Claim fees back lost by gazumping?

[00100001]

Does anyone know if it's possible to take vendors to a small claims court to reclaim lost fees from the vendors (ghost)gazumping and ending up putting the house back on the market?

Vendor was due to sign on dotted line, when they decide it's now worth much more money (with no evidence.. other similar properties are still selling for similar agreed amount) and have asked us for an extra £40k (10% more than agreed price)

We have paid for searches, surveys, etc. The 5 month delay between agreeing to sell and contract exchange were due to vendors being slow to fill in forms, searches taking 4 weeks. So beyond our control.


Any thoughts?

[00100001]

12% more*

[Willow33]

So sorry you have been through this. This is why the UK property buying and selling system needs to be regulated. I have not heard of anyone going to court on this as a contract hasn't been signed yet. I think you may have to take the loss and next time put down a non refundable deposit down - something both sides can do.
However hopefully someone with more legal experience will be able to advise soon.

[Notyetthere]

I'm sorry that you are in this situation. As far as I can tell from, I'm afraid it won't be possible to claim back spent funds, unless exchange has already happened.

Call their bluff. Do you think someone else will actually pay the extra £40k?

[00100001]

I think they'd get more money than the original, but not the £40k. Plus nothing is stopping them pulling the same trick is a few months, is there?

[concertplayer]

Friends who have been through this advised us to take insurance
against this happening as unless the contracts have been exchanged
you have no come back. The insurance costs c£70 and covers
survey etc WHEN THE OTHER SIDE PULL OUT
They had 3 buyers who pulled out in total - what a nightmare but it happens.
Also you could have looked for a no-completion no-fee solicitor

[00100001]

Where woudl you get this type of insurance?

[specialsubject]

sadly not. If there was no exchange, there was no contract.

A decent solicitor will have done no complete no fee, although you've lost the search and survey money. Sorry.

[concertplayer]

We got ours at our Conveyancer's but I googled the web
and there is a site called Searchpoint.
Some solicitors offer it, others do not offer it .
However, the best thing is to find a solicitor who does no-completion
no fee.
It is has already been advised elsewhere on this topic that it is
best to get a solicitor rather than ( a cheaper conveyancer) as
better if legal problems arise- worth the extra

[Spickle]

Let your solicitors know that you're willing to sell the searches on to a new buyer and they will let the vendors solicitors know. You might claw back some funds at least.

Even if your solicitor has a no completion no fee scheme, this wouldn't include the cost of searches or surveys anyway, it would only relate to their own fees for the legal stuff.

[00100001]

Our conveyancer has already said we can sell the searches and possibly survey to any future buyers so that helps.


:)

[concertplayer]

The £70 insurance our friends took out covered surveys etc costs
up to £1,500 in fact

[HereIAm20]

The searches are only valid for 3 months though I understand so if they expire before the next exchange they will be of no use to the future purchaser if they've expired.