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AIBU?

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Original poster

To hope their chain collapses

138 replies

Berimbolo · 02/02/2019 07:36

I know I'm being childish, but so furious and I guess sad that we've been gazumped. I know whilst not fair, it is perfectly legal and naff all I can do about it apart from keep trying to outbid the others - but it is just so frustrating.

We're FTB, 15% deposit, solicitors and broker in place after a previous purchase fell through. House has been on for 3 months, reducing to OIEO as having to move asap as relocating.
We offered 5k over the base asking price, had to prove we were good for the money by sending bank statements and paying a £200 commitment fee to the estate agent before they'd even put our offer through. We get a call re people that had seen it twice but not offered until now, have stumped up 5k more than us but have nothing in place and are in a chain. Our vendors wanted us to match it, we told them no. Even the estate agent were saying they were mad for the sake of 5k.

So yes I'm petty and BU but part of me does hope their chain collapses or takes them an age to complete

OP posts:
FlipF · 02/02/2019 09:13

.

MrsJane · 02/02/2019 09:18

Never heard of a commitment fee?! Nor have I ever paid one and I've bought and sold a few times. Is that even legal??

Maybe the sellers aren't in a rush? Saying that, I'd choose a FTB over a chain for the sake of 5k. They may yet come crawling back to you.

babydreamer1 · 02/02/2019 09:25

Unless you've completely missed the part where the seller accepted your offer you haven't been gazumped.
From the way you explained it, you looked at a property and paid a commitment fee before you even had an offer accepted. Another purchaser who had previously viewed put an offer in and the seller accepted their offer as it was higher than yours. You were given the chance to up your offer by 5k to get the house you wanted, which would probably been about £10-£15 per month on your mortgage, but decided not to.
Most people don't put things in place until they get an offer accepted as there is no need.
I agree, it was stupid of them to reject your offer if they need a quick sale but equally, unless you absolutely couldn't raise another penny, I think it was daft of you not to just up the offer and get the house you so clearly wanted.

LakieLady · 02/02/2019 09:41

I thought charges to put offers through were illegal and that estate agents have to put all offers through?

I thought exactly the same, and I was an estate agent for a few years in the early 80s. Blush They are, without a doubt, among the least ethical low-lifes it has ever been my misfortune to meet, but even they accepted that it was not on to notify a vendor of all offers.

Anyway, OP, YANBU. And I wonder if the new purchaser's chain involves other properties sold by this agent, so that they stand to gain a lot in commission from this change? A lot more profit for them would be a powerful incentive.

It's also exactly the sort of unethical practice that made me walk out of my job one day. The sooner agents are properly regulated and the property sale system in England & Wales is changed to stop this sort of shite the better.

If they come back snivelling and try and get you to proceed, OP, charge them a £10k "commitment fee" and say they can knock it off the purchase price.

PeachesPlumsPears · 02/02/2019 09:42

In Scotland, once you’ve accepted an offer you’re bound to it, even if something better comes along.

In Australia too.

Once an offer is made and accepted by the seller, contracts are signed and the buyer has to pay 10% deposit to the seller's real estate agent to hold in trust. The buyers are legally bound to buy the house unless one of the conditions in the contract is not met eg purchase can be subject to finance being approved or building/pest inspection. Once the contract becomes unconditional the buyer can lose the 10% deposit if they pull out of the purchase.

The sellers are also legally bound to complete the sale and can be taken to court for reimbursement of buyer's expenses or they can be made to sell the house to the buyer.

Settlement is usually completed around 6 weeks after contract is exchanged.

SoupDragon · 02/02/2019 09:47

I agree that it sounds like you've just been out bid, not Nothing wrong with that at all.

CoraPirbright · 02/02/2019 10:07

So sorry you have missed out on the house but I always think these things happen for a reason. The reason for you could well be seeing a house next week that is far nicer and for the same/less money. I have my fingers crossed for you.

This committment fee sounds very strange to me. Worked for an estate agent years ago and it was a legal requirement to put all offers forward. This bunch were the most unscrupulous beings on the planet and even they didnt charge for this. I would demand that money back and report them to the ombudsman - I am sure it isnt legal!

