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?

No don't give them a deadline. You need them to be the ones to pullout so they are liable for the fees.

Not helpful, I know, but I remember a thread where the OP was buying a house worth around 800,000 and the EA had demanded a deposit, let's say 10,000 to make sure they don't back out and mess up the vendor. And in the end it was the vendor who went with another EA and was not returning calls to anyone.

Although it is unethical to cause problems last minute, I would kind of understand if a buyer wanted a reduction, even last minute because they can't afford it and let's face it, house prices are insane. But asking the buyer for a last minute price increase where will they find the extra money?? Do banks suddenly lend you more?

@Notnowjo this is a horrible think to hear Absolutely horrendous! Couldn't you have used your deposit to buy something smaller and cheaper and in a less desirable area or did the price rise come so quickly that it was not possible? It is atrocious that thousands of people live in grotty rentals.

To reassure your buyers I would say to them that you will move into rented if it all goes tits up. Just so they don't walk away from this - is that an option for you?

To the vendors - keep you nerve and hold your position. Bastards!

*thing

You need them to be the ones to pullout so they are liable for the fees.

She can’t wait around forever though. She’s got a buyer to think of for one thing.

@Roszie

No don't give them a deadline. You need them to be the ones to pullout so they are liable for the fees.

You don't get any fees back, whoever pulls out. No contract until exchange.

Start booking some other viewings with your estate agent. It shows the EA and the seller that you are serious about moving on.

Don’t give deadlines or enter into any further negotiation. Let them sweat.

Glad you've gone back and said no. We were thankfully only part way through sale when the sellers claimed to have another offer come in and would we match it? About 20k. We thought about it then went back and said that they'd accepted the original offer and already cost us money (not a lot!) so we aren't going to pay more, the ball was in their court. They pulled out. We thankfully had a second property we'd liked and was still on the market to put in on that (saved some money here too). Several months later original estate agent calls and offered the original property to us as first refusal for the original offer. I laughed my head off and gleefully informed them that we were about to exchange elsewhere. Kept an eye on that house though. Eventually sold 6 months after we moved for £15k less that we'd offered. Figured karma got them.

@wombatgoeswild - the bit about the vendor being liable for fees relates to them potentially still be liable for the EA's fees if they pull out now when the EA had a processable buyer. If the OP, the buyer, pulls out the vendor won't potentially be liable to pay the EA anything.

Bloody autocorrect: proceedable buyer

Still no response to our email and not returning our EA's calls!

@Firecat84 they’re behaving appallingly, honestly I’d start looking elsewhere at this stage, they might well come back and say they want to proceed but if you sit around waiting for them they’ll have you emotionally disadvantaged. Start making a mental break now so you deal with the situation more objectively when (if?) they call back

Chin up, there’s some bastards out there, don’t let them get you down

Don't give up on it yet. As I said upthread, with our sellers it took over a week for them to come back to us asking for us to proceed with the sale.

In that week, I viewed other properties and made a point of booking in an appointment with the estate agent who the seller was using. I wasn't interested in that house, but it kept us on their radar.

Like I said upthread, the seller came crawling back, all apologies. Whilst we were tempted to revise our offer after our experience, we would then have been at risk of losing the place and we really wanted it.

When they didn't bother to set up a postal divert to their new address and asked us to hand deliver everything to a neighbour, I smiled and nodded and literally sent nothing. I owed them nothing in my opinion.

[quote MotherOfGodWeeFella]@wombatgoeswild - the bit about the vendor being liable for fees relates to them potentially still be liable for the EA's fees if they pull out now when the EA had a processable buyer. If the OP, the buyer, pulls out the vendor won't potentially be liable to pay the EA anything.[/quote]
Thanks for the clarification. Appreciated.

Best for OP to check that then.

[quote MotherOfGodWeeFella]@wombatgoeswild - the bit about the vendor being liable for fees relates to them potentially still be liable for the EA's fees if they pull out now when the EA had a processable buyer. If the OP, the buyer, pulls out the vendor won't potentially be liable to pay the EA anything.[/quote]
Potentially, but probably rather unlikely.

Been selling property for 25 years, worked for international PLCs, small independents and firms inbetween. Never seen such a clause enforced, as it would be a very tricky thing to prove.

Very rare to even see a clause like that in t's and c's.

[quote OVienna]@JudgeJ Threats to sue you for what, exactly?! How bizarre.[/quote]
They wanted us to pay for their solicitors fees to date, their building society search fees, the losses incurred in their sale down the chain, probably for the coffee they bought on the way home!
We declined, in two short words.

Do we know that they will be liable for EA fees in this situation?

We don’t know the TCs of their contract.

The EA may well have another proceed-able buyer waiting in the wings?

At what point in the post offer process does this liability to fees kick in? I have seen many people withdraw their property from the market after offer for many varied personal reasons and never been aware of this ever happening.

Additionally this vendor is not even taking it off the market - just potentially remarketing it if they withdraw - so the EA isn’t going to charge them twice.

Deadline them.

Do not give into their demands. There's no way you can magic up the extra money, and in any case it would be counter intuitive for all concerned as more time would be wasted getting the bank, solicitors etc to organise and process the new paperwork. Your solicitor and their estate agent should deal with this for you. Either you exchange on the previously agreed terms or the deal is off. They'll be at square one again so unless they're truly deranged they should wind their necks in and come to their senses. Sit tight.

While I'd be tempted to walk away to "punish" them as they have behaved disgracefully, if there is nothing wrong with the house I'd just grit your teeth and push for the exchange you're all ready for. Separate out the emotion and remember it's a transaction at the end of the day, you're never going to see or meet these people. You're buying their house - not them!

Depends how much you want the house really... If you do want it, dont increase your offer, but do tell them that although you love the house, you really don't have the money and have not a bean in the world. Give them an out. If you just speak your mind (and God knows, I agree totally that they are utter cockwombles) then they may just walk - they may have had a better offer and decide to risk going with it. If you can just psych them a bit, they may realise what pricks they are being and back down. After you have completed, you can call them all the cunts in the world. Which I would do - after I was in. And burn their mail.

They sound like chancers of the worst order. It seems they need that extra money desperately and are trying to intimidate you into giving it to them one way or another. Hold steady please.

@Firecat84

Still no response to our email and not returning our EA's calls!

Why are you communicating with their Estate Agent? And why are you emailing the vendors? With all respect OP I think your interfering is not helping and probably hindering. Your solicitor has this and you need to let them get on with their job. Speak to your solicitor if you have a problem and not the vendors or the people representing them - all you are doing here is messing up the correct line of communication. Exchange and completion will only happen when all parties solicitors are ready and not a moment before. I know it is frustrating, I have been in similar situations myself but there is nothing you can do that will hurry things up.

Thanks chocorabbit it was horrendous, briefly we’d spent all our money on fees, surveys etc then my child ended up spending months in NICU and my employer replaced me so we lost my income. We had been really constrained by the 500K stamp duty cut off. Prices went rapidly up but they’ve done that so frequently since 2000.

@Firecat84

Still no response to our email and not returning our EA's calls!

They're just waiting it out OP, see who blinks first.

Don't be the ones to pull out but perhaps set up some viewings with other properties. Reassuring your sellers by saying you'll move to rented seems wise.

This is so unethical - hope it gets resolved!!!

Don't do anything.

Don't set any deadline.

Don't pull out.

IF they would incur fees by being the ones to pull the plug, it's worth waiting.

They are clearly just chacing their arm and it hasn't worked. This is the last ditch 'who blinks first', I guess.

IF they would incur fees, that makes it more likely that they may cave. You don't know that, but there's no harm waiting a couple of days.

We’re all rooting for you Op! Don’t budge!