We really need a better system

[Bluevelvetsofa]

We put our house on the market in February. The agents were poor, didn’t follow procedure, so we left them. Went with another agent just before Easter and by mid May, had several offers. The agent recommended one couple who were due to exchange and complete within two weeks and would stay temporarily with relatives.

Everything was in place, fees paid for various things and we were hoping for a July/August move. At the end of July, we discovered that the couple had not only not exchanged or completed, but that they didn’t have a buyer any more. We had lost the new house we were going to buy, so withdrew from the market.

In early August the house was available again, so we tried a third agent and another buyer offered. They were selling to a first time buyer, so small chain. So many searches, so many queries, more money spent and today we were due to exchange. The solicitor rang this afternoon to tell us that our buyers conveyancer hadn’t checked whether they had the 10% deposit for the purchase. He expressed astonishment that the conveyancer had been so unprofessional, but there’s nothing to be done.

So, nine months of living in limbo, hoping we’d be able to buy the smaller house to downsize to and here we are, stuck.

There must be a better way of doing things. The stress of it all has been enormous. I jump every time the phone rings now. We’re very much out of pocket, will still have fees to pay and absolutely nothing to show for it.

It's a bullshit system that's for sure. We rent and are moving next week; that has been stressful enough. When I read some of the horror posts on here like yours it's the only time I feel grateful to be renting...

I don't really understand why you have to start again. Do you mean they don't have a deposit at all? If it's just not available - thinking maybe they need to withdraw from somewhere and takes a few days could you not just exchange next week? Or do they not have it at all? I think if it's that you can agree amongst yourselves to exchange with a smaller deposit if you'd be happy to do that. I seem to remember my first place I bought we exchanged with well under 10% but that was 15 years ago so things may well have changed

But yeah the system is an absolute joke. I do agree with that.

There is no "system".

You sell via a contract. How you go about the detail of that process is up to you.

Whether or not your buyer accepts to follow any process you define is up to them.

For example, there is nothing to stop you insisting as a seller that at the offer point a buyer should pay £2k deposit that is not refundable if they do not proceed with the purchase. Few buyers would be likely to accept this though, especially in a cold market.

I think part of the problem these days is the number of things that are checked for before a purchase is increasing all the time. What that means is the chance that an offer will fall through is getting higher all the time.

Well there is a "system" in the sense that we have chains. And that means that even if everything is perfect in one rung of the chain the whole thing could still fall apart because of someone else further up or down that has nothing directly to do with your own purchase or sale. And that is really frustrating. But there is no chain here.

@0hshutupshirley they don’t have the 10% deposit they need to exchange. They have about 5%. If the developers we’re buying from will accept that, until completion, it can go ahead. Another alternative is that we make up the shortfall and get it back on completion. We’re not prepared to do that because there’s no guarantee we’d get it back.

Either a smaller deposit is accepted or the purchasers find some more money. Either way, the conveyancer is at fault for not checking/ not informing/ keeping quiet/ delaying exchange. All of which she has done. We have no redress for people who lied to us and no redress for a conveyancer who has not behaved professional,y, at the very least.

Why wouldn't you get it back?

You agree to accept a 5% deposit. Your developer either also agrees to accept that amount as deposit, or you make it up. Your completion statement will reflect the payments made, and show what money would be due back to you on completion. You wouldn't be in a position where you paid more than necessary.

I would imagine the worry is that the buyers won't get an increased mortgage to cover the additional 5%.

Chains are no evidence of a "system".

House sales are agreed by contract. You can place a contract on how to agree that contract with another party if you want. But I suspect few buyers would agree to it.

Our purchasers don’t pay the deposit to us, so we can’t decide to accept a lower figure. If we were to make up the shortfall and they couldn’t get the extra funds via increased mortgage or some other means, our solicitor advised that it would be unwise to spend our money.

I’m over it now and am accepting that we won’t be moving. The fees are a write off, but that’s life.

So they don't have a mortgage offer for the other 95%? That's the problem then, not the 5% deposit.

And yes, you can choose to accept a lower deposit.

Something isn't making sense here.

Banning chains would be a step a forward. Find cash first before you want to buy. Would be much better for everyone, as now people who hardly have a penny in their bank account somehow manage to get a mortgage still.

And where would the cash come from ?

I've bought and sold several houses in both the UK and USA and the American system (at least in my State), is much easier!
If your offer is accepted, the survey is done within 7 days, if that comes back ok then you pay a 10% deposit and that's effectively exchange of contracts.
It's generally then possible to complete within 3/4 weeks. Your seller has to move out the day before completion and you have a final viewing to make sure the property has been left in an acceptable condition before turning up at the realtors office the next morning to sign contracts.
Chains are not common around here. There are many apartment complexes set up as short term rentals so the majority of buyers have already sold up and are living in rented, furnished accommodation for a couple of months.
We're about to buy in the UK again and my DH has visions of finding a property over Christmas and being all moved in by Valentine's Day, haven't had the heart to kill his dreams yet!

@BackToWhereItAllBegan that sounds great! I wish it worked like that here. It would save SO much stress.

We are a much smaller country and a shortage of rental properties!

Our system work if buyers and vendors are honest and the professionals do what they are meant to to. Sadly it falls apart if they don’t. Evidence of a deposit and mortgage offer should be required. If this is not supplied, buyers are not proceedable. If buyers need the deposit for their next house wholly from the sale of the old one, don’t buy a new house.

As the person after me mentioned, selling, moving to rental (common US system) and proceeding to buy would definitely be the way to go. As a first time buyer, I simply refused to buy with chain. And given that properties aren't selling easily now, seller was okay to move out before finding their property.

That is not really sustainable under the system in England ( not Uk as Scotland is different ) mainly due to lack of rental property

Yes. It’s dreamland for most!

Not just the lack of rental property. Not everybody wants to move twice either!