RustyBear · 02/02/2019 10:13

Apparently asking for money from a buyer is not illegal, and no longer completely against the Property Ombudsman’s code of conduct (though discouraged) But there should be a written agreement concerning the circumstances in which the money should be returned or withheld. www.theguardian.com/money/2017/feb/04/estate-agents-ask-homebuyers-pay-up-pre-contract-deposit

Original poster
Berimbolo · 02/02/2019 10:16

Sorry for the delay, we're in the south east. They had accepted our offer and we'd instructed our solicitors.
The fee is apparently to show willing. We had to sign a contract where it stated the money would be kept if we pulled out

OP posts:
Original poster
Berimbolo · 02/02/2019 10:23

We've got the money back thankfully. Apologies for incorrectly using the gazumped term and I did post my frustration on the property board so apologies for that. I just had a crap sleep and woke so angry and was being petty with my post

OP posts:
JacquesHammer · 02/02/2019 10:24

Similar thing happened to us.

I’m typing this post from that self-same house which we purchased for £40k less than our original offer.

ChesterGreySideboard · 02/02/2019 10:25

But you haven’t pulled out, so I hope you get the money back.
The agents are utter shits.

Neverunderfed · 02/02/2019 10:29

That is the correct term, if they had accepted your offer. And it sucks for you.

Original poster
Berimbolo · 02/02/2019 10:30

We chose not to increase our offer due to feeling if the seller was happy to do this now then they would entertain the back and forth between us and the other family. We loved the house, so did they, but as FTB there's a limit and we were already putting down 15%. We felt we had to say no, we cannot afford emotionally or financially to get in to a bidding war

OP posts:
Fizzyhedgehog · 02/02/2019 10:46

It's their choice to do that...but it's a bit crap. Sorry you lost out but there'll be something else.

We've just sold our house due to us relocating. Lovely local family offered full asking price. No chain, ftb. Houses in our area don't come up very often..at least not affordable ones. Our estate agent told us two days later that someone else had put in a higher offer but they were in a chain and not yet ready to proceed. We stuck with the first offer. Anything else would have been greedy. It had been our first house, too, and we wanted it to go to someone local. Hope they are happy there. Loved that place.
We're moving to our new house in about 4 weeks. Fingers crossed it'll be equally lovely once it's been done up.

Menstruatrawr · 02/02/2019 11:05

We had this as first time buyers. 10 yrs on the flat still hasn’t increased much in value from the overly high offer. The flat we bought however went up 150k to nearly double what we paid. We’ve found these things work out

Frazzled2207 · 02/02/2019 11:11

Ah I was under the impression you were all packed up and ready to go. You've been outbid. It's not great but happens all the time.

londonrach · 02/02/2019 11:13

Do you get double your £200 fee back from the sellers. Report that op.

Urwotu8t · 02/02/2019 11:37

Why is everybody being so nasty about the sellers? They had two offers, and decided to accept the higher one. End of story, no need to wish misery and disaster on anyone.

JacquesHammer · 02/02/2019 11:41

They had two offers, and decided to accept the higher one

No. They accepted one offer, the process had begun and they then pulled out to accept a higher offer.

It’s an unpleasant thing to do for £5k.

As I said, chances are it may backfire.

Panicwiththebisto · 02/02/2019 11:45

Estate agents have such a bad rep for being slippery that say within the next week the new buyers can't proceed and have to drop out and the estate agent comes back to you and asks if your offer still stands, you can't be sure that it wasn't all a ruse to get you to offer more in the first place!

Urwotu8t · 02/02/2019 11:50

Where does it say that the offer was ever accepted?

ThanksItHasPockets · 02/02/2019 11:52

Sorry to say that commitment fees (also known as ‘pre-contract deposits’) are perfectly legal and permitted by the ombudsman as long as terms are made clear.

www.theguardian.com/money/2017/feb/04/estate-agents-ask-homebuyers-pay-up-pre-contract-deposit

JacquesHammer · 02/02/2019 11:57

Where does it say that the offer was ever accepted?

Post from the OP at 10.16

Urwotu8t · 02/02/2019 11:58

Ahh, missed that!