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.

I get this, they had everything though and had done for ages. Like I say, we were all chasing them regularly just for them to then pretend everything was fine when they could have just saved us loads of time sooner. We paid for and actioned every single request that they had, all at our expense even when they didn't make sense, insurances for things, services, all sorts and they must have known they weren't committed deep down. Why do that to us? Also they know I'm pregnant, I'm not saying I'm unwell or deserve special treatment but all the time we're ghosted with no assurance of a date to exchange the due date gets closer. Its just hideously cruel :(

The Homebuyers Information Pack, which would have required the vendor to get the survey and searches done before marketing the house, failed because the mortgage companies said they wouldn’t accept the vendor’s survey and searches and would require borrowers to get another one done anyway, making the whole thing pointless. The government should have forced them, but didn’t. It would have been a massive improvement.

I feel for you, OP. We’re selling a property at the moment and the whole thing has ground to a halt because the buyer’s solicitor went underground and then quit, so now we have to wait for a new one to get up to speed. The estate agent says they have dozens of sales being held up because of this one firm.

It’s unconditional after exchange of contracts.

Some personal reasons could affect things though - a cancer diagnosis might affect your income, so moving house wouldn’t be viable.

Thought this for years. Just pulling should mean that they are liable for all expenses up and down the chain.

I would assume that their two week holiday was actually them looking elsewhere. They will be fawning all over another house without a second thought to what they’ve done to you. With a bit of luck they will lose their dream house last minute too 😆

@ResultsMayVary

I find it bizarre that the sale doesn't become unconditional after a certain point

• it does that was today?

I thought this! They probably will unfortunately given how common this whole thing seems, very ruthless. It's not the legal transaction people think it is, you're dealing with other people's lives and everything that goes with it. I feel so sorry for everyone else in the chain too.

It only becomes legally binding at exchange of contracts so if you don't complete (completion) the buyer should be paying you a penalty. As per terms of the exchange of contracts. Prior to exchange of contracts you can pull out, people do this for guzumping or under offering.

It’s shit, it happened to us last year. Fortunately we could sell some of our surveys on that we had done in the property we wanted to move to. However it’s not the end of the world and a bit of perspective is needed. If it’s the worst thing that has ever happened to you then you have been extremely blessed in life.

Don’t be idiotic, you know the OP was referencing their lack of maturity. Given the situation, I don’t think sarcasm/light hearted is appropriate.

I absolutely agree, @BrokenCookies it should be more like the Scottish system, which appears far more sensible. We had a buyer withdraw this year, it’s cost a fortune. Had the same with our first property, multiple buyers ‘changed their mind’ last minute. It’s torturous. I hope you get a good buyer soon.

The conveyancing is taking so long at the moment that it gives people loads of time to have second thoughts they might be waiting to see if interest rates are cut. Or it might be that one of them is about to pull out the relationship

You did the work when you were less pregnant so easier for you now a bit longer and for whoever does buy it.

Hope someone comes along soon.

No it's not ok in the slightest.

What was their exact reason?

I agree with some form of deposit type scheme but it should also apply to both buyer and sellers. So that if after accepting an offer the seller backs out because they have subsequently received a higher offer then the seller pays the buyer the deposit to cover legal and survey costs etc.

Yes, I think that there should be a point (after surveys and when finance is in place) that the transaction should be legally binding. One way would be for sellers to have a full survey ready for buyers to see so they know what they are buying and a deposit paid which would be lost if anyone pulls out.

I've had the same. Exchange was also 2 days before completion so the house was packed up up, removals booked. We had given up our jobs as we were moving area. It cost us £7000 in all. Not even a sorry, they just pulled our as they 'changed their minds'. Arseholes.

I remember the feeling so well, it was like I was going to collapse. The person who was buying from us had given notice on her rental and was technically homeless, she was sending us abusive messages for weeks.

Yes I think that there should be a stage in the process where you sign a "letter of intent" which says "I will buy this house for x price" and the only reasons for pulling out after that are poor survey (where the parties can't agree a lower price to reflect the results of the survey) or the buyer (or seller) losing their job or receiving a serious illness diagnosis/dying suddenly. If you pull out at that stage for any other reason you have to pay a 5% fee to cover legal costs etc. I wouldn't have thought that it would be that hard to implement.

I think we found the immature child.

I think that has been suggested before but people said that buyers would not trust a seller's survey. I am not sure why, if it is done by an independent surveyor.

It does in Scotland. The system is totally different and here the exchange of contracts is known as "completing the missives". Every sale/purchase is different but the last time we bought here (and sold in England at the same time), we offered at the start of November, the offer was accepted and the missives were concluded at the end of November. Our moving date was set as 31st January.

After the missives were concluded for our purchase problems came to light with the property the sellers were buying - I'm not sure exactly what it was but something around planning permission or building control. They chose not to go ahead with their purchase. But because they had already concluded the missives with us on their sale, they had to go ahead with that or pay us a huge sum in compensation and fees. They ended up moving into rented.

I don't think I'd buy without paying for Home buyers protection insurance, it doesn't cost as much as all the money you lose if someone drops out late in the game.
We have a ridiculous buy/sell system.

And the other thing with the Scottish system is the sealed bids/offers over system.

I don't like the idea that eg a house is on the market at offers over £400K but actually you need to bid closer to £500K to get it. That doesn't seem very sensible either (and is something that has been creeping into the English system as well).

Can we overhaul both systems and use the best of each :)

I do also know that in recent years the system of concluding the missives very soon after offer accepted has slipped a bit, so it could be that concluding the missives and completion is close together, and there is still room for people to pull out.

Hmm I guess that is the downside of what i suggested above. You're happy enough to sell your house IF you have something to buy yourself, but if there is a problem with the house you want to buy you are a bit stuffed if you then have to compensate your buyer for pulling out of your sale.

I think OP is probably in England

In Scotland, we conclude missives (equivalent to exchanging contracts) at a far earlier stage. After that, the person who pulls out is liable for the other person's losses eg if buyer pulls out, they're liable to pay additional costs of re-marketing the property, and the shortfall if house ends up selling for a lower amount