withdrawing from the sale

cocoa123

I've already paid a booking deposit for new build house. Haven't signed the contract yet as my mortgage is still going through final approval with bank. Suddenly, another property has been recently put on sale. Can I still withdraw my offer for the first house? The problem is that the developer of the first house has already made some minor changes to the internal walls. He would probably want me to cover his costs for the changes he made.

4ensic15

Was the deposit paid "subject to contract"?

Smiley012

My understanding is that you can pull out anytime, right up until signing the contracts.

If the owner of the house you have a deposit on has made some minor changes to the walls - I'd be interested to know under what agreement were these changes made?

If there was some agreement whereby "I'll make changes, but if you don't go through with the sale, you're liable for the cost" - then I would say, pay up, take your deposit back and bid on this other property.

On the other side of the coin, even if another property has come on the market that you're interested in, who's to say that you will be successful in your bid on this property? You may find you're outbid, the bank doesn't value it as high as you're willing to pay, there may be structural issues, etc etc (the list is endless).

They do say a bird in the hand is worth more than two in the bush.

My advice is make sure you're well positioned to be successful on the second property, otherwise you may find yourself back at square one.

cocoa123

No, the the deposit was not paid "subject to contract". It was just a reservation deposit paid by check to developer via real estate agent advertising the new build estate. Developer himself offered to make some changes if we want and we moved walls, replaced bath with shower, cancelled original fireplace. The question is are we legally obliged to compensate the developer with the costs of all this or not without signing any formal and binding contract? And if so in what extent? We might be loosing 5K booking deposit already paid to him, my partner is worried and says he will demand much more, I want to find out if he can clime and how much.

Ms Doubtfire1

Had the same issue. you can withdraw at any point until the contracts are signed

Balmed Out

I presume you have a solicitor and it's a question their best qualified to answer

dori_dormer

It's a bit odd that the developer would spend money making changes when you haven't signed contacts and don't even have a mortgage yet! I'd say it's his loss. We picked tiles, designed kitchen etc while waiting final approval but nothing was ordered or changed until we signed

Senna

Unless you signed something to say you would pay the money for changes made to the house should you pull out, then its the developers problem.
The booking deposit was paid to the agent and the agent should still have it, the developer wont get it until the contract is signed.
Has the developer actually done the work to the house? If all the work isn't done now, tell the developer that there is a issue with the mortgage and stall his work so you don't cost him more money than necessary.
What happens if you pull out of this sale and the other house cant be purchased?

4ensic15

cocoa123 wrote: »

No, the the deposit was not paid "subject to contract". It was just a reservation deposit paid by check to developer via real estate agent advertising the new build estate. Developer himself offered to make some changes if we want and we moved walls, replaced bath with shower, cancelled original fireplace. The question is are we legally obliged to compensate the developer with the costs of all this or not without signing any formal and binding contract? And if so in what extent? We might be loosing 5K booking deposit already paid to him, my partner is worried and says he will demand much more, I want to find out if he can clime and how much.

estate agents are not allowed to take a booking deposit unless it is subject to contract. Was this agent registered with the pSRA?

cocoa123

4ensic15 wrote: »

estate agents are not allowed to take a booking deposit unless it is subject to contract. Was this agent registered with the pSRA?

Actually, it was a bank transfer, I transferred 5K to the bank account of the real estate agent and they sent me back a receipt. It might still remains on the RA account.

Henry Ford III

You can withdraw as you're no bound legally.

The builder was foolish to make any changes in the circumstances.

Letree

Am i the only one who sees what is being recommended in this thread as unfair on the developer. The OP agreed to buy a house and asked the developer to move some walls to suit the OP now the OP wants to walk away and get their deposit back. I think that is really unfair on the developer. Obviously these houses were designed bu an architect or someone and are laid out a certain way. Now due to the OP's request the house has been rearranged.

intheclouds

Letree wrote: »

Am i the only one who sees what is being recommended in this thread as unfair on the developer. The OP agreed to buy a house and asked the developer to move some walls to suit the OP now the OP wants to walk away and get their deposit back. I think that is really unfair on the developer. Obviously these houses were designed bu an architect or someone and are laid out a certain way. Now due to the OP's request the house has been rearranged.

Im sure the developer wont have any problems selling the house to someone else.

Balmed Out

Letree wrote: »

Am i the only one who sees what is being recommended in this thread as unfair on the developer. The OP agreed to buy a house and asked the developer to move some walls to suit the OP now the OP wants to walk away and get their deposit back. I think that is really unfair on the developer. Obviously these houses were designed bu an architect or someone and are laid out a certain way. Now due to the OP's request the house has been rearranged.

Agreed but im surprised a builder would ever leave himself open to this possibility so I would wonder what has the buyer signed and what his solicitor would advise.

4ensic15

cocoa123 wrote: »

Actually, it was a bank transfer, I transferred 5K to the bank account of the real estate agent and they sent me back a receipt. It might still remains on the RA account.

How you paid the agent has nothing to do with it. Is the agents registered with the PSRA?