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Original poster

Seller demanding £33k extra on exchange day

999 replies

Firecat84 · 21/04/2021 05:01

After weeks of harassment from our sellers about the process going too slowly (it's been about 5/6 months due to us losing one set of buyers halfway through - we've been chasing solicitors like crazy trying to speed everything up) we were due to exchange yesterday. On the day however, we received a message via the vendors' solicitor saying that house prices had gone up so much in the time it had taken the deal to go through that they wanted an extra £33k (they gave a whole bunch of other vague reasons too, which I think boil down to they've had to pay for an extra term's private school fees?!!) Obviously we don't have this money and even if we did we don't want to give in to such horrible tactics. The vendors aren't in a chain going up - I don't know where they're moving after this.

The house had been on the market for a while when we made our offer and had been reduced twice. I believe we were the only offer (it has potential but needs quite a lot of work). We offered £8k under the lowest asking price. At the time there was plenty on the market in the area and now there is nothing we could afford. All the houses available are bigger and nicely finished, which does give the impression prices have gone up, but I think it's a bit misleading.

We are financially stretched to our limit as it is but are in a flat with a baby and desperately need more space. We've spent so much time and energy (and money) on this move and we're just exhausted and depressed by it all. My family want us to walk away and not give any money to such horrible sellers. What would you do?

OP posts:
Outonmyear · 21/04/2021 13:55

Ps I would say you will proceed at normal price or not at all x

Teafirst · 21/04/2021 13:56

We had the opposite, but kind of similar - our buyer's buyer on the morning of exchange asking for £30k off. Chain collapsed and we had to go back on the market. This time our buyer has asked for £10k off 2 weeks before exchange. I've decided people are utter bastards and I don't like them.

StayingHere · 21/04/2021 13:59

God I'm sorry OP what arseholes. Its maddening that this can happen. I would repeat what others say, just say no; you can only proceed on the already agreed price. You cannot agree to such a huge increase

MimiDaisy11 · 21/04/2021 14:00

I feel for you. We're in a small flat with a baby on the way and will be looking at places to move to in the next year. Not looking forward to that headache!

Alsohuman · 21/04/2021 14:01

@tara66

I am clearly the stupidest one on this thread although I have sold and bought properties previously. I have always been required to sign a contract soon after making an offer and always expected any buyer to do the same - by ''soon'' I mean within about 10 days. The buyer would also be required to pay a non refundable 10% deposit at that time. Then the remaining 90% payment would be about 6- 8 weeks later - by arrangement. When did that system change? Is the problem caused by getting a mortgage? But in this case - it seems the PO had a verbal or email offer accepted by seller which was witnessed by EA and presumably made through the 2 solicitors (also witnesses) involved - but that is not legally binding and can be changed by either party?
Are you in Scotland Tara?
Mumdiva99 · 21/04/2021 14:02

@tara66

I am clearly the stupidest one on this thread although I have sold and bought properties previously. I have always been required to sign a contract soon after making an offer and always expected any buyer to do the same - by ''soon'' I mean within about 10 days. The buyer would also be required to pay a non refundable 10% deposit at that time. Then the remaining 90% payment would be about 6- 8 weeks later - by arrangement. When did that system change? Is the problem caused by getting a mortgage? But in this case - it seems the PO had a verbal or email offer accepted by seller which was witnessed by EA and presumably made through the 2 solicitors (also witnesses) involved - but that is not legally binding and can be changed by either party?
That isn't how it works in the UK - unless possibly you are putting a deposit on a new build which might be different.

In the UK we offer, send a written confirmation of the Offer via the estate agent.
When the offer is accepted you instruct a solicitor and inform your mortgage company.
All the paper work is done (check, surveys, searches etc)
Then you exchange and pay the deposit (sometimes the deposit isn't paid then)
Then at an agreed time you complete fully and money changes hands.

Buyers and sellers can pull out anytime up to exchange.

Mumdiva99 · 21/04/2021 14:03

Sorry my reply should read - that isn't how it is in England. (Not UK)

Flossie44 · 21/04/2021 14:06

I wouldn’t walk. But I would say you are unable to do this! Let them decide whether to walk, incur lots of costs for themselves and loose their buyer after such a long time on the market.

I bet they don’t. They’re trying it on. Let us know what happens

FlyingBurrito · 21/04/2021 14:06

@tara66

I am clearly the stupidest one on this thread although I have sold and bought properties previously. I have always been required to sign a contract soon after making an offer and always expected any buyer to do the same - by ''soon'' I mean within about 10 days. The buyer would also be required to pay a non refundable 10% deposit at that time. Then the remaining 90% payment would be about 6- 8 weeks later - by arrangement. When did that system change? Is the problem caused by getting a mortgage? But in this case - it seems the PO had a verbal or email offer accepted by seller which was witnessed by EA and presumably made through the 2 solicitors (also witnesses) involved - but that is not legally binding and can be changed by either party?
Are you in England?
MissConductUS · 21/04/2021 14:08

@andyoldlabour

Sorry OP, we have really bad conveyancing laws in the UK, which allows this sort of thing to happen. It should be the law, that after the offer and acceptance stage, if a side decides to pull out, then they should be liable for the legal fees of both parties, unless of course there is a valid reason such as problems with the searches or title.
In the US this is dealt with in the contract. When the contract is signed the buyer puts a deposit (typically 10% of the price) into escrow. If they fail to complete for any reason not spelled out as allowed they forfeit the deposit to the seller. The seller is legally obligated to sell at the price specified in the contract. They can be sued to force specific enforcement of the contract.

