Buyer is trying to pull out after signing contracts

Discussion in 'Mortgages and buying and selling homes' started by mchcnw, Mar 11, 2010.

  1. mchcnw

    mchcnw Registered User

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    I am currently selling my house. We have signed contracts with the buyer and the deposit is paid. The contracts were signed without being subject to survey. Once the contracts were signed we then signed a contract for our new dwelling and paid the deposit. The buyer then brought in a surveyor to look at the property. we checked with the solictor and they said we should allow the buyer to do this.The buyer passed the surveyor report to us. Having read the report it is ridiculous. we have just had our central heating system checked by an engineer and the surveyor report claims they are badly corroded.And the house needs upgrading from a c2 Ber to a c and this will cost in excess of 4500. Now the buyer has come back asking for a price reduction. When I consulted our solicitor, they informed us that they cannot advise us on this situation and didnt want to know. We are not using an estate agent and are getting no help from our solicitor and am wondering what our next step is
     
  2. mchcnw

    mchcnw Registered User

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    Re: solicitor walked away after buyer signed the papers

    We have signed contracts and it wasn't subject to survey so how can the buyer threaten to renege if we dont meet their demands?
     
  3. mf1

    mf1 Frequent Poster

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    Re: solicitor walked away after buyer signed the papers

    It is impossible for anyone to accurately advise you as the information you are giving is so vague and one sided. A number of possible scenarios occur:

    1. Your buyer wants a price reduction and will put you through the hoops to get that.
    2. They are not a "mark" so even if you sue them to complete the contract you will get nothing.

    Your choices are to agree to the reduction and complete, or not agree and either complete or not complete.

    These are the kind of issues an estate agent would deal with for you. It is quite likely that your solicitor feels they do not want to get embroiled in price negotiation.

    mf
     
  4. mchcnw

    mchcnw Registered User

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    Re: solicitor walked away after buyer signed the papers

    I dont wish to involve our solicitor in price negociations. I just thought then when the contracts were signed, they were legally binding unless one of the clauses had been broken
     
  5. mf1

    mf1 Frequent Poster

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    Re: solicitor walked away after buyer signed the papers

    So go ahead and sue the buyer? How long will it take and what will be the end result?

    mf
     
  6. mchcnw

    mchcnw Registered User

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    Re: solicitor walked away after buyer signed the papers

    I have signed a legally binding contract for my new home and if I cant complete because the buyer of our old home reneges then I am liable to be sued
     
  7. AlbacoreA

    AlbacoreA Frequent Poster

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    Re: solicitor walked away after buyer signed the papers

    I think you need to clarify with the engineer why theres a difference between his check/report and the surveyor report.
     
  8. Neg Covenant

    Neg Covenant Frequent Poster

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    Re: solicitor walked away after buyer signed the papers

    If your solicitor does not want to deal with it then it may be because
    (i) you will not pay them, or
    (ii) they do not trust you or find you very difficult to deal with, or
    (iii) you don't follow the advice you are given and then try to blame somebody else when things go wrong.

    Do you fit into any of those categories?
     
  9. mchcnw

    mchcnw Registered User

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    Re: solicitor walked away after buyer signed the papers

    I would not say so, up to now I have followed my solicitors advice to the letter. I have given no indication that I am not willing to pay the solicitor. Nothing has gone wrong. I am not looking to blame anyone. I am just looking for professional advice and beleved my solicitor would be the best person to advise me
     
  10. mchcnw

    mchcnw Registered User

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    Re: solicitor walked away after buyer signed the papers

    The reason why I have posted is because I wanted advice about my situation. I am giving the full story, it would not be much point me telling half the story because the advice I get would not have any relevance to my situation.
     
  11. Brendan Burgess

    Brendan Burgess Founder

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    Re: solicitor walked away after buyer signed the papers

    I do feel sorry for mchngw as it would seem reasonable to me to complete a purchase, once I had signed contracts for the sale. Now they are in an impossible position.

    Are there lessons to be learnt here?
    1) Tell the buyers to do the survey before they sign the contracts
    2) Don't enter into a contract to buy until the money for the sale is actually in the bank.
     
  12. mf1

    mf1 Frequent Poster

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    Re: solicitor walked away after buyer signed the papers

    Are there lessons to be learnt here?

