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.

Check how much it costs compared to what it actually allows to recover though.
Maybe there are good ones, but one I saw costed around 1200 for six months, and dependently on the reasons it fell through it could end up paying too little to recover even the cost of the insurance itself.

Absolutely there should be some penalty, however we had 2 of the type that try to beat you down in price at the last minute (they do it bc they know you are desperate to move and have spent loads on sale and purchase). We pulled out bc we don't do business like that, nor with people who behave rhat way. It did cost us dearly, but the agent was very clear after that and we didn't get timewasters (maybe we were lucky).

I'm not sure how to have a system where the person pulling out gets penalised without vendors refusing to sell for previously agreed price also being fined.

I obviously meant when offers are accepted 🙄

Okay maybe I don’t know the ins and outs of the exact process there might be other steps but it is definitely much earlier when you have contracts and you’ll get a penalty if you pull out. It is absolutely true that offers go through solicitors not just an informal phone call with an estate agent. People know what they’re offering on because the seller has to have the home report. Unlike in England where you don’t really know what you’re offering on until you survey it yourself. I know plenty of family and friends in Scotland who’ve done it and they absolutely do not have the issue of chains collapsing a week before you’re expecting to move.

I am afraid it is not true that chains don't collapse in Scotland
It is not yet as common as it is in England but unfortunately it does happen
(Conveyancing partner supervising 50 + transactions a week)
I am glad your friends have not been affected

Okay and how many of those fall through?at what stage? I didn’t say it NEVER happens (though you’re right of all the people I know in Scotland who’ve purchased I’ve never known it to fall through). I’m saying there’s a much earlier point where you’d pay a penalty if you did pull out. And I certainly haven’t heard anyone pull out just because you’ve changed your mind in Scotland, Which I’ve known multiple people have that happen to in England. If you know so much you could just say the actual process instead of just saying I’m wrong? Maybe you just don’t know how bad it is in England?

Personally yes it’s bloomin rude, thoughtless of them. There should be some recompense. I think it should be like Scotland, sealed bids, but also the vendors should have the house survey done (level 2) before marketing their property,I’ve spent over a grand on 2 properties now, the second I put an offer on, accepted but now they’re not sending the memo of sale until they’ve found somewhere, so I’m left in limbo.
I think there will be something and someone better out there for you OP don’t lose hope.

Anyone on this thread possibly in the future because this has happened to them - some good news! I have a new buyer :) hoping things won't take forever to process but it's something.

"Surely".

In the same way no one has surely ever got a dodgy MOT.

The system in Scotland has changed significantly in the last 15 years or so (since the 2008 crash )
Missives used to be concluded at a very early stage
Thst is certainly not the case now
There is still a culture in Scotland that people don't pull out ,but legally now they can ,and do
I said in my last post that it did not happen as often as it does in England (where I am also qualified )
You don't have to believe me ,but my experience and knowledge of what is actually happening might be useful to others

I am glad for you.

Thank you so very much, the speedy turnaround has cheered me up a lot even if it takes a while now. I wasn't expecting a new buyer yet, they're vetted aswell and had a crap experience apparently so very keen. My house is similar to one they lost. I really am glad for my estate agent, they have worked really hard for us. We have started looking at other houses again and got some bits sorted about the logistics of things.

But even after offers are accepted, either side can pull out until the missives are actually signed

I don’t see how that can be the same thing. Only one person gets to see the MOT. It only says the car was in roadworthy condition on the day it was tested.

The HomeReport is seen by maybe dozens of potential purchasers, and most people go to view anyway, so if the scabby roof, damaged render, damp patches, rotting planks in the garage or whatever aren’t in the Home Report on which authority they decided to view, there will be repercussions. The solicitor also goes through the Home Report. No surveyor will put his name to a fraudulent HR. It’s a set form with the EPC and a questionnaire filled in by the home owner. I’m house hunting just now, and it’s the same 2 surveyors companies for the hundreds of houses I’ve looked at online.

