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Mortgage vs conveyances. What goes first?
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Shinji78 · 27/10/2020 14:25

Hi, buying a flat here in Scotland but have a question I can't find explanation for:

When I received the qualified acceptance from the seller's solicitor, I wasn't too confident of buying this property but I was told from my solicitor these will be negociated in due time.

I have now received the mortgage documents which my solicitor wants me to sign, but I am shocked by the fact he wants me to commit to this debt with the bank before we can negociate with the seller about the purchase conditions.

Is it always done this way?

I was expecting to negociate first and once all parties are happy, then I can commit my obligations with the lender.

What would happen if the seller and I can't get a deal and I ended up not buying the property? What do I do with the mortgage?
When is the exact moment my solicitor was talking about when he said 'in due time'?

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midgebabe · 27/10/2020 14:35

Won't you only commit to the debt if you actually take the cash, which unless you buy the house you won't ?

I think it's normal to have mortgage agreed before people waste time and money with the rest of the stuff

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Shinji78 · 27/10/2020 14:49

Sorry but I still don't get it.

If I sign these documents I will be granting a personal obligation to repay to the lender.

What if I ended up not buying the property?

People wasting time is not as important as me owning a debt for 25 years in exchange of nothing.

Is either I don't get it or we are losing common sense here

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midgebabe · 27/10/2020 15:07

You are only obliged to repay the lender IF they give you any money

They won't give you money until you have agreed to pay it back

The money is given to you effectively on completion when it's released to your solicited who ensures it's given to the other party in exchange for the house

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Shinji78 · 27/10/2020 15:27

That makes way more sense now.

Thanks @midgebabe

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DespairingHomeowner · 27/10/2020 15:37

If you are ‘not too confident of buying this property’:does that mean you do not expect to have the mortgage agreed?

If so, why did you bid/why are you tying up the property and preventing a sale?

If you are not willing to engage a conveyancer you’re vendor should be remarketing the property as you are not a serious buyer

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