Seller demanding £33k extra on exchange day

[Firecat84]

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?

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.

Just to clarify how it's done in the US, the contract is drawn up and agreed to when the seller accepts the offer. There is typically a delay of a week or two while the lawyers draft and agree on the contract terms. Buyers and sellers then sign and the deposit goes into escrow. Then there is another delay, typically a month or two while inspections are done and the buyer finalizes their mortgage. Then all parties and their lawyers and a representative of the mortgage company or lender meet for "the closing". Checks are exchanged and disclosure documents are signed. The buyer's lawyer then records the deed with the county government.

So there's no faffing about with the price at the last minute. It's locked in a month or two before legal possession is exchanged.

@JudgeJ Threats to sue you for what, exactly?! How bizarre.

Ooh i've always wondered about this (too many property renovation shows!) @MissConductUS what if the inspections reveal problems? Can renegotiations happen or should that stuff really be done before making offers?

I'd say you're only going to go ahead at the original price. If they refuse, walk away and wait until the inevitable house price crash in a year or two and bag yourself an even better house.

You'd be foolish to pay over the odds right now in such a rising market, you will only end up in negative equity.

Personally I wouldn't just walk away, I'd drop your offer a further £5k to 'account for the stress their last minute game-playing has had" - & say take it or leave it.
Any update OP?

i'd say you're willing to proceed at the agreed terms, or they can fuck off.

they're piss takers.

Hoping for the best for you OP. We’ve also been on the receiving end of something similar which delayed our move by 6 months. Still going through it actually.

There is absolutely no excusable reason for them to do this on the day of exchange, other than being utter scumbags. Don't let anyone tell you different. Absolutely no-one engages in legitimate offer negotiation based off surveys, changing market etc on the day of exchange.

I remember in 2001 when we bought our house it was 6 months between the offer being accepted and actually moving in. During those six months house prices jumped massively. We kept trying to speed things up as we were living with parents with our two toddlers and the estate agents kept telling us how lucky we were that the vendors hadn't re-listed as they could now sell for much more !! Most stressful time of our lives, but yes we did get a bargain in the end as they stuck to th agreed price.

@BuggerBognor

Call their bluff and be willing to walk.

We had a seller that did this. We took it to the wire and when they (predictably) capitulated we initially refused to exchange on the grounds they were cunts. Eventually we exchanged but they deliberately trashed the house at completion so you also need to think about whether you want to deal with people like this at all.

@MissConductUS note Bognor's post as well. I am originally from the US but have only ever lived as an adult (and hence bought properties here.) My parents used to talk about the 'walk through' prior to closing. Am I right in thinking that in the US the sellers could be held to account for this sort of thing?

Also, you might be interested to hear that when they sold their last house, the buyers, instead of putting in the full deposit into escow (say for example 10,000) put it in 10% of what they were supposed to, so like a grand. My parents discovered this at the closing. No consequences for anyone.

Hope it's gone ok OP. Don't move an inch!!

How’s it going OP?

Good luck OP!!

@NutellaEllaElla

Ooh i've always wondered about this (too many property renovation shows!) *@MissConductUS* what if the inspections reveal problems? Can renegotiations happen or should that stuff really be done before making offers?

There may be some regional variation in custom, but in New York the buyer might have the home inspection done after the offer is accepted but before the contract is signed. Or they might request a clause in the contract that makes closing contingent upon satisfactory results of the inspection. If they have such a clause and the inspection reveals a serious problem they would provide the seller with the inspection report and either negotiate a lower price or pull out of the deal completely.

In extremely hot markets one way for buyers to compete for a house is to offer to waive the inspection clause, at their peril.

Ok so price can still be negotiated but only for inspection failures, not for game playing as described in this thread?

Is Escrow like an independent deposit holding service?

@MissConductUS note Bognor's post as well. I am originally from the US but have only ever lived as an adult (and hence bought properties here.) My parents used to talk about the 'walk through' prior to closing. Am I right in thinking that in the US the sellers could be held to account for this sort of thing?

Yes, a "walk through" immediately before closing is still customary and the buyers can refuse to close if the condition of the house has materially changed. The contract usually specifies that the house is "broom clean" and in the same condition it was when the contract was signed. Contracts will also usually specify what appliances are to be left behind, so that's checked as well. Appliances are typically left, but the last time we moved I kept my Miele washer. They're very unusual here and I couldn't bear to part with it.

Good luck! Let us know how it goes.

@NutellaEllaElla

Ok so price can still be negotiated but only for inspection failures, not for game playing as described in this thread?

Is Escrow like an independent deposit holding service?

Correct. This is why home inspectors are licensed and have to issue a written report. If the seller thinks the report is invalid they can pay to have someone else inspect the house. Game playing as described here would not be allowed.

In some states, there are independent escrow companies. In New York, the seller's lawyer typically deposits the escrow into a special account where it is held until the closing, then paid to the seller.

When we sold our previous house we had a buyer pull out after going to contract for reasons that were beyond their control. We had no trouble finding another buyer at the same price so we have them back the full deposit. They were a very nice family and it wouldn't have felt right to keep it, but legally we could have.

Hope you told them to GTF

How did it go OP?

Thanks for the info!

I hope the OP gets it resolved today, the sellers sound like bastards who would trash the house too.

They sound like nasty fuckers, I would be sorely tempted to walk away for good....

What horrible people. Definitely walk!

Tell them that with regret you cannot proceed , and walk away. Do NOT enter into any negotiations on price.

My guess is that it's a try-on (very underhand) and they may well come to their senses when faced with marketing all over again ( and at least another term of paying school fees, LOL).

I'd walk away. Fuck em. Toads! 🤬
It's just as well u don't have the money. You'd probably cave in. Bloody chances.