    Oh yes!

    1) Tell the buyers to do the survey before they sign the contracts

    They should have done their survey before they signed contracts. Caveat emptor and all that.


    2) Don't enter into a contract to buy until the money for the sale is actually in the bank.

    That would be my view. It is a nightmare out there - very little is reliable.

    But, I find that a lot of people know far more than their solicitor. And as for - "should the solicitors have let me sign" ? Clients make their own decisions - solicitors advise.

    mf
     
  13. Bronte

    Bronte Frequent Poster

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    Re: solicitor walked away after buyer signed the papers

    Do you have a copy of the contract? What deposit has been paid and to who? Did you discuss with your solicitor the implications of signing a contract to purchase if the buyer's of your house reneged? Did you think about it? Can you complete on the second purchase if you don't have the money from the sale of your house? Did you discuss with your solicitor putting a clause in your purchase contact that it was subject to the sale of your current property?
     
  14. Bronte

    Bronte Frequent Poster

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    Re: solicitor walked away after buyer signed the papers

    Did you have a deposit? Was there a clause in the contract that allowed the purchasers to pull out if the surveyor's report was not satisfactory? What is wrong with your current solicitor?
     
  15. mchcnw

    mchcnw Registered User

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    Re: solicitor walked away after buyer signed the papers

    yes they put down a deposit. No I have checked with my solicitor there is no clause to allow them to withdraw because of a survey. My solicitor does not want to get involved with this part of the transaction and has informed me that the buyer trying to renegociate after the contract has been signed is happening a lot in the current housing climate. I did not expect the solictor to negociate on my behalf, however I was surprised that the solicitor did not want to advise as to what me options were, as they felt they did not know enough about property value and therefore could not tell if we were getting a good price for the house
     
  16. Vanilla

    Vanilla Frequent Poster

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    Re: solicitor walked away after buyer signed the papers

    Your answer is very confusing- did you ask your solicitor to advise you about the value of the house?

    Your solicitor is there to advise you as to the legal process of selling your house, the options legally open to you to enforce the contract- not to advise about the value.
     
  17. Brendan Burgess

    Brendan Burgess Founder

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    Re: solicitor walked away after buyer signed the papers

    The price has been agreed. A deposit has been paid.

    How much is the price and how much is the deposit?

    1) You can negotiate a reduced price with the buyer but you are under no obligation to do so.

    2) You can issue proceedings to force the buyer to complete the purchase at the agreed price.

    3) You can keep the deposit and try to sell the house to a new buyer.

    I can understand why the solicitor does not want to negotiate the price, but I can't understand why she has not advised you of these options.

    It seems to me that they are trying to pull a fast one and it is not a matter of finance. Your solicitor should write to them telling them to complete the sale or she will issue proceedings to force them to do so.

    You should immediately advise the seller of the house which you want to buy of the problem and tell them you are trying to sort it out.
     
  18. DBK100

    DBK100 Frequent Poster

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    Re: solicitor walked away after buyer signed the papers

    So, the upshot is, that in this instance, a legally binding contract offers no protection to the vendor at all?
    It will simply be too costly and time-consuming to enforce? Why bother with it at all then?
    Surely then, mchcnw can 'pass it forward', and has little to worry about in relation to his contract to purchase being enforced...

    The real lack of protection afforded to the average person in contract is astounding. Building contracts being another major example.
     
  19. mf1

    mf1 Frequent Poster

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    Re: solicitor walked away after buyer signed the papers

    "Surely then, mchcnw can 'pass it forward', and has little to worry about in relation to his contract to purchase being enforced..."

    No.

    What this poster should have done is completed the sale of his/her own property before agreeing to buy another. Doing what he/she did left them with little "wriggle" room.

    This poster has been given a lot of very good advice as to how to deal with their situation. They would be well advised to take it.

    mf
     
  20. grawns

    grawns Registered User

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    Re: solicitor walked away after buyer signed the papers

    If the contract was subject to finance ( get out clause if the bank withdraws finance - standard clause for the past two years along with life assurance) and the bank wasn't happy with the survey and subsequently either lowered their mortgage offer or withdrew it, the purchaser has the right to walk away without penalty. Your solicitor should have explained this to you. He sounds inadequate .