I’ve been looking at houses in Scotland for the past year, toying at first, more seriously now and there are a lot falling through. They are on Rightmove etc for sale, then going to closing date, Under Offer, then SOLD subject to conditions. They disappear, to reappear soon after . Often at a lower price. The house I’m living in did that in 2016/ 17 . I bought it when it came back on after the sale fell through.

It's the same thing in the respect that anywhere where there are large sums of money at stake there is fraud and corruption.

The only variation is how much the government decides to do about it.

I quite agree OP. For our last house sale, the buyers had pulled out of a few previous house purchases, and so the estate agent put forward the idea that we would only accept their offer on the proviso that, failing a survey indicating a certain amount needed spending on the house, they would be held liable for our costs. This was drawn up with solicitors, and made the whole process easier. I think this should always be the case.

But that can happen whichever side does the checking. Loads of cheapskate conveyancers who don't do proper checks, and surveyors with pre-filled survey forms are out there. I think having a full survey with a reputable company would be a selling point, if it was made law that sellers had to create a pack. Just like having certificates for building work. It would be a simpler system, no more open to fraud than the current one, if it was properly set up, and a whole lot quicker and more reliable.

I certainly think once mortgage ( if needed) sorted, survey done, searches all back, enquiries completed then cost of the buyers solicitors and searches non refundable needs to be handed over- any pulling out then they lose that money - if it completes ok then that comes off the monies due.

No, because one side wants the survey to be as good as possible to maximise the value of their asset, whereas the other wants it to be as correct as possible to ensure that they are getting what they are paying for.

There is nothing wrong with how houses are purchased and sold in the UK, it only becomes bad when someone is affected by the sale or purchase falling through.

Read the numerous MN threads when the answers given are "pull out". Too many people want to stop people pulling out if it affects them, but to have flexibility themselves to withdraw if they wish.

It is a business transaction which once contracts are exchanged is legally binding with penalties for breach of contract. The only change I would suggest is a move back to a longer period between exchange and completion, but even that should not be mandatory rather advised to be sensible.

The fact there has never been a serious move to change the system can't always be taken as proof the system works or is equitable.

There was a change not that long ago with the Home Packs (or whatever they were called) it didn't work. When people are probably undertaking the largest financial transaction in their lifetime they should only be committed to purchase or sell when a legally binding contract is in place - we have that when contracts are exchanged, up until that point each party can withdraw for whatever reason.

Why didn't it work ?

I mean I get the idea that it would be unpopular with sellers as they don't want the extra cost.

I get the idea that mortgage issuers would not want to rely on survey information provided by a vested interest and would probably commission their own survey anyway.

But I do think it would speed up the process, to at least provide some up front information that buyers could take as a general impression, and not discover major horrors some way down the line.

My guess is it was abandoned because it was not in sellers interest. Costing money, and also making it more difficult for them to cover up various problems.

There is of course nothing to stop a seller today compiling their own "homebuyers pack" to issue to potential purchasers, although there may be some issues with information sharing of things like surveys to be resolved.

You have answered the question.

It should always be caveat emptor when making such an expensive purchase such as property, in fact for every purchase. Making the process quicker should not be an aim, making it more efficient should be - rushing a purchase or sale will likely lead to mistakes or missed issues, this is not in anyone's interest.

The efficiency should come from such issues as quicker turn round of searches, solicitors and surveyors dealing with issues quicker - too many people use cheap online conveyancers and wonder why problems occur.

People should also educate themselves (the internet has vast amounts of information) so they are aware, for example an older house (even just a year old) may not meet the latest building regulations rather than insisting the vendors do work to ensure it does etc.

If I am buying or selling, I will instruct my solicitor to exchange contracts when I have fully satisfied everything is in order to proceed, up until that point I reserve the right to withdraw from the sale or purchase. Just adding financial penalties and more regulations is likely to cause more delays.