Help: should we withdraw?

[Chickpealover]

Husband and I are FTBs and (finally!) secured a property in a building we've both stayed in for quite a fair price - and within a month of the offer being accepted, we've done the survey, arranged the mortgage, appointed and started KYC with the lawyers.

We learnt two days ago that the vendor has put us in a 'contract race' and this investor has to yet transfer the asset in his name before he can legally sell it.

We asked the agent who sold us this and he had no idea. The other agent had been advertising this property for 2 weeks after acceptance despite repeated requests to take the ad down (they're the ones who have secured what the agent/vendor call an 'insurance' offer).

We really don't want to deal with papers that are not clean - and happy to wait for a month or so if it needs to be sorted as we ideally don't want to exchange for another 6-8 weeks (can do it quicker if it means not losing the property but we end up losing money due to double rents not budgeted for).

However, with this added contract race, I'm now really doubting the intention of the vendor who just wants the deal done. I don't want to be dictated to, by the vendor's need so we can do a proper due diligence.

Something is making me uneasy about this and I definitely do not want to be in a contract race.

I do want the place though and it's hard to find others we like in this location..

So, is it worth giving the vendor an ultimatum that if they're going to continue with the contract race, we will pull out.

We can't complete until they sort their own paperwork though.

Or, given the above behaviour of the vendor, accept the loss of the flat as they're likely to pull out and not honour the terms anyway (they've clearly lied to us about not showing the flat as we saw it the first weekend it was listed and offer was accepted immediately).

We are also paying close to asking price and the vendor didn't really negotiate on price.

Very confused but don't want to walk out without putting up a fight - any suggestions?

Thank you!

I'm a bit confused as to what's going on here? Is the 'contract race' a situation where the vendor is essentially selling the property to you and to another buyer in parallel, and whoever gets there first gets to buy it? If so, fuck that! Or have I misunderstood?

And where you're saying the property isn't in the vendor's name yet - how come? If the current vendor has only recently purchased the property themselves, this could make it tricky for you to get a mortgage on it until 6 months have passed.

I WOULD walk away without a fight!

I certainly wouldn't trust a seller like that and one of the two potential buyers (there may be more!) is going to lose money. The seller may then start 'gazumping' you too.

If I were the agent and I found out I wouldn't represent the seller either.

I feel like walking away is the fight, to be honest. The 'without a fight' option here is going along with this nonsense.

@Persipan you're absolutely right - and the seller doesn't even have to sell to us if we get there early.
Very interesting about the mortgage, yes the vendor dissolved the company the day he accepted and now is in the process of transferring into his name (which is actually going to cause a bigger delay!).

Sigh - yes, I think, even as I write this, walking away might be the best option given a very dishonest vendor!!

@TwoLeftSocksWithHoles I was fearing this, too.
Shame but maybe best to withdraw and find a better vendor.

Thank you!

Thanks @Persipan - I wanted to hear it objectively I guess!

I'd be surprised if a solicitor would allow you to complete without getting everything watertight. I would 100% walk away given that you could spend a lot on legal fees with a good chance that you won't even get the property

Agree with everyone else. Don’t let the vendor get away with this behaviour.

I’m sorry if it means you will lose out on a property you like, but there will be others, and with better vendors.

Thank you all, loud and clear, we will withdraw. I don't want to do such a big transaction with a vendor like this.

So your vendor is trying to set up a “contract race” when they aren’t even in a position to sell?

You are right to walk away. We had two offers accepted on properties over the past year - the first one the seller was a nightmare from start to finish, but we hung in because we really wanted the property. She ended up pulling out on the day of exchange, and in retrospect we should have pulled out when she first started dicking about.

The second one, the seller has been a dream - lovely, helpful, everything going smoothly. It is like night and day. We are due to exchange next week so obviously it could still fall through, but it is just a totally different experience. Far less stressful.

@Saschka oh no! That really sucks - sorry to hear and hope this exchanges goes smoothly! All the best!

Glad you have decided to pull out and walk away. Behaviour like this is unfortunately legal, but unacceptable.

I would also pull out op - you're making the right decision. We are in the process of buying a flat - it's a work related crash pad for me, so admittedly I am not as emotionally involved as I would be if it were my main home, but I have walked away at the slightest hint of silly buggers from agents and vendors. People who play games are more likely to cause issues further down the line - trust is important with buying property, it is the biggest purchase most of us will ever make.

I had similar where dodgy stuff about the vendors started coming out some months down the line and they were pressuring me to get my conveyancing faster and in effect be in a position of maximum commitment before they would properly put their cards on the table. Personally I pulled out sooner rather than later.

It feels like a major red flag to me that a vendor is in a rush to get you into a position where you have a lot to lose by pulling out. With a contract race, as you say, it's pushing you to skip due diligence and go all-in with zero commitment from their side - that's a deal you can't win.

Politely walk away. The other buyer will probably also walk. This leaves you in position to re-commence later, if you want to (a big 'if' )

Meanwhile, drop a note through every other letterbox in the property.

Is this in London and is the vendor an Indian chap operating under a company who owns many properties?

This is how he does business and he does eventually sell but after many buyers have fallen by the wayside

@weareallcats @Tupster 100% agreed!

@senua that's a fantastic idea re dropping the notes, I don't want to be too creepy but worth a shot!

@DrJoanAllenby not Indian, but otherwise exactly the same. The guy runs (and dissolves, apparently!) real estate companies that refurbish, sell, etc. for a living. He even offered to give us a 'discount' if we used a solicitor he recommended. Thanks goodness we politely declined!

I definitely think you are making the right decision here.

I've never even heard of this.

Withdraw? I’d be tempted to just ghost them. Vile behaviour.

Another twist here, the vendor has now come back and asked us to become sole buyers as we walked away.

We are reconsidering/seeking legal advice and may continue if it means the vendor is open with their 'concerns'.

I know this wasn't expected but we do like the flat so might take the chance 😕

I wouldn't. There will be other flats.
What has changed your mind about the seller?

Another twist here, the vendor has now come back and asked us to become sole buyers as we walked away
Ha ha. The other interested party have told him to do one and he only has you left. He's trying to pretend that he's doing you a favour by making you 'sole buyer' but it's only what a normal vendor would do in the ordinary course of events.

The flags are still red IMO

I personally would still want to consign him to the 'fucked around, found out' bucket; I don't believe he's suddenly become sincere now. It just suits him to appear that way.

But well done for making a stand.
If you do continue then insist that the property comes off the market. And continue to be vigilant.