Buyer pulls out of house purchase-Costs

[ironman]

i am due to be exchanging contracts this friday and moving to ireland. My house in the UK had an agreed sale 6 weeks ago. I have agreed to purchase a house in ireland and had instructed a solicitor in the UK to handle the sale of my house for which the proceeds were being used to purchase the house in Ireland. i have also had to instruct a solicitor in ireland to handle the house purchase in ireland.

The estate agent in the UK has received notification this morning that the buyer has pulled out of the agreement to buy my UK property. The estate agent has told me that i am going to be liable as well for my own solicitors fees as well as the ireland solicitors fees for land searches etc as they have carried out the work
.

On a side note as to my divorce settlement, i am being hit with £400 a month Spousal maintenance until my house is sold

I have been left to foot the bill of two lots of £750.00 solicitors costs. total £1500, removers cost as well as they were booked for friday etc

Can i claim against the person who puled out of the sale at the last minute to claim these costs. Contracts were being exchanged this friday so has a verbal contract been formed???

I did ask for advice on that other consumer website but the people on their seem to have a personality complex of superiority if you dare challenge their own interpretations. Sending insulting PM shows a distinct lack of maturity to invoke some sort of negative reaction. I do not care who is correct or not, These are self help forums, good manners cost nothing

[PAWS]

Re: Buyer pulls out of house purchase-Costs

good manners cost nothing

:clap2:Ironman, I know nothing about your issue but I have to applaud your comments. Someone with legal knowledge will be along soon with some sound advice.

[Kati]

Re: Buyer pulls out of house purchase-Costs

:clap2:I have to applaud your comments.

my thoughts exactly


While I too can offer no advice on your issue Ironman, I can wish you all the best and hope that you get it sorted soon!!

i know there will be people here on LB that can (and will) advise you :tinysmile_grin_t:

[Amethyst]

Re: Buyer pulls out of house purchase-Costs

Found this on a property lawyers website (which doesn't sound good I'm afraid particularly as they pulled out before exchange of contracts)

What happens if the other party pulls out?

Although this can be disappointing, there is very little that can be done if this happens to you. No one is legally committed to buying or selling a home until contracts have been exchanged. It is not unknown for people to pull out of a transaction even when people are ready and waiting to effect an exchange.


Unfortunately, you are not entitled to any form of reimbursement for money that you may have spent (e.g. on a local search, solicitors costs or survey report) or entitled to any compensation in respect of the inconvenience, stress and other losses that you may have suffered. It is therefore advisable that you leave as many arrangements as possible until after contracts have been exchanged to mitigate any costs.

Booking removal vans, instructing tradesmen to carry out property work and arranging time of work should all be left until after exchange wherever possible.


Also Citizens Advice


The offer to buy is withdrawn

The buyer may withdraw the offer they have made before contracts are exchanged. Until contracts are exchanged, the buyer is under no legal obligation to buy the home and does not have to pay for any of the costs that you as the seller may have incurred. However, you may wish to ask the buyer to contribute towards these costs.

[Amethyst]

Re: Buyer pulls out of house purchase-Costs

With regards your ex - are there terms in the divorce settlement regarding sale of the property and who is responsible for the costs of the sale? Presumably it all falls to you as you've had spousal maintenance awarded against you but thought it was worth checking.

[Crazy council]

Re: Buyer pulls out of house purchase-Costs

Did they pay the deposit to the estate agents/solisitors when they made the offer and you accepted. If so, i think yolu can claim your costs against that, if they did not pull out becuase of a fault on your side

[leclerc]

Re: Buyer pulls out of house purchase-Costs

I remember someone I knew had buyers pull out of sales at the last minute and the costs going against them so they insisted on a deposit being paid so that if they pulled out that the costs would be covered as a minimum. I think the advice amethyst has given above together with crazy council is right. If no deposit was asked of then the costs are covered by yourself in this instance.

[ironman]

Re: Buyer pulls out of house purchase-Costs

i am having a nose at the new Consumer Contracts Regulations That came into effect 13th June this year

That seems to cover this

Comments please

[basa48]

Re: Buyer pulls out of house purchase-Costs

AFAIK no contract has been entered into until it is signed by both parties, so to me it appears there is no contractual regulations to be contravened here.

Also it would be a contract between you and the buyer so I don't see how any trader as such would be in contravention either.

The regulations apply to items bought online, at a distance, or away from a trader's premises (for example, at home or at work).

[wales01man]

Re: Buyer pulls out of house purchase-Costs

I read it as the same if there was any protection for Housebuyers in legislation it would have been well reported in the media.
As usual you will have to bear the costs as many others have done and will do.

[Crazy council]

Re: Buyer pulls out of house purchase-Costs

mm, as usual, not sure on any current legislation, but, you can claim the deposit against costs if the purchaser pulls out and its not the fault of the vendor.

And, lots of property solicitors and agents, would not accept a formal offer unless the purchasers solicitors have the deposit in there account. I did find a recent write up for after contracts are exchanged , but am sure in the past, Its certainly the way we did it, to stop wasted time on offers.

Also, you have to watch for purchaser that do this to sellers. then put in lower offers, stringing the owner along.

Update--- Just had a call back off a buddy, He says, most estate agents and property sols have contractual terms set in now that allow them to claim costs if buyer pulls out, but, he said, they will not acsept an offer as formal untill at least part of the DEP is paid. IE, he said if informal offer made and agreed, they ask for 2k of the deposit money minimum to be in the solisitors accounts prior to acsepting the offer

[ironman]

Re: Buyer pulls out of house purchase-Costs

Thanks people