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Hi,
Looking for some advice for my inlaws who were looking to buy a house which was being renovated by a builder. They withdrew from buying the house pre-exchange of contracts and they are now pursuing them for a number of costs. Timeline:
- Viewed house in the middle of buidling work. Agreed to pay full asking price if builder installed a shower in bathroom rather than a bath that they were planning.
- Vendor agreed but requested a £5k deposit to be placed to take house off market
- In-laws said they would be willing to consider and said would discuss it with solicitor
- Estate agent issued memo of sale with the £5k deposit mentioned in it
- In-laws solicitor advised that a pre-contract deposit was not a good idea and stated should go for a quick exchange of contracts - this was communicated to vendor and estate agent and proceeded on this basis with no objections raised
- Delay in water search as vendor solicitor did not provide required details for 4 weeks
- Start of last week, vendor stated they wanted exchange by end of week or would remarket house at increased price
- No exchange happened as water search still outstanding and house price increased on rightmove (note that the house was never actually taken off market). Vendor stated house price was now increased and that would to be paid
- In-laws stated they were withdrawing from purchase
- Vendor sent letter directly to in-laws solicitor stating that £5k deposit was agreed verbally and that this was now due. Also demanded extra 2.5k for fitting shower instead of bathroom and gave 7 days to pay
Am i correct in thinking there is no valid agreement in place to pay this "deposit" that was never placed or the costs of changing bathroom as there was no written contract and no contracts were exchanged?
Looking for some advice for my inlaws who were looking to buy a house which was being renovated by a builder. They withdrew from buying the house pre-exchange of contracts and they are now pursuing them for a number of costs. Timeline:
- Viewed house in the middle of buidling work. Agreed to pay full asking price if builder installed a shower in bathroom rather than a bath that they were planning.
- Vendor agreed but requested a £5k deposit to be placed to take house off market
- In-laws said they would be willing to consider and said would discuss it with solicitor
- Estate agent issued memo of sale with the £5k deposit mentioned in it
- In-laws solicitor advised that a pre-contract deposit was not a good idea and stated should go for a quick exchange of contracts - this was communicated to vendor and estate agent and proceeded on this basis with no objections raised
- Delay in water search as vendor solicitor did not provide required details for 4 weeks
- Start of last week, vendor stated they wanted exchange by end of week or would remarket house at increased price
- No exchange happened as water search still outstanding and house price increased on rightmove (note that the house was never actually taken off market). Vendor stated house price was now increased and that would to be paid
- In-laws stated they were withdrawing from purchase
- Vendor sent letter directly to in-laws solicitor stating that £5k deposit was agreed verbally and that this was now due. Also demanded extra 2.5k for fitting shower instead of bathroom and gave 7 days to pay
Am i correct in thinking there is no valid agreement in place to pay this "deposit" that was never placed or the costs of changing bathroom as there was no written contract and no contracts were exchanged?
