Buyer messing around - delaying(15 Posts)
Any estate agents out there?
Am seriously going to lose the plot with our house sale. Am so stressed out and can't see any end to it.
We live in quite a unique property and knew it might be a little tricky to sell. However We accepted a cash offer end of Jan as believed it should be a relatively quick and painless process!
We were told that our buyer had sold a business, proceeds from which were being used to fund this purchase. We also knew that the funds would be with him in 3 monthly stages (as per fraud regulation) and the final payment would be made end of Feb. When the money didn't materialise end of Feb we were then told he would get it end of March and the sale could exchange then.
We are now 5 April and no further forward. Both solicitors ready to exchange but still the funds haven't been forwarded. Agent spoke to the wife this afternoon who apologised profusely and said they still hadn't received their final instalment and couldn't send funds across but it should happen imminently.
Am so frustrated, we have been delaying and delaying the purchase of our property because of this.
All the relevant paperwork/searches have been completed, we are literally now waiting.
Does this sound as terminal as I fear it might be? We were assured many times by our agent that receiving process from a business sale isn't an exact science (can't get my head round that one ). Agent also said he'd dealt with the buyer before and that he was totally open and straightforward.
Now just feel like we are being fed total BS and carefully need to consider our next move. Do we give an ultimatum and risk pissing him off? TBH am also just as pissed off with EA who seems to have completely lost any interest since the offer was agreed, which to me seems totally non-sensical!! Doesn't return calls, always out of office.
I would ask your solicitor to contact the buyer's solicitor and obtain a date by which their funds will be in place. Then give an ultimatum of by close of business the following date to have the funds with his solicitor.
Are you an EA? Does this situation sound plausible and have you come across it before?
phone estate agent boss or head office and complain about being ignored. If these lazy hair flickers want commission, they need to do some work.
and then issue ultimatum via your solicitor as above.
It sounds a bit odd (solicitor). Was it a share sale or an asset sale? Has anyone seen a copy of the agreement? Normally funds would be checked for money laundered as they would pass through both solicitors client accounts so the payment can be made in one lump sum. I'm an employment lawyer but worked on lots of corporate transactions. I don't recall seeing unconditional payments being made in separate tranches.
What I'm wondering is whether there was conditional deferred consideration dependant on e.g. business performance/planning permission for land development. However if there hasn't occurred as expected, he may have been paid less than he was expecting
You need to contact your solicitor and ask them to ask his solicitor to clarify in writing the source of his funds
I work in an EA - doesnt sound too bad to me - a straightforward transaction can take 3 months from start to finish and this has only gone just over 2 months. By all means chase estate agents and solicitors to make it happen asap but sounds like you need to hang on in there. Good luck.
Agree with gobbo (also a lawyer) there's really no money laundering reason why the funds would be paid like this - also nothing stopping your purchaser offering a conditional contract with a completion date x days after funds are received
The EA has spoken to seller this morning who has confessed that he is unsure when the 3rd payment will arrive but he expects it any day
We have told EA that unless we have a definite answer within a week it needs to go back on the market. But EA now says properties like ours aren't shifting at the moment
What is your EA's problem? If you were to put it back on the market the buyer can still exchange when his funds arrive (I smell a rat though), you are just covering your back and giving them a deadline.
You might want to point out that the EA works for you and that you will be paying their fee, not the buyer. Your buyers are taking the mick. They made an offer based on circumstances, which you accepted based on those circumstances. They can't just decide to move the goalposts now. You have to be firm with these sorts of people as they will keep taking advantage if you let them.
In those circumstances, I would put it back on the market and let the buyer know that if the funds appear, you can exchange. But if he's been waiting since February it's not looking likely!
I'm not an EA, OP, was just suggesting a strategy to try to push things along. Either your buyer has agreed to the way his business has been purchased from him in tranches and possibly his buyer has some funding issues, or he needs the rest of the purchase monies for your house from elsewhere and is not being truthful. Who knows and I doubt you will find out.
I also wonder if he has deliberately chosen not to receive all the proceeds of the sale of his business in one tax year. But pointless to speculate as it doesn't help. Put the house back on the market as a fall back. This is traditionally a good time of year for selling houses.
Your agent works for you so if you want it back on the market then they follow your instruction.
If the buyer wants to ensure that they get the house then they could get a mortgage / bridging loan rather than risk it falling through, so don't be fobbed off.
I had this with a supposed cash buyer. It turned out they were getting a mortgage, but were over 65 and our EA, when they found out, insisted on an explanation, particularly about how they would be raising a mortgage. Luckily they managed to get funds in place fairly quickly but I was getting cold feet by then.
Your EA works for you and should follow your instructions, not do what he wants to do. If your sale does go off (and I hope it does not) it sounds as if you may well be outside your contractual time with this EA and I would most certainly sack the lazy git and find a more pro-active agent who wants to sell your home. What is wrong with unique?
Squirming EA has said he will ask buyer to provide proof of funds before next Tuesday. If he can't, we're out
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