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Original poster

Help! Sold property to developer who wants planning permission first

83 replies

Louisa1962 · 05/10/2019 16:31

Please someone help me. Me and my family are in a bit of a mess (understatement).

I signed up with a local agent back in May after my online agent went bust. He soon found us a buyer in the shape of a local property developer, who has a number of properties in their portfolio.

They made a low end offer, which after great consideration we accepted- mostly because they were cash buyers and willing to move quickly. The only stipulation was that they wanted to convert our family home into flats, and therefore would proceed once they had gained planning permission to convert the property. They also wanted the property to be taken off the market. I was assured by the agent they had dealt with them before and were decent/reliable applicants. So we agreed.

After waiting 8 weeks for the usual planning process, plus a further 3 for architects to write up plans, the council refused planning permission on the conversion. The agent hasn’t been easy to get hold of, but when I last spoke to them on Friday they told me the buyers were making amendments to plans and will re-submit them to council.

However, in the meantime we have found a property to buy we love, and are not in the best financial position ourselves. What do I do now? Do I wait for the buyers to secure planning, which could still take many weeks? Or do I tell the agent I have waited around long enough and want the buyers to exchange and complete ASAP regardless of planning?

I haven’t been able to sleep worrying. I don’t want to lose buyers, I don’t have many other option if I do. But at the same time, I can’t wait around on a planning promise which could take many more weeks and still fail.

Any advice welcome! Thanks!

OP posts:

PigletJohn · 05/10/2019 16:38

Your "buyer" is not proceedable. Tell the agent that.

So put it back on the market.

Read the terms of the contract you signed with the agent. It may say that you have to pay them commission if they introduce a proceedable buyer. But they have not done that. See if it says anything else.

BTW you can't believe anything an agent says. Property developers are less reliable than agents.

LIZS · 05/10/2019 16:55

Is the potential buyer a friend of agent by any chance? Tbh you could be waiting until new year now and then be a no. What were the objections? If you need to move soon put it back on the market, if it is such a development opportunity someone else may appear.

Original poster

Louisa1962 · 05/10/2019 17:05

I will have to read my TOC’s with the agent. They’ve probably cornered me with some sort of get out fee no doubt

I feel such an idiot. First rule, never believe something that sounds too good to be true. The agent just seemed so confident planning would pass that I felt it was a good move.

OP posts:

Original poster

Louisa1962 · 05/10/2019 17:10

The agent found these developers, and has dealt with them before. No doubt they’re either friends or historic business associates in one way or another.

My problem now is I’ve kind of put all my eggs in one basket, agreeing to take it off the market with the certainty of planning. I don’t get why they would put forward plans which they knew would fail? Surely it’s costing them time and money? The objections were from a neighbour claiming it was loss of a family home. But there may be other objections which I'm not aware of.

Do you think if I asked the agent to get the buyers to just exchange and complete they will do so? Or is that fantasy on my part? Will it scare them off?

OP posts:

superram · 05/10/2019 17:12

You were a bit naive but understandable. Get your contract out and ring on Monday.

LIZS · 05/10/2019 17:13

The decision documents will be online. Likely there are issues such as parking, out of keeping with area etc. Unless a revised scheme addresses it they are likely to get same answer.

stupidboyman · 05/10/2019 17:16

You need to read your contract. If you were under a obligation to wait through they should have exchanged contracts on that basis and paid you a deposit. You have been badly advised though as you should get an uplift on price if planning goes through. I would withdraw if you possibly can and start again. The developer is being a cf in my opinion as you have nothing if they pull out and they can string the planning process along.

CampingItUp · 05/10/2019 17:18

If they are confident that they will get PP then they will put their money where their mouth is and buy your property now.

If they do get PP, your property will be worth more - PP is permission for the scheme on that land - not restricted to the applicant!

You accepted a low offer because they were cash buyers and could proceed quickly.

They have not proceeded quickly at all.

Put your house back on the market.

However, I wouldn't trust the EA - I bet they get the developers business selling the new flats....

CampingItUp · 05/10/2019 17:19

I would speak to your solicitor, too.

Malvinaa81 · 05/10/2019 17:55

You're depending on both property developers and estate agents.

I'd think again, and tell them to buy your house now, or you will withdraw.

GU24Mum · 05/10/2019 20:13

Your house will be far more valuable with planning permission so in my opinion you should either exchange with the developer pre-planning for a lower amount or say that you'll wait til X date for them to get PP but that if they do, you want to share the planning uplift so will exchange at a higher price. Or take it off and go with someone else.

hiddenmnetter · 06/10/2019 04:29

The estate agent can’t force you to keep it off the market- they work for you. Tell them (in email) to put it back on the market. If they disoblige, you should be able to fire them. Read your t&c’s, but the buyer they’ve found won’t exchange without planning, and they don’t have planning. They haven’t found you a buyer...

