Am I right in thinking that the buyer generally bears the costs of a house purchase?

[RainyWednesday]

I co-own a flat with a friend. I'm moving out and (hopefully) her brother is buying my share.

She seems to be assuming that we'll be splitting all the costs equally, whereas I thought that the buyer pays all the costs and the seller just pays their own conveyancing fees and the estate agents' fee (which obviously we don't have in this case).

Have I got that wrong?

no that sounds right.

you are right.

Thanks

Now I just have to work out a polite way of mentioning it!

you would need to have separate solicitors anyway, so would get separate bills. AS you are just selling privately you don't need an estate agent either. So, he will be responsible for employing the estate agent and his won solicitor. You shouldn't have to pay any of those costs.

The seller does normally have to pay for the Home Information Pack, but you may not need one if you're not 'marketing' the property.
However, if you do market the property, even if you don't use an agent & just put your own 'For Sale' sign up the seller has to get & pay for an HIP.

we're in the middle of selling DHs old house privately to a friend. There was no HIP needed on either side.

Cheers

The other costs I can think of are a survey for the mortgagee, the mortgagee's charge, and the fees for a financial advisor who is helping us out.

On the one hand I think for a few hundred quid it seems pointless to start an argument, and on the other hand I think . I'm saving overall though by not paying for an estate agent I guess. For a while she was talking about getting a homebuyer's survey and seemed to think I would be paying half and I just thought "Why would I pay half of something that's probably going to be detrimental to me?"!

You shouldn't be paying for the survey or the charges to his mortgage.

fair enough pay for half the FA who is acting for both of you, but the rest his definately his responsibility. He will be engaging them and the bills will come to him alone.

the mortagage fee will prob be added to the mortgage, so nothing to do with you.

she has probably realised that the homebuyers report will be detrimental to her as well...as the co-owner she will be responsible for her share of any costs arising out of that report!

I suppose it depends on how much you want/need to sell. It doesn't seem worth while kicking up a fuss if it might make the sale fall through. Presumably if her db doesn't buy out your share you will either be stuck with your share of the flat or both you and your friend will have to sell.

I can't see how you would be in any way responsible for his mortgage fees though. It might be a kind gesture to pay part of the survey on completion of the sale (ie not up front when he might still back out of buying it).

I don't think she does think the homebuyer's survey would be detrimental to her too, I think she just remembered we had to get a valuation for the mortgagee and thought that that's what it is, but I've pointed out that they only need a really basic valuation.

At the moment the mortgage is half mine - we're effectively just taking my name off and putting her brother's on, so any fees being added to the mortgage affect me too. Also I think she might bring it up when we're working out how much money I should get - though I guess that gives me the opportunity to say that I'm not paying that fee.

I'm not convinced we need the FA but at least he's keeping things moving! We originally asked him for advice on whether housemate and her DB could get a mortgage together, but have ended up sticking with our original mortgagee anyway.

I do need/want to sell because I'm moving away with DH and we want to realise our equity in the property with a view to buying our own place in a while. She kind of needs to sell to her brother too though or she will need to sell up and have nowhere to live!