Price Agreed paid half deposit

M

monkeyhp

Guest
Hi there,

We have recently put down a part deposit and are waiting to sign the contracts within the 21 days (then we would pay the remaining deposit).

However during the waiting time there has been a severe price drop on another new development in the area resulting in the fact that we can get a lot more for our money "across the road" so to speak.

My question is can we renogatiate a different price with the current ea? or if we pull out will we incur any losses? Is our part deposit refundable?

We would love just to re-negotiate but I dont think the ea would even look at us if we started messing around.


EDIT: Just seen the other posts in relation to this problem and it seems it is frowned upon. However im buying an house here and feel that due to the current climate and the price drops the EA should be prepared to do their job and understand where the buyer is coming from if he/she wants to renegotiate.

Anyway throw your opinions here, Im going to ring her today and see if I can get some movement.


Thanks in advance
 
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1. Renegotiate any time up until you sign the contracts. Until then you are free to do whatever you want.

2. If a purchaser wants to renegotiate the price after signing contracts, that is called gazundering. If a vendor is not in a hurry they will sue the gazunderer and keep the deposit. If the vendor is in difficulties, they may have to accept the lower offer because even though technically they are entitled to hold a purchaser to a contracted price, they may have no alternative.

I regard gazundering as worse than the lowest form of life. It is the worst form of screwing someone over - it is not illegal, it is a breach of contract but the inherent difficulty is that people may be trapped into no alternative.

mf


mf
 
mf1 said:
1. Renegotiate any time up until you sign the contracts. Until then you are free to do whatever you want.

2. If a purchaser wants to renegotiate the price after signing contracts, that is called gazundering. If a vendor is not in a hurry they will sue the gazunderer and keep the deposit. If the vendor is in difficulties, they may have to accept the lower offer because even though technically they are entitled to hold a purchaser to a contracted price, they may have no alternative.

I regard gazundering as worse than the lowest form of life. It is the worst form of screwing someone over - it is not illegal, it is a breach of contract but the inherent difficulty is that people may be trapped into no alternative.
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The OP has not signed any contracts so your advice does not apply to him/her.
 
Thanks for the replies, so in summary if you havent signed any contracts then you can negotiate without any problems.

Buit if you do sign and try and re-negotiate you will find yourself at the mercy of the ea, but it is not illegal.

btw We are talking 40 k price drop here, which is going to be a few years off the motgage.

Cheers
 
monkeyhp said:
Buit if you do sign and try and re-negotiate you will find yourself at the mercy of the ea, but it is not illegal.
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Not the Ea, the solicitors.

Now is the time to re-negotiate, just ring up and request your deposit back, saying you're pulling out. No need to give a reason even.
 
Lobby said:
...
Now is the time to re-negotiate, just ring up and request your deposit back, saying you're pulling out. No need to give a reason even.
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As there are no contracts in place this is all you need to do, but if they ask for a reason tell them there is better value available elsewhere. They may come back with a more attractive offer...
 
monkeyhp said:
if you havent signed any contracts then you can negotiate without any problems.
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Yes, and you can get your deposit back from EA.

Don't be shy about discussing with EA that you are considering the fact that the agreed purchase price looks very high now that "houses across the road etc" are cheaper. He probably used a similar sales pitch when you were buying "look at the value here compared to that house across the road etc "



http://www.askaboutmoney.com/showthread.php?p=208532
 
Cheers lads/lassies, been a great help. Cant thank the forum enough even before I regged I got lots of handy info.

Ill post here on how it goes, in the current climate im sure there will be a few more people in the same boat

Thanks
 
Purple said:
mf1, How come it's not illegal to do this after the contract is signed?
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Breach of contract is not a crime so you won't be prosecuted for it. It is, however, a loathsome form of behaviour.


"The OP has not signed any contracts so your advice does not apply to him/her. "

OP did not seem clear and I was merely pointing out the matter of before and after contracts are signed.


mf
 
mf1 said:
I regard gazundering as worse than the lowest form of life. It is the worst form of screwing someone over - it is not illegal, it is a breach of contract but the inherent difficulty is that people may be trapped into no alternative.

mf
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that's how you set the bar for forms of life? worse than child abusers, worse than war criminals. just a little bit silly. OP you should regard such comments with a pince of salt
 
groom said:
that's how you set the bar for forms of life? worse than child abusers, worse than war criminals. just a little bit silly. OP you should regard such comments with a pince of salt
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Read it in the context of a website/information board called Askaboutmoney.

mf
 
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