I am selling my house and have had an offer via the estate agent and agreed on a price. This person is in the process of selling their own house and have not put a deposit for my house. I would like to do the same with a house that I like, is this bad practice ? I thought I would have to have mine sold and signed before I can agree a price on a prospective purchase. I am in position to put a deposit though.
Have gone sale agreed on my house - can I put in an offer on another house?
- Thread starter roker
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roker - when you say that the purchaser has not put down a deposit yet, do you mean the booking deposit with the Estate Agent. If so , are you are aware that this provides no legal guarantee - the purchaser can pull out at any time? This changes when/if they sign the initial contract with their solicitor a pay a purchase deposit.
So the same would apply with your househunting. Theoretically, you could agree a price on the house you like and pay a booking deposit. The vendor and his/her Estate Agent may or may not accept this until your own sale situation is confirmed (and if there is another bidder with a clearer position from a financial view, they probably will not accept yours). But, as Palerider has indicated, do not sign the purchase contract with the solicitor until you own house sale is contractually agreed. Your own solicitor should advise you on any clauses you need to include in this contract to protect yourself.
So the same would apply with your househunting. Theoretically, you could agree a price on the house you like and pay a booking deposit. The vendor and his/her Estate Agent may or may not accept this until your own sale situation is confirmed (and if there is another bidder with a clearer position from a financial view, they probably will not accept yours). But, as Palerider has indicated, do not sign the purchase contract with the solicitor until you own house sale is contractually agreed. Your own solicitor should advise you on any clauses you need to include in this contract to protect yourself.
Brendan Burgess
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Hi roker
What stage is your buyer at?
If they have just put their house on the market, then you should not have accepted their offer.
If they have just gone sale agreed without an exchange of contracts, then you should not have accepted their offer.
Of course, if you had no other offers, then you lose nothing by accepting their offer.
In any event, by all means put in an offer on another house. It's unlikely that the sellers would accept your offer. If they do, you can put down a deposit in perfect safety. But your solicitor will not allow you to sign the contract until she is fairly sure that you will have sold your house and received the proceeds by then.
If their solicitor has confirmed that they have exchanged contracts with their buyer and therefore the sale is legally binding on the purchaser of their house, you are in a better position. Then the seller of the house you want to buy should be able to accept your offer and you should be allowed to sign the contract by your solicitor.
Brendan
What stage is your buyer at?
If they have just put their house on the market, then you should not have accepted their offer.
If they have just gone sale agreed without an exchange of contracts, then you should not have accepted their offer.
Of course, if you had no other offers, then you lose nothing by accepting their offer.
In any event, by all means put in an offer on another house. It's unlikely that the sellers would accept your offer. If they do, you can put down a deposit in perfect safety. But your solicitor will not allow you to sign the contract until she is fairly sure that you will have sold your house and received the proceeds by then.
If their solicitor has confirmed that they have exchanged contracts with their buyer and therefore the sale is legally binding on the purchaser of their house, you are in a better position. Then the seller of the house you want to buy should be able to accept your offer and you should be allowed to sign the contract by your solicitor.
Brendan
Thanks all. The buyer has not put a deposit with the estate agent, which appears pointless anyway if they can still pull out of the sale. The estate agent put the price to us and we accepted, but I have made it clear that my house is still on the market until the deposit is paid. I am aware that it is not legal until it is signed by the solicitor's. Then I could do the same and secure a price on the house that I wish to buy knowing I can get my deposit back if things go wrong
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They can pull out, but at least it goes some way to prove they are serious. Most purchasers are unlikely to have enough cash to put deposits on multiple properties.