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 not believing, even for one second, that the vendor has suddenly become sincere but I think he's realised we are serious and much further along than the other party / or the other party has dumped him, too.

He has already told our lawyer about this and we are going to give him a last chance - not because he's changed but because we've found out that he really needs the cash, and soon.

One little toe out of line (ie any listings or any delays or any viewings) and we will completely back out.

This property could be a good steal for us so..hence very cautious.

But I appreciate that this isn't a great start and we may well have to suffer some costs if the vendor throws another curveball. Thank you for the advice, and caution - going in with my eyes wide open and will report back.
Fingers crossed his strategy completely backfired and he will now behave to get this over the line.
No guarantees though. Sigh!

I am not normally one for revising offers, but if you are prepared to lose the purchase, there will always be others, I would lower you offer in order to continue with the purchase. It is quite clear both parties said they would withdraw leaving the vendor with no purchaser.

What is there to say he hasn't gone back to the other party offering them "sole rights"?

@schloss very valid point, can be good leverage and test of commitment.

But all this has given me a lot to mull over.

I think we are going to sleep on it and consider whether dealing with this sort of vendor who can always pull out is worth the hassle and time and potential disappointment!