agreed to pay the interest in the meantime.

Thanks.
 
Without getting into a debate on whether you want to hang on to this buyer or not, legally what you can do is get your solicitor to issue a "Notice to Complete"(I think this is the correct term). This gives the buyer 28 days and no more to complete the transaction. If they have not completed within the 28 days then you are entitled to pull out of the deal and keep the deposit.

Disclaimer - I am not a solicitor and the above is a very general overview of the Notice to Complete process and results - however, I had to go down that route 3 years ago when selling my house. Luckily the buyers completed in the time alloted.
 
We were in the exact same situation as you 18 months ago, and when the buyer was 2 weeks late I asked can we pull out, I was told I had to wait another 2 weeks, and if nothing occurs I can pull out of the sale then.

Contact your solicitor asap, as I think you can at this stage pull out of the sale, and keep the deposit.
 
You can insist on invoking the interest clause also. That is what it is there for. Speak to your solicitor asap re issuing the purchaser with a 28 day notice.
 
My solicitor told me that it was next to impossible to collect money on the penalties clause. Does anyone have any experience of successfully invoking this clause?

Thanks.
 
I would be questioning the solicitor as to the inclusion of the clause if he /she feels it cannot be invoked. Why when they are working for you that they lead you to believe that your going to be covered fiancially (getting your interest payments covered) if the sale doesn't go through on the day it should. He/she has alot to answer for.
Best of luck with it.
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