Can I pull out of contract if told neg. equity AFTER signing?

jayjay2010

Hi Guys,

I signed a contract to buy an apartment back in late April. After signing contracts and paying 10% deposit, I got a call from estate agent saying the property is in negative equity. Long story short, I want to know if I have access to my deposit money if I want to buy something else instead.

The contract can't be legally binding if the seller has no consent from bank to sale? I was never told by my solicitor that it was in NE and I don't think she had this information given to her by the vendors solicitor.

I don't mind waiting, but if something else comes up in the meantime I don't want to miss out just because I'm waiting for something that may never happen.

My question basically is: do I have access to my money if I need it and if not, who can I go to that will advise me on this issue?

Any help would be grateful.

Rew

What did you solicitor when you asked them the above?

jayjay2010

She sounded uncertain, but she said there would be legal implications as I have agreed to buy it by signing the contract.

But I wasn't told about the NE. Not once mentioned to me. I thought it was my solicitors job to advise me of this before signing anything? Isn't this what a solicitor is meant to check?

VERY dissatisfied with my solicitor. I don't know who to complain to/ get advise on this situation.

Rew

jayjay2010 wrote: »

VERY dissatisfied with my solicitor. I don't know who to complain to/ get advise on this situation.

Law Society.

I presume your solicitor has received the counter signed copies back? If not you can pull out. Other then that I don't know but would seem he needs bank consent so if he doesn't have that he cant have signed the contract. You could fire a warning shot (via your solicitor) saying due to lack of bank consent there is no contract please tear them up and see what happens.

jayjay2010

Rew wrote: »

Law Society.

I presume your solicitor has received the counter signed copies back? If not you can pull out. Other then that I don't know but would seem he needs bank consent so if he doesn't have that he cant have signed the contract. You could fire a warning shot (via your solicitor) saying due to lack of bank consent there is no contract please tear them up and see what happens.

I've been told by a friend who has a lot of property and is in it years, that I could potentially lose my deposit if my mortgage approval runs out and doesn't get accepted the second time round. I've already signed the contract, so I have no clause to get my money back

Rew

jayjay2010 wrote: »

I've been told by a friend who has a lot of property and is in it years, that I could potentially lose my deposit if my mortgage approval runs out and doesn't get accepted the second time round. I've already signed the contract, so I have no clause to get my money back

Talk to your solicitor most of them put in a clause that contract is null and void if mortgage is denied. Ask your solicitor if the vendor can sign a contract without banks approval.

the_syco

Rew wrote: »

Ask your solicitor if the vendor can sign a contract without banks approval.

Surely the bank holds the deeds until the mortgage is paid off, and thus the vendor signing the contract doesn't mean the buyer gets anything?

Rew

the_syco wrote: »

Surely the bank holds the deeds until the mortgage is paid off, and thus the vendor signing the contract doesn't mean the buyer gets anything?

Banks consent is required which in NE they might not give how this effects the contract I don't know.