Bermudashorts

There is no way I would continue with a purchase if the house was kept on the market. I am really surprised to hear that some people have been able to do this, never heard of that before. As a seller, I would also show commitment to my buyer by taking it off the market.

I bought my very first property, a flat in Wimbledon at a time when the market was absolutely booming and it was definitely a seller's market. Still they took it off the market once I had made an offer.

Yes and I also understand that an offer is not legally binding. Everybody knows this in England.

Emma - if your OH has a house now, why don't you just go out and handle the sale from over there? I sold my Wimbledon flat whilst I lived in Bermuda and two years later I bought my UK house whilst still living in Bermuda, it is quite manageable.

emma75

To be honest that is what I am gping to do if we do not exchange on Thursday. I have had enough of waiting around now and the OH has said the same. Plan is to exchange Thursday, Shippers in the following Monday/Tuesday and i fly with our boys a couple of days after that, So the first week of October:fingerscro ssed:

Alfresco

Good on ya Emma. Good luck and I hope it goes well.

JAJ

Hate to be the one to give a reality check, but if they haven't got the money then they're not ready.

Seneca21

If they walk away as easily as tat then they don't really want it, do they? And if they don't really want it then you're wasting your time dealing with them. They, after all, can walk away from the sale any time they please with impunity, thanks to the inanities of English property law.

So the house stays on the market until the contracts are exchanged. If they don't like it then go and buy another house. Simples.

Seneca21

Yet the buyer must show no commitment at all, even though it is the seller with the asset hanging in the balance. Stays on market until contracts are exchanged - this gives the buyer incentive not to mess about as well.

JAJ

There is nothing fundamentally wrong with the English law as long as people understand exactly what it means. Problems arise when people start treating an offer as legally binding (and making plans on that basis) when it isn't.

The Scottish system is different in that an offer is binding once it's made, so you have to do your survey, etc, in advance, as far as I know. In other words the Scottish "offer" = the English "exchange of contracts".

Other jurisdictions have developed a better system where an offer is legally binding but there are get-out clauses if the survey or finance don't work out.

Seneca21

I think the English system is inadequate. Think about how advanced a sale can be - people paying out for surveys, legal fees etc., - often post-offer - only for someone to walk out and all the money is wasted. An offer should be binding - and this would have the bonus effect of stopping silly-buggers making unserious offers and also it would kill the whole gazumping/gazundering thing as well.

JAJ

The problem is that if an offer is 100% binding, then the survey has to be done before hand which can lead to a lot of wasted time and money (as in Scotland). But a system which made an offer binding subject to certain exclusions would probably be better.

Seneca21

Agreed. Right now it's precarious even with a chain of two - never mind a chain of say six or seven people - any of whom can drop out with impunity no matter who has paid what by that point in the process. Farcical, IMO.

emma75

As mentioned earlier in the thread i have personally not heard of this being a common thing to do, We had an offer on the house, we accepted, it is sold subject to contract, Thats the risk we and many others take, yes they can pull out at anytime we are aware of that too. Thats the joys of buying and selling property.

emma75

They HAVE got the money! this is the church of England i am talking about who are buying the property for a retired vicar, They had lots of queries about the property which has taken forever and there solicitor did not respond to any emails or phone messages from anyone for 5 days, hence the hold up.

Anyway praying quite literally all goes to plan for this Thursday

Bermudashorts

And as I said, if I were the buyer, the only thing this would incentivise me to do would be to walk away. I am not going to spend thousands of pounds on surveys and solicitors if I am likely to be gazumped at any time. There are other houses out there and most people do take the house off the market once an offer is accepted.

Seneca21

As a seller I would look upon your walking away as evidence that you were never serious to begin with. People do not strike a deal to buy a house that they do not really want. The system means that the seller is supposed to put money into solicitors as well and yet they can be left high and dry by the buyer at any time. My view is that the system should not allow either party to do this to the other. What is your view?

JAJ

You could still be "gazumped" as until contracts are exchanged the house is never really "off the market" - someone can still approach seller if they wish.