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?

Chancers

@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.

Er, no. Some parts of the UK (England and Wales) have really terrible conveyancing laws and practices. (Don't know anything about NI)

Scotland has a very different , highly regulated system of property sales and conveyance that works far better for all parties.

(I've bought and sold properties in both England and Scotland).

People have different views. I prefer the English system to Scotland as you are free to withdraw without liability at any point in England up to exchange of contracts.

I would say no and see what they say next. If they still refuse to sell at the agreed price then sod it. This is an absolutely deplorable way to behave. Our seller told us there was a cash buyer when our solicitor was being super slow and I called their bluff and said fine, if there is, sell the house to them - after all they didn’t know me or owe anything to me. There was no cash buyer, clearly. Seller then proceeded to refuse to leave our property on exchange day as she claimed she could stay in it another week. CF in the extreme. Her solicitor went nuts and she finally did one at 7pm. Good luck, OP.

@2bazookas

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).

That's exactly what my old boss said - he didn't think it was worth entering into negotiations on price because then this goes back and forward between solicitors and estate agents are piling on (so they get more commission and don't lose a sale/purchase/mess up the chain). It gets very stressful for all concerned.

If you stick to your guns and refuse to go higher they will lose out on a sale.

@Firecat84 is there an update? Did they proceed with pre-existing agreement?

People have different views. I prefer the English system to Scotland as you are free to withdraw without liability at any point in England up to exchange of contracts

Unbelievable attitude. This is the problem, people withdraw, mess around, move the goalposts on price and generally cause massive stress to other parties just because they can.

Do you realise that people run up thousands of pounds in solicitors bills, searches etc. Not to mention making life changing plans.

You shouldn't be going into a transaction, buying or selling if you can just decide to change your mind.

Sometimes there are changes to peoples circumstances and they have to withdraw from the deal through no fault of their own but to have the type of flippant attitude you have where you can just change your mind at any point is inconsiderate and selfish.

@Xenia

People have different views. I prefer the English system to Scotland as you are free to withdraw without liability at any point in England up to exchange of contracts.

I sold in Scotland and had a buyer pull out. No fun as we had assured our sellers in England that that never happens...

What were the consequences upon the bier for pulling out in Scotland?

I would think there is a 70% chance if you walk that they will come back with another offer and then another....and eventually agree at the original sale price. So I would walk and not turn back unless the price is agreed as the same. They have another 6 months ahead of they let you go.

I would think if you walk there is a 90% chance you will find something better and better value after this stamp duty ‘fuel’ the government has poured onto the housing market has passed. Appreciate that’s hugely inconvenient and hugely unsettling though.

That's a shitty way to behave on your sellers. Like others have said, tell them you agreed a price and you stick at that price or you walk.

This is just one of the reasons why the house buying and selling system in this country is broken.

Sometimes circumstances change and sometimes the market changes. We are in a situation now where we can’t find anywhere due to having sold ours at the beginning of the year, being gazumped and then prices going through the roof. Only 3 months in and we may have to withdraw because we can’t afford the rising prices whilst selling ours for 20k less than what it is apparently worth 3 months later. Makes no sense but here we are. I would never ever do what this vendor is doing but if I was going to lose a deposit and have to pay all fees because the market had surged I’d be feeling sick right now. We are desperate to move we just not can’t afford to.

I don’t for a second think that this is what is happening here though - this is greed and really cruel. Good luck OP.

walk away asap

stand firm, take it or leave it. It will just cost them more money.
Greedy CF as well - if they can't stick to an agreed price they are pretty low. Stooping pretty low in my estimation.

We are in Scotland and had a seller pull out on day we were to conclude missives. The English and Scottish systems are really not that different now.

How did it go @Firecat84 ?

@GrimDamnFanjo

Did you get to keep the deposit?

Walk away. You will find something just as lovely. This house purchase is all about you, by the way, don’t accept because you don’t want to put other people in the chain at an inconvenience. They have caused this problem, not you.

@eurochick

How did it go *@Firecat84* ?

So we said no but that we're happy to exchange at our original price. Not heard anything back!

The position in Scotland is slowly turning into the same as in England

I think the Spanish system is better. When an offer is accepted a £2000 non returnable deposit is put down. This gets rid of any timewasters. Progression to contracts is quick and then the usual 10% is put down. If the purchaser pulls out the vendor keeps the 10%. If the vendors change their mind they have to return the 10%, plus another 10% to compensate the purchaser.

Very few sales fall through and there is never any arguing about price after the initial negotiations.

@Freehugs -the position on this is the same in England and Scotland after contracts exchanged in England or missives concluded in Scotland -although in England a seller could choose to pursue for specific performance (ie force the buyer to proceed).

Missives (contracts) in Scotland are not usually binding until after submitted.

@Lassy1945

What were the consequences upon the bier for pulling out in Scotland?

Depends if the missives are concluded or not I think that is similar to the situation in England in that if no missives there is no liability If the missives are concluded there is a claim but there is no deposit so you have to sue and it is not particularly straightforward A lot of the time nowadays missives are concluded very late in the day There is less likelihood in fact of people pulling out as it is not been the accepted practice,but often there is nothing legally to stop it and it is becoming more common