I was surprised to learn on MN that you all do it differently.

SheldonesqueTheSecondComing · 21/04/2021 14:08

Thank God Scotland is different.

I’d let these buggers pull out.

Yes it absolutely is a business transaction and yes prices in a lot of areas have risen.

But it didn’t magically happen on the day of exchange and therefore the are undoubtedly CC.

Chancing or cheeky. But definitely cahnts.

Sorry OP. I hope it works out for you whatever happens. Flowers

ChairmansReserve · 21/04/2021 14:09

@tara66

I have always been required to sign a contract soon after making an offer and always expected any buyer to do the same - by ''soon'' I mean within about 10 days. The buyer would also be required to pay a non refundable 10% deposit at that time. Then the remaining 90% payment would be about 6- 8 weeks later - by arrangement.

This is not how it generally works in England or Wales.

When did that system change? Is the problem caused by getting a mortgage?

It hasn't changed for decades. Many, many decades. There is no 'problem' or anything unusual in OP's situation except that her vendor is being a dick.

But in this case - it seems the PO had a verbal or email offer accepted by seller which was witnessed by EA and presumably made through the 2 solicitors (also witnesses) involved - but that is not legally binding and can be changed by either party?

Offers have never been legally binding in England and Wales. Exchanging contracts is where it becomes legally binding. Hence that is why the OP's vendor has waited until now to be a dick.

RincewindsHat · 21/04/2021 14:14

My response would be: LOL, no.

(I am not one for using LOL, but this is a great occasion for it. What rude chancers they are!!)

NewModelArmyMayhem18 · 21/04/2021 14:15

If you don't go ahead OP, I hope the sellers get the comeuppance! Shameful behaviour by then. They're cruising for a financial bruising (with any luck house prices will start to drop before they sell it!).

quizqueen · 21/04/2021 14:22

If they have to start again with a new buyer, they will pass the reduced stamp duty deadline and may have to cover another term's private school fees so will be no better off. Just say you have offered the maximum you can afford so they will have to complete at the agreed price or pull out and start again.

CovidCorvid · 21/04/2021 14:27

But if the vendors aren’t buying a house as OP said then the stamp duty deadline makes no difference to them.

ChubbyLittleManInACampervan · 21/04/2021 14:28

Hope you don’t accept

Start looking for a new house straight away

JudgeJ · 21/04/2021 14:29

@Lovingspring

I just don't understand why this is allowed in the UK. In countries such as Australia it would not happen. I wish the law would change.
I believe that Scotland is different, once a price is agreed that's that,
IloveJKRowling · 21/04/2021 14:30

They can either pull out (not you, no way should you pull out - it's up to them to do this and incur any penalties) or they can complete at originally agreed price. Those are their two options at this point.

I hope for you they choose the latter but do be prepared for them to take anything not nailed down in the house, they sound like the types.

IHateCoronavirus · 21/04/2021 14:32

Oh op keeping my fingers crossed for you. Such a nasty thing to do! I wish sellers like this could have some sort or warning against their names!

MotherOfGodWeeFella · 21/04/2021 14:34

@CovidCorvid

But if the vendors aren’t buying a house as OP said then the stamp duty deadline makes no difference to them.
It does because whoever buys their house is 1. expected to pay more than they have agreed to sell it to the OP for and 2. if the buyer can't complete before the end of the stamp duty holiday it may become prohibitively expensive for them and they could pull out.
TheresNothingIWantMore · 21/04/2021 14:35

@CovidCorvid

But if the vendors aren’t buying a house as OP said then the stamp duty deadline makes no difference to them.
It's obviously always very hard to predict these things, but prices will likely fall again after the stamp duty holiday. If they can't complete quickly they may find their buyer pulls the same trick on them, or if they can't find a buyer quick enough end up having to sell for less. They'd be taking a gamble pulling out now
frazzledasarock · 21/04/2021 14:38

OP also said that the house has been on the market for a while and they’ve dropped the price twice.

The chance of them getting anyone to pay higher for this house outside of the stamp duty holiday window seems slim.

FixTheBone · 21/04/2021 14:40

Walk away, but pretend you don't care.

I'd personally have a very close look as to whether they can legally do this, and if not prepare a small claims court application for the money you've spent on fees and surveys etc.

Allwokedup · 21/04/2021 14:42

Say no way. Walk away.

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