Should we pull out?

[NameChangeForProperty]

Bid on a property at auction and got accepted. We are buying cash. Is a really good investment. Have seen it, with contractors on hand to let us know it's all structurally sound etc.

Only problem is the current seller does not own the property and is going to complete the same day as us. It sounds weird to us and we're thinking of pulling out.

Solicitor says it means there will be a delay in title deeds being transferred to us, as they have to be transferred to seller first. This will mean we can't get a mortgage against the property or resell.

Potentially not a huge issue but it could take a year apparently for it all to be transferred over and I feel uneasy about it.

We're thinking of pulling out, would lose our deposit.

Legal pack is a bit misleading, it says the current seller has had the property less than 6 months so titles aren't in his name - but actually they don't legally own the property at all. We're a bit confused. It's called a back to back sale.

Wwyd?

You can ask land registry to expedite it. And you can also lodge it all at once. So seller a to seller b and then seller b to you. It can be done all at the same time.

How can they sell it if they don't own it? I'm i being thick?

Yeh the solicitor did say this. It just got my back up as the whole thing sounds weird

No I don't understand either that's probably where I'm going wrong!

I am also confused by this thread and thinking how can they sell it if they don't own it....

It’s done more often than you realise

Is it a probate property or something? So needs to be properly transferred to them to sell but they know it's been left to them?

I have been the seller in this situation, it completed same day. In my case it was bought off plan so i had paid a deposit but couldn't go thro with purchase in the end. The market had gone up since then, so rather than lose £10k, i sold it on thro an estate agent and made £10k. Was such a relief, i can tell you.

What was the 6 minths about? Its not in probate or anything?

Oh, that does make me feel better. I'd never heard of it before. What reasons do ppl do it for?

How did it work then? The buyers funds went to you and then straight on to the original seller?

Also how long did it take the deeds to transfer over?

As far as we know not probate property. But we've been given little info on the seller

Are you sure they’ve paid the same for the property as you have or are they making something out of your sale?

The reason for the no mortgage is because the seller to you will have owned it less than 6 months at completion, mortgage lenders don't like that.

It can all be registered at the same time, if it's currently unregistered property then yes it will take quite a while to process by land registry but a request to expedite can be made.

It's not that unusual or any real reason not to do it, but more checks and burden on your solicitor as they need it's on them to ensure it's genuine, there's no money laundering issues, and that the sale to the seller is correctly done so they can rely on their transfer to onwards sell to you.

The solicitors will use undertakings and releases between their firms for moving the monies and attending to completion, it's not that dissimilar to buying in a chain really with multiple properties selling and buying on the same completion date.

The transfer to the seller then needs to be registered and yours will sit in behind that and then be done.

This is assuming it's England, will be different if elsewhere

Presumably making something out of the sale

That makes sense, thank you. Sounds less scary now!

Ah okay. Thanks that makes sense

Do you know roughly what "quite a while" would be?

Wrong thread? 😂

you are meant to be able to rely on the information in the legal pack at auction. If something in there is incorrect then there’s a chance you don’t lose your deposit.