Pulling out of house sale

SaraM50

Hey, I’ve a mortgage question, I’m hoping is easy enough to answer. I have put a deposit on a house, but spent the last couple of months trying to iron out an unexpected technicality with the bank to get to the final full loan offer stage. It’s an impasse which the bank are being a wee bit stubborn over – my capacity to pay or reliability does not come into play here. But to get to the point - my question is, if I pull out of the buying process now, do I just ask for my deposit back, and expect the full amount or how does this work? Thanks!

cmssjone

SaraM50 wrote: »

Hey, I’ve a mortgage question, I’m hoping is easy enough to answer. I have put a deposit on a house, but spent the last couple of months trying to iron out an unexpected technicality with the bank to get to the final full loan offer stage. It’s an impasse which the bank are being a wee bit stubborn over – my capacity to pay or reliability does not come into play here. But to get to the point - my question is, if I pull out of the buying process now, do I just ask for my deposit back, and expect the full amount or how does this work? Thanks!

I assume that it was a booking deposit with the EA and no contracts have been signed. If this is the case, I believe you can pull out of the process and recoup your money.

SaraM50

Yep, no contracts have been signed, I will get onto the EA and let them know the deal has fallen through. No mercy for the human aspect if this - the people trying to buy and sell - you might have noticed I'm in a cynical mood this evening........

TheDriver

Your solicitor returns contract denied and unsigned and either ea gives u deposit back or if stubborn, your solicitor informs them that sale is not occuring

The_Conductor

Until such time as contracts are signed- you can pull out at any stage, and have your deposit returned in full. The inverse of this- is the vendor can change the asking price- to reflect changes in the open market selling price. Its a two way street. Until contracts are signed- anything goes.

Lombardo86

The_Conductor wrote: »

Until contracts are signed- anything goes.

This is what kept me up at night after getting what i believed was a fair price on a house and being left in sale agreed status for months. I don't know how it would be controlled but i would like stricter controls put in around that to prevent "Gazumping"

Santa Cruz

SaraM50 wrote: »

Yep, no contracts have been signed, I will get onto the EA and let them know the deal has fallen through. No mercy for the human aspect if this - the people trying to buy and sell - you might have noticed I'm in a cynical mood this evening........

Absolutely no humanity in this business. Remember it works both ways. I read that gazumping is making a comeback. It's just business I'm afraid

emmabrighton

I just got gazumped yesterday. Hoping the bottom falls out of the market (-his market). The vendor is a greedy p$!ck.

If the vendor can do it, I wouldn't feel the least bit guilty doing it as a buyer

The_Conductor

emmabrighton wrote: »

I just got gazumped yesterday. Hoping the bottom falls out of the market (-his market). The vendor is a greedy p$!ck.

If the vendor can do it, I wouldn't feel the least bit guilty doing it as a buyer

Its just a reflection of the times. What was happening up to now- is gazundering- that is- the buyer drawing out the process over a protracted period of time- and then at the very last possible moment, demanding an additional discount to sign on the dotted line- when the seller has dissuaded any number of buyers from making offers- on the basis of this 'buyer'.......

Its what happens. If everyone was ethical and moral in their behaviour- people would pay what they offered to pay- and no discount, or additional payment- would be subsequently sought by either party.

Unfortunately- not everyone has good ethics, or practices moral behaviour.

Zamboni

The_Conductor wrote: »

Unfortunately- not everyone has good ethics, or practices moral behaviour.

The Scottish legal system isn't too bad

http://en.wikipedia.org/wiki/Gazumping#Scotland

Scots law and practice makes the problem of gazumping a rarity in Scotland. In the Scottish system of conveyancing buyers either obtain a survey prior to making a bid to the seller's solicitor or make an offer "subject to survey". Sellers normally set a closing date for written offers, then provide written acceptance of the chosen bid. The agreement becomes binding when a seller's solicitor delivers a signed written acceptance of a buyer's offer. Should the seller attempt to accept a higher bid after the contracts have been legally finalised by a written offer and acceptance, their solicitor will refuse to act for them as this, according to the Law Society of Scotland code of practice, would be professional misconduct.

mad m

OP you will probably get hit with some sort of bill from your Solicitor though.

Tigger

While the market started to crash I pulled out twice
Cost me about 3 grand
Best monies I every spent
It's a huge decision and if you loose a few quid it's better that loosing a load

TheDriver

Its not even about loosing/saving money, we pulled out due to negative equity and saved our sanity