to cancel a sale agreement

memomtoo

we have sale agreed a two bed property 4 weeks back, officially its two bed midterrace house but recently renovated(extended kitchen and attic room), not much of backyard space. Now in the coming week we were asked to come to sign contracts.

Right now, for nearly this price(after bidding its really costing a 3bed house) we are finding many properties for lesser costs and atleast they are 3bed houses. Not really fluctuated but because of prices we were afraid to go for bigger house but now they are asked for better prices than the final offer we accepted for the current property.
At this stage, after surveying is finished,protection ready with loan offer-is it fair enough to cancel this and agree to another property? does it take a lot of time to close a new deal if we have everything ready from our side?

this is getting to nuts as its a matter of home to live and want to make sure we choose best possible to budget. will it be fair to cancel at this point of time? can we make a strong excuse to do so?

1641

Yes, you can cancel now and get your deposit back. Obviously you will lose anything else you may have spent on, eg, survey. I'm sure the vendor will be annoyed but this is too big a decision to go ahead on unless you are fairly sure it is right for you. Deals falling through at this stage are not uncommon. The Estate Agent involved may well be more wary about dealing with you in future.

As for length for new deal - this is hard to predict. Some vendors will be all ready, some won't , some may have a bank involved, etc, etc. You will have to take this into account in making your decision.

Are your sure your indecision relates specifically to this property ?

memomtoo

I know how it feels from vendor point of view, that is why really want to find a genuine excuse that they can easily understand and cancel this deal for us, I will only let them know once am ready with other seller confirming close sale soon as possible ofcourse, won't take risks at this moment.

Also another question with survey reports, if a house is a bit old, it will obviously have some defects to repair but will they impact on sale process?
and if we agreed to another property, its only survey report we need to get one for it is it? any other processings? when we are ready with life cover? evaluation? for this do we need to contact the mortgage officer again?
is it a tough process or too long to go through a new sale agree?

Graham

memomtoo wrote: »

I know how it feels from vendor point of view, that is why really want to find a genuine excuse that they can easily understand and cancel this deal for us, I will only let them know once am ready with other seller confirming close sale soon as possible ofcourse, won't take risks at this moment.

Don't find an excuse, tell them the real reason.

If you want to be fair to the vendor, do it sooner rather than later and don't waste any more of their time stringing them on while you window-shop for better alternatives.

hairyslug

We were on the opposite end of it 3 times, I don't think any excuse will really do but you need to do what it right by you. You are buying for you, not for the seller.

As for time, we sold recently, we had everything in order and so did the buyer, from sake agreed to finish took about 6 weeks.

busylady

If you agree to buy a different property, you will have to have a new mortgage approval issued - each letter of loan approval is specific to a particular property. The bank will also require a valuation for the new property. So there is a bit a paperwork to do, but if you have already received loan approval for one property it should not take to long to process it for a different property.

memomtoo

busylady wrote: »

If you agree to buy a different property, you will have to have a new mortgage approval issued - each letter of loan approval is specific to a particular property. The bank will also require a valuation for the new property. So there is a bit a paperwork to do, but if you have already received loan approval for one property it should not take to long to process it for a different property.

yes, loan approval is already issued to us. the maximum we could wait is another month to properly close the deal, so we move
we are also thinking a bit on behalf of vendor too if its any trouble, can we say there was a survey problem and we need to put extra monies to do some repairs so we cannot pay further for it being a two bed?

Graham

memomtoo wrote: »

can we say there was a survey problem and we need to put extra monies to do some repairs so we cannot pay further for it being a two bed?

If there's a survey problem, tell them that's the reason you're backing out.

If there isn't then just tell them you've had a re-think and you no longer wish to continue with the purchase.

1641

Memomtoo - You are obviously very concerned about the vendor's feelings. But, firstly you have to do what you think is right for you here and, secondly, you should be honest with the vendor about it. If it is because of a survey problem then say so. If it is not then do not pretend that it is. Either side can change their minds at this stage - that's the way the process is.

memomtoo

1641 wrote: »

Memomtoo - You are obviously very concerned about the vendor's feelings. But, firstly you have to do what you think is right for you here and, secondly, you should be honest with the vendor about it. If it is because of a survey problem then say so. If it is not then do not pretend that it is. Either side can change their minds at this stage - that's the way the process is.

yes, a bit because we are first time buyers so not known of these type of experiences, we do respect someone's time and dealing for us at the same time so much confused because of these fluctuations.
This home has no backyard, most of the room is covered with extension so hardly few tiles out there in open area if need to consider for kids in the future to play. Does it bother a lot? confused but trying to find best genuine reason that we can walk away. We will only walk away if only confirmed another property that suits better with price

Paddytheman

But can you confirm a better property with better price. Surely if you take another option you will enter "sale agreed" and have to withdraw your approval for the first property and re-apply. At any stage of the process could this second property could fall through and for many reasons, nothing is guaranteed at this stage of the process so it will be a risk.

Buying property for most of us is about compromises but honestly if you want a backyard for your kids and it doesn't have one you have answered your own question, not only on this thread but your previous on this topic.

Also be honest with the current vendor, no need to make up some b@llsh@t.

jomalone14

memomtoo wrote: »

yes, a bit because we are first time buyers so not known of these type of experiences, we do respect someone's time and dealing for us at the same time so much confused because of these fluctuations.
This home has no backyard, most of the room is covered with extension so hardly few tiles out there in open area if need to consider for kids in the future to play. Does it bother a lot? confused but trying to find best genuine reason that we can walk away. We will only walk away if only confirmed another property that suits better with price

So