Need to pull out of sale: Purchaser signed contracts but we have not signed anything.

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suzyann

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Need advice - We have had an unexpected change in circumstances and have decided that we would like to pull out of sale:
We are at the following stage : sale agreed and the purchaser has signed contracts but we have not signed anything yet. .. What are the likely fees/charges we will incurr if we decide to not go ahead with sale.

When do contracts become legally binding?
Will I need to pay the EA their full fee ?

Thanks
 
Re: Help: Need to pull out of sale

Obviously, there is no contract until both parties sign
 
Re: Help: Need to pull out of sale

you will need to pay the purchaser their survey and legal costs and the ea their advertising costs (not the fee) and thats it, you are in the clear.
 
Re: Help: Need to pull out of sale

2Pack said:
you will need to pay the purchaser their survey and legal costs and the ea their advertising costs (not the fee) and thats it, you are in the clear.
Click to expand...

Are you sure this is correct 2Pack? I don't see the need to pay the purchaser's legal costs. Surely the deposit is all that is paid back as no contracts have been signed?? The estate agent's fee, I'm sure is negotiable, after all there is no sale but advertising costs will have to be paid.
 
I know that the defense of ea's is in itself indefensible but ...

The ea has "sold" the house and found a purchaser that has signed a contract... Have they not delivered the service that they were retained to do and therefore deserve their agreed fee?
 
In prinicpal I'd 100% agree with you although most agents have a no sale no fee basis of operation which would mean technically they are not entitled to payment.
 
Re: Need to pull out of sale: Purchaser signed contracts but we have not signed anyth

ontour said:
I know that the defense of ea's is in itself indefensible but ...

The ea has "sold" the house and found a purchaser that has signed a contract... Have they not delivered the service that they were retained to do and therefore deserve their agreed fee?
Click to expand...

The house is not sold until contracts are signed and money exchanges hands. But I know what you mean. However, EA usually work on a percentage of the sale and, in this instance, no sale has occurred. I wouldn't worry about EAs, I'm sure they have hefty expenses!!:rolleyes:
 
Re: Need to pull out of sale: Purchaser signed contracts but we have not signed anyth

Hi suzyann

I wouldn't worry about the estate agents. But I would worry about the purchasers. They have agreed to buy your house. They are basing their plans on this. They may well have sold their house. They are excited about moving in and now you pull the plug.

Your change in circumstances would need to be dramatic to morally justify it. But you are legally ok.

Brendan
 
I know what you mean Brendan. Sometimes in life things happen that are beyond our control. I'd hate to have to do this to anyone as I remember the heartache when it was done to me!!
 
Having been gazumped ourselves in a previous sale we are not doing this lightly ... and are very upset with the prospect of having to do this. We do know that the would be purchaser is buying to let and understand that we will be affecting 3 parties here - the purchaser, the EA, and the solicitor so is a very worrying time ahead
 
Re: Need to pull out of sale: Purchaser signed contracts but we have not signed anyth

Hi suzyann

I am less concerned about a buy to let. The disruption can be expressed in pure financial terms. I would be more concerned about a family involved in selling their own home.

Brendan
 
Contracts don't necessarily have to be evidenced in writing. If there is an offer which is accepted and consideration passes between the parties and if the parties also have the intention of forming a legal contract then a binding contract may exist. I believe this does not apply to the sale of land.
 
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