Lonecatwithkitten · 06/10/2019 08:43

Have you signed any kind of agreement with the developers? If you have you may be tied into them for a set period before you can go back on the market.

Original poster

Louisa1962 · 06/10/2019 09:44

I have gone through the offer letter and TOC’s, and contacted my conveyancer. Not only was the conveyancer not aware of planning permission being needed (initially), but the offer letter makes no mention of planning being a prerequisite to a sale. I’m assuming this was just some sort of good will gesture on my part, with nothing formal written on any paperwork.

Our problem is, if it goes back on the market now, it may well be too late in the year to find alternative buyers meaning we lose the property we had set our hearts on.

The agent made the claim that the buyers had invested £12,500 in planning fees etc, but if they wanted to walk away they could without any issues. Would it be wrong if me to push them into buying without full planning? My fear is they say no and walk away. Leaving me with nothing.

OP posts:

TobyHouseMan · 06/10/2019 09:47

Once there is planning permission then your house is worth more. If you do wait it out and they do get it then you are in a strong position to get more money - after all they will have invested money and time in the project and would be unlikely to turn their backs if the property cost then an extra 10%

johnd2 · 06/10/2019 09:50

What a scam between the agent and developer! If they get put in a low offer for a quick sale then get planning permission, your property will be worth far more, so you should pull out and sell for a much higher price with the planning permission in place.
Sounds like they want you to wait for ages for something that might never come, and if it does come they want to rip you off.
My advice would be put it back on the market and ideally with a different agent.

wowfudge · 06/10/2019 10:00

Planning permission will make your house more valuable. You are being played for a mug accepting those conditions from the prospective buyer with nothing in it for you.

HillRunner · 06/10/2019 10:08

Agree with the above. Your buyer is not proceedable. Put your house back on the market and ditch your agent as they appear to have forgotten that they work for YOU, not this developer. If the developer gets PP, then you can have a conversation with them about their offer, but not before.

Why on earth would anyone accept an unproceedable offer?

HillRunner · 06/10/2019 10:09

And your agent has let you down shamefully. You have every right to complain to whoever regulates them. (Does someone regulate estate agents?)

HillRunner · 06/10/2019 10:12

BTW - did your agent actively market the property in any other way, apart from introducing this developer? Did you have any other enquiries or viewings?

It just sounds like such a blatant scam.

HugoSpritz · 06/10/2019 10:19

This reply has been deleted

Message withdrawn at poster's request.

BubblesBuddy · 06/10/2019 10:24

Everyone I know gets PP themselves and then sells for a higher sum. They don’t let a developer do it as they will pay less if a property hadn’t got pp.

Developers Always know Agents! It is how it works. The agent got you a sale but you have not understood how to make the most of the sale and I guess you didn’t have the money to get pp for yourself. You are therefore at the mercy of others. You could have negotiated a different deal with the developers and you don’t entirely know what you have negotiated, with anyone, so that’s worrying.

Yes, architects plans are expensive. Why have you not looked at the plans and the decision from the planning authority on line? How odd. You could make a judgement on whether the decision can be overcome. Is the developer revising the plans? This is a normal procedure and they often don’t get it right first time. Often it can take a long time but you have no other buyer so buying another property isn’t going to happen soon.

Often bird in the hand etc. However, you don’t have a sale so talk to other agents. Ask if they can help you get an architect and work up plans. Get the property marketed properly and ensure you understand the process involved and what you can do to get more money.

SleepyKat · 06/10/2019 10:24

I’d stick it back on the market. If they lose 12.5k more fool them for chasing planning permission for a house they don’t own.

I’d actually be tempted to get planning permission myself and sell it with the pp so you get more money. What’s to stop you refusing to sell it to them once they’ve got pp granted? Then they’ve done all the work and spent the money?

TheresAFuckOverThere · 06/10/2019 10:29

Total arseholes

Check your contract, and get back on the market as soon as you can, you are being royally screwed with all the risk.

PurpleWithRed · 06/10/2019 10:38

" My fear is they say no and walk away. Leaving me with nothing." You currently have nothing: they don't have consent so they wont proceed and you have no idea if they will ever get consent.

Put it back on the market first thing. If the current buyers get consent and are proceedable first they can go ahead, if someone else comes along with a better offer that's fine too.

Buying and selling your home is a hard business transaction, and the developer/estate agent combo impersonal business dealers. Play hardball back again.

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