Urgent - Contracts signed but buyer wanting to pull out

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Art

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The contracts for the house I was selling were signed on the 16th of April. The purchaser's solicitor had included in writing a clause in the contract stating that the contract was conditional on loan approval. This was despite my solicitor having been told that mortgage approval had been obtained. When the contracts were signed a letter was sent to the purchaser'solicitor stating that as far as we (the vendor) was concerned there should have been no conditions in the contract and that we considered them to be unconditional. We heard nothing until yesterday when the auctioneer rang and told me that the purchaser was pulling out. The solicitors have been in contact and as far as my solicitor is concerned the purchaser cannot pull out because she did contest the claim outlined in my solicitors letter stating that the contracts were deemed by us to be unconditional. Of course the purchasers solicitor is insistent that the contracts were conditional.

Has anyone else been in a similar situation? Is my solicitor correct? Thanks
 
These are notoriously difficult cases. You can argue either way BUT my view is that they were conditional, Purchasers had not backed down on their loan approval clause and that if you try to force the issue that you will lose.


It is very obvious that the market is very shaky and that vendors feel threatened and purchasers feel nervy on the one hand but also in a stronger position than before.

mf
 
mf1 said:
Purchasers had not backed down on their loan approval clause and that if you try to force the issue that you will lose.

mf
Click to expand...

I accept this and thanks for your swift response. Yet nonetheless why did they not respond to the letter than was sent from my solicitor sent over 3 weeks ago stating that we deemed the contracts to be unconditional? Surely if it went to court a judge would be asking why there was no response forthcoming
 
I agree with MF1. Failure to dispute an assertion is not by any means an agreement with it, esp. where you have already asserted the contrary. Otherwise, you just have an 'oh yes it is\oh no it isn't' dialogue, with the person who had the last word claiming to have agreement.
 
Yes but surely the fact that it has taken 3 weeks to make an assertion to the contrary has to count for something. Also would the fact that my solicitor was verbally informed over the phone that they had got mortgage approval not add to my case?
 
Art,
This case - if pushed - will of course ultimately resolve itself upon the exact facts, of which we have only the barest outline. MF1 and I have both given you an opinion that a case like this is very difficult to win. You can persist, and if you do you may well win, but at what cost? Contrary to popular belief, most lawyers want to avoid expensive court proceedings. Unless your buyer had agreed to pay a price which was insanely over the odds, I cannot see how it would be worth your while to risk the cost of legal proceedings. Take your solicitors advice, but make it clear to your solicitor that you are pragmatic and that you want to pursue the least-cost (without being trampled upon) outcome.
 
Thanks for this MOB. I appreciate your honest and frank advice. I will however have to proceed with the case if it comes to that.
 
Stop wasting your time, the buyer's gone, its frustrating but you will not succeed, you never had a contract.
 
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