To think there should be a fine for vendors pulling out of a property buy/sell process last minute?

[BrokenCookies]

Just had this happen. Pregnant, strung along for months, collapsed a sizable chain because a couple of immature children think it's acceptable to pull out the day of exchange. I'm broken hearted, wasted all my money and savings and I have never felt so much hatred for two strangers. From speaking to the agent they have no genuine reason, just playing a bit of a game with us all I guess. How is this legal? It is the cruelest thing anyone has ever done to my family and I don't want to start it all again but now I have to with way less money. We had spent months getting our house ready for them as their first home, deep cleaning, painting, repairing.. turns out they never deserved any of it. It's really knocked me and I have no faith in anything now or people but I have to just get on with it :(

Yanbu - there should be a fine to stop this from being possible after a certain point.
Yabu - it's okay for people to do this.

That's not true. You pay a 2%ish 'booking deposit' on sale agreed day, which is completely refundable for any reason. You pay 10% on exchange of contracts, and that's non-refundable. Then the balance on completion.

I've had the same booking deposit on 3 different houses in the last 2 months 🙄

Sounds to me like the booking deposit is completely pointless.

Some-not all-searches are (imo) a bit bonkers. Like, is a motorway going to be built through this terraced street, one of dozens in a row? Obviously, some searches are extremely important. It took our buyer 6 weeks to get his searches back because it was ‘holiday season’ yet our side, despite our solicitor being on annual leave, somehow managed to keep everything going at a great pace. I know it’s not the most essential system in the UK, but it needs a serious overhaul (imo!)

It’s been 20 years since I bought a house there but the other thing that was good was they don’t use solicitors but separate ‘escrow’ companies that just get on with it all quickly and efficiently without the ‘black hole’ that seems to happen in the UK. I’m sure there are crappy versions of escrow companies, but the two we used back then weren’t really good, just a transactional thing that they got on with.

Omg, do you think so? Panicking because we exchanged today, finally! I think I’d tell them where to go if they did that, that would be the height of cf.

Stuff like HS2 and new roads can take whole sections of towns out.

Worse is if something like that is built in close proximity.

This is a big slap in the face for you OP.

However, it's a lesson in how society works. Nobody gives a shit about anyone but themselves. They might pretend to, but when push comes to shove, they really don't. People are immoral, selfish, greedy, the whole lot. Never trust anyone. I'm about 15 years older than you, but would have felt similarly to you at your age.

Not really. The Scottish system used to be far stricter years ago, and there was no way anyone buyer or seller could pull out last minute without hefty penalties, but unfortunately this was changed and everyone is now free to muck each other around now without much consequence. I should know I have both been on the receiving end and the other end where I backed out last minute just because I could, the buyer actually left a teary message on my answerphone.

@BrokenCookies - This happened to us as well! I was heavily pregnant and the people buying our property strung us along for months, kept saying their mortgage was taking forever to be approved, in the end, the buyer pulled out with no reason given
I was so stressed with it all as we wanted to be in our new home before the baby arrived. Our Estate Agents were furious and even bought us flowers!!
It is so unfair the way the system is in this country.... We ended up accepting a new offer quite quickly afterwards but the stress they caused was immeasurable!
I wish you lots of luck and hopefully a new buyer will come along quickly for you x

True, but we’d have heard had something significant been planned.

That’s a pretty terrible outlook. Plenty of people use conveyancing solicitors who aren’t even local to where the sale is so why on earth would they know and sign off that there are no infrastructure plans impacting the property unless they’ve actually looked into it.

This happened to us, though it was during COVID and admittedly there was a lot of uncertainty, and I think they were just older and nervous about the change.

The irony is, that was nearly 4 years ago, and the house is still on the market! They did put it back on about a year later, at nearly £200k more than the offer they accepted from us. They did ring to let us know, but we weren’t interested at that price. They accepted another offer and that seems to have fallen through. It’s now still for sale, at £300k more than our offer. I think they either clearly don’t want to sell or are delusional or both.

? I know the area. No way is anyone planning a motorway or somesuch through the area I’m selling in: why is that a ‘terrible outlook’? Obviously if I didn’t know the area, I’d be instructing searches if I were buying. Buyer currently lives round the corner, has had his notice on his rented property.

But quite obviously that isn’t the case for all sales which is why there is a minimum requirement of due diligence.

Obviously! I doubt very much you can pick and choose, anyway. Searches no doubt are standard unless it's an agricultural property, for example. Or on a flood plain etc.

There are basic and enhanced searches you can choose which to have.

What many people do not realise is the searches will only apply to the property, the wider area is not looked at - there are some advanced searches which will look further afield but I would never just rely on the searches to show up anything which is likely to affect the property. Due diligence, searching online portals, local news, speaking to local and local knowledge will find out any plans or rumours to something being planned.

It’s not really. Either party can still pull out until exchange it’s just more rare. I’ve had buyers pull out in Scotland before the exchange.

Horrified that this is so common. I ended up going to sleep yesterday with a migraine, but trying to get things moving today. Thanks everyone for your replies. Someone posted about contacting the first buyer, I will look into that as it would be lovely if she could now have it.

Absolutely disappointing and frustrating for you OP but there are all sorts of legitimate reasons for them to pull out and they aren’t obliged to say why

years ago a personal tragedy meant we pulled out of a house purchase, and it wasn’t something we wanted to tell just anyone about, definitely not the estate agent etc

by that point we had lost money to the process and so I can’t imagine it’s a decision anyone takes lightly

You can get insurance for this now. It’s 69 for sale and 69 for purchase. I know you shouldn’t have to. I know it Dose’nt help emotionally but at least you get some money to cover all you have laid out. The government need to get this whole house buying malarkey sorted. I’m in a small chain only 4 of us all cash buyers 10 weeks in and still nothing. Solicitors are the main problem lazy greedy bunch of twats they all need a rocket up their arses. If that all had to work to a deadline of 7 days to reply to each query things would stop collapsing

Depends on circumstances if there is no reason then definitely should be a fine but say a partner suddenly passes so cannot afford anymore etc then maybe discretion could be used xx

OP you have my sympathies, it must be horrendous.
I live in an EU country, and here, once you sign the agreement to buy three months later, you are legally bound by the contract. If either party pulls out they have to pay a fine.
It’s absolutely the way it should be!
I just hope that with all the work you’ve put into your house, that you find another buyer straight away 🤞🏻

That is actually the same here though, as soon as contracts are exchanged each party is contracted to buy or sell, with severe financial penalties if completion does not take place or is delayed.

Absolutely! We just bought in Spain and would have lost 10% if we hadn’t completed. The system here is bonkers with the chains. Not sure how it works everywhere else but they seem to manage. And all the costs you have forked out. So sorry for you!

If it was a valid reason, presumably they would have stated that reason?