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Original poster

Help! Property related

18 replies

InProgress · 14/12/2018 14:35

I've posted here for traffic.

My estate agent found me a buyer and my buyer wants to agree to exchange contracts before Christmas.

I do not have a property to move into and want to wait to agree to exchange until after Christmas.

My estate agent has said that they have a ready willing and able buyer and that I need to agree to exchange contracts or a withdrawal fee is due to them immediately. The buyer has threatened to pull out if not agreed before Christmas

The fee for a sale is £2500. The fee to withdraw is £3k.

I've said I haven't agreed to withdraw, I want to wait until I have somewhere to go to. They said I shouldn't have progressed the sale and want their money now.

What on earth do I do? My head is a mess

OP posts:
Bombardier25966 · 14/12/2018 14:37

What does your contract say about you failing to complete the sale?

When was the purchase first agreed, presumably a while ago?

Sirzy · 14/12/2018 14:39

What does your contract say?

When you agreed to the sale what was your plan for moving surely you had something ready to line up?

LIZS · 14/12/2018 14:44

Never heard of a withdrawal fee, are you in England?

Bombardier25966 · 14/12/2018 14:48

Never heard of a withdrawal fee, are you in England?

They are used in English contracts when one party chooses to withdraw from an agreed sale, or acts so unreasonably that the sale can no longer proceed. I have a feeling the latter could apply here.

Original poster
InProgress · 14/12/2018 14:49

yes in England

I found a house with same estate agent but had to withdraw. I've had no other house then.

I think I need to speak to someone legal :(

OP posts:
Bombardier25966 · 14/12/2018 14:50

Why did you have to withdraw?

When was the sale agreed?

Original poster
InProgress · 14/12/2018 14:52

I don't have an issue with the 50% withdrawal fee or marketing fee £450- that's really clear in the contract.

I do have an issue with the "early termination compensation" fee which looks like it doesn't apply and also includes another marketing fee of £450.

OP posts:
Original poster
InProgress · 14/12/2018 14:55

I haven't withdrawn, the first I knew about exchange of contracts was 3 weeks ago and my DC is in for an operation this week so isn't suitable.

estate agents said I needed to exchange by Christmas or I'd be in breach of contract

OP posts:
LIZS · 14/12/2018 14:57

Whose contract? It would be unusual to have a fixed time limit to exchange, although a buyer might want to, let alone it be legally enforceable - all sorts of issues might cause delays. Could you exchange with a delayed completion date, to allow you time to find another property either to rent or buy?

Original poster
InProgress · 14/12/2018 16:34

My contract with them.

OP posts:
Mumski45 · 14/12/2018 17:02

I think the contract they are talking about is the contract with the EA for finding you a buyer and not with the buyer for the sale of the house. You have no obligation to the buyer until exchange of contracts. I'm not sure how the EA can force you to exchange in a rush before Xmas when you have nowhere to go. It doesn't make much sense. Is the withdrawal you mention a withdrawal of your house from the market or from the arrangement you have with them to market your property. Are you considering putting it in the market with a different agent? Or do they think that you are going to take the house off the market then sell to the buyer they have found without their help as that would be why they might expect a withdrawal fee.

Mumski45 · 14/12/2018 17:04

What ever you do don't exchange unless you have somewhere to go to either to buy or to rent as that would be daft, you don't know what may happen after exchange and you will then be committed to completion.

Original poster
InProgress · 14/12/2018 17:35

Apologies I know I'm not sounding very articulate. I've calmed down a little.

The contract is between myself and the EA for finding me a buyer. No I'm not intending to go with another buyer. I wasn't intending to withdraw my house from the market either. I just don't want to agree to exchange contracts before I have somewhere to go.

The EA say that the buyer is threatening to withdraw and they would charge me this withdrawal fee if I don't agree to exchange. It does all feel very bully boy tactics. After all if I did have a house I had offered on and that seller pulled out then surely it would be the same position?

OP posts:
carrie74 · 14/12/2018 17:36

What is the date of completion they are proposing? This will be in the contract, so if it's 31st January, say, doesn't that give you time to find at least somewhere to rent? I guess it depends on the market around you, but at the moment, I think I'd be delighted I had a buyer so keen to proceed. If they want to exchange by Xmas then complete on 31st December (say), then that would make it very difficult for you, and I think you (your solicitor) would be absolutely within your rights to demand a later completion date.

Original poster
InProgress · 14/12/2018 17:36

That should be I'm not intending to go with another EA.

OP posts:
Original poster
InProgress · 14/12/2018 17:42

They want to exchange next week. They did want to exchange and complete last week which gave me a week to find somewhere to go to.

I'm reluctant to go into any more details of my buyers circumstances so I'll simply say there's no chain involved.

OP posts:
LIZS · 14/12/2018 18:03

Ask your solicitor to check the contract and write to the EA to "clarify" that this clause is irrelevant.

Bombardier25966 · 14/12/2018 18:12

Is this the same buyer you had some months ago, or did that sale fall through too?

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