Buyer screwed us over today

[MrsBaublesDylan]

Our FTB emailed the EA today to demand a £25k price reduction based on the work highlighted in the homebuyers report which they received 2 months ago.

All non-essential work, obvious to anyone viewing the house.

When they offered, it was at the very bottom of our range and we accepted without negotiation.

We were due to exchange in a couple of weeks.

They know we are moving for financial reasons, that we have a disabled child who I am a ft carer for and two other children.

They know that we either loose our home, or sell up, move area so we can buy out right and live mortgage free.

We said a flat no and unless they let the EA know today if they want to proceed at the agreed price, then we will put the house back on the market.

The money and our circs aside, how can some people feel it's ok to put people under this type of pressure?

We had some good news recently, but both dh and I agree that without it, the possibility of loosing the flat we want to buy and not being able to afford the mortgage on our current house, would have made us feel suicidal.

We'll be ok but it is depressing to know there are people with no integrity, who choose to live in a way which causes catastrophic harm to their fellow human beings.

You can get insurance for if a house sale / purchase falls through.

I would always buy this because in this situation you can think, well it's inconvenient but I'm not going to lose out financially if this doesn't go through.

@deleteasappropriate

I thought earnest money was an American thing? Happy to be told I'm wrong as this could potentially help us out of a problem we have with out own sale!

No, not just American, earnest money's not often used in the UK but IMO should be used more. Also called Non Refundable Deposit for Property Buyers

www.samconveyancing.co.uk/news/conveyancing/non-refundable-deposit-for-property-buyers-3392

Sellers and estate agents are more frequently asking buyers to pay a non-refundable deposit at the point they make an offer. The principle is to lock in the buyer with a financial commitment that they'll lose if they pull out. The challenge for the buyer is that non-refundable deposit contracts are often very detailed and require a lawyer to untangle the legally binding caveats hidden in the small print.

The principle behind property law in England and Wales is that no buyer is contractually bound to purchase the property until they have completed all of their due diligence and are happy to exchange contracts (Read more about Exchange of Contracts here). This does mean that the buyer, as well as the seller, can pull out for whatever reason up until they formally exchange contracts (and even after at a serious financial cost - read how to pull out after exchange of contracts).

If a vendor asked for a non-refundable deposit prior to exchange, I think I'd tell them to jog on.

The English system has the due diligence checks after agreeing the offer subject to contract.

But equally, as a seller I would always continue to market the property and take viewings right up until exchange. However, I would not be accepting offers until the first offer I'd accepted had been withdrawn. I might use the existence of later offers to encourage things a long a bit.

If a vendor asked for a non-refundable deposit prior to exchange, I think I'd tell them to jog on.

I would too, because it's not standard and implies they don't trust me, and in turn would make me not trust them.

But if it were part of the legal process...

We offered money to our buyers when the one we were buying were dragging their feet. They accepted and said just keep them up to date. It worked out well for us.

Your right to jog on @DrSbaitso and @DogInATent of course, but if earnest money / non-ref dep were standard, people like the OP wouldn't be in the awful situation they're in now. The system definitely needs reforming!. I think the seller should obtain a survey as part of the sales pack, and if a buyer makes an offer based on the sales pack and viewing(s) which is accepted, both parties should then pay a non-ref dep. If either backed out, the other party gets both NRD. Would stop an awful lot of time-wasting and heartache. And there's always insurance in case of unforseen circs which force the backing-out.

Friends of mine had their offer accepted then spent nearly £2k on surveyors, mortgage broker fees, hotel and travel to vist the area, lost money through time off work to check schools etc etc etc only to have the seller back out before exchange. Just devastating for them. My aunt on the other hand was selling a family property after probate where the other beneficiaries wanted a quick sale. She offered it for sale for 10% below market price on condition buyer paid a NRD which they did, and surprise, the sale was completed in record time.

MrsBaublesDylan: please, please speak to your current lender and be completely honest. You will be classed a vulnerable customer and there will be options available. Have a look at the Breathing Space Regulations which came into force recently and see whether you current lender can give you a mortgage holiday. They are very unlikely to take possession action whilst you are both vulnerable and actively marketing the property but you need to have a conversation with them. I do know a fair bit about this area because of my job
, let me know if you have any questions.

So this "earnest money", does that form part of what you pay for the house, as in the general meaning of 'deposit'? Or is the OP thinking it would be a bonus on top (as she mentions giving it on completion only)? If the latter I still think there may be an issue of not paying stamp duty on it when it is essentially part of the house price.

Mortgage advisor or EA should be able to advise. But it's more important to discuss keeping your current house with your situation etc first!

Yes, any earnest money / NRD forms part of the purchase price. It's a guarantee the buyer is serious, and is deducted from the total usually on exchange. Definitely not any sort of bonus. Say the purchase price is £100k, the buyer offers the purchase price with £2k earnest money, the offer is accepted, the £2k is paid into an escrow account. The sale process proceeds and at exchange, the buyer pays a 10% deposit of £10k, less the earnest money, so hands over another £8k. On completion day, the balance of £90k is paid..

OP has suggested paying her new house owner £2k as her own house sale might be delayed, just so the seller knows she's serious about buying the property. In my book, that's a smart move.

@Pleasedontputthatthere

MrsBaublesDylan: please, please speak to your current lender and be completely honest. You will be classed a vulnerable customer and there will be options available. Have a look at the Breathing Space Regulations which came into force recently and see whether you current lender can give you a mortgage holiday. They are very unlikely to take possession action whilst you are both vulnerable and actively marketing the property but you need to have a conversation with them. I do know a fair bit about this area because of my job , let me know if you have any questions.

This sounds like a good advice, OP. The earnest money is a smart move too. Fingers crossed for you.

I also wanted to add that should your lender not be helpful (or if you’ve gone down this avenue already and run out of road with them) then try contacting your MP.

Send them a letter outlining your circumstances and how and why you’re in this situation - disability impact etc - what would improve circumstances, the timeframe and ask them to write to the lender on your behalf.

This can gain you a bit of breathing space in the form of a mortgage holiday etc. because it doesn’t really cost the banks anything and they want to be helpful to MPs.

Fingers crossed for u

@Santaisstilleatingmincepies

What utter Cunts. Isn't it a shame you can't name and shame such people on E A books? Then future sellers could avoid..

I agree 100% well said

@GloriaSicTransitMundi
I bought my first house well before Seller's Packs. I'm afraid I don't trust them or the concept of them. Any offer I made on a property would be subject to my own survey.

Just a little update for anyone who's interested:

Tried everything I could think of today, including trying to resurrect the previous buyers with a 6k reduction (was never going to work but desperation was overwhelming); webuyanyhouse.com (too low offer); buy to let mortgage, offering £2k earnest money; bridging loan and then finally getting a second charge mortgage.

We took the kids to the SEN session at the trampoline park and on the way I told dh that we would loose the flat and have to see what happened with the house, but there was nothing more I could do.

Then a broker rang me back about a second charge mortgage and because we have so much equity in the house, he thinks it is totally possible.

I know the costs are high but we have five viewings booked over the next week on the house and if we can sell and complete in 3 months, we will pay £6k in interest.

I can't get my hopes up - all my energy is spent, but I am not giving up.

Other good news is that my youngest son has been offered him a place at really a lovely school today - he has been out of school since November.

This school is kind and happy and just what he needs

Great news about the school - that must have chuffed your pluff a bit 🙂

I’m not an expert (know nowt!) about the house stuff but I hope it works out for you - I truly do.

5 viewings?? 🤞🏼 🤞🏼🤞🏼🤞🏼🤞🏼

Great news about your Son @MrsBaublesDylan .
Good luck with the rest, I've got my fingers crossed for you 🤞

[quote DogInATent]@GloriaSicTransitMundi
I bought my first house well before Seller's Packs. I'm afraid I don't trust them or the concept of them. Any offer I made on a property would be subject to my own survey.[/quote]
I agree @DogInATent, the seller's pack should be a starting point for you to do your own due diligence. However a survey would have to be carried out by a properly certified RICS member and should be as independent and reliable as a Gas Safe certificate, and would also give an indication of the true value of the property. At least you'd know whether or not you were interested enough to pay for your own survey for a belt and braces approach before going on to the offer stage.

(I’ve been here under another name but can’t be arsed changing back - hope that is ok 12345 - no puppetry meant )

That’s a great update about the school!

Fingers crossed re the house, 5 house viewing is a fantastic start.

You're a star!! Keep going!!

@MrsBaublesDylan Great news!

Please keep us updated! 🤞🏻🤞🏻🤞🏻🤞🏻🤞🏻

They and lots of other do this right before exchange because lots of sellers just agree to get it all wrapped up. Tell them no and stand your ground x

Not nice people, make sure you don't tell the next buyers too much information x

Everything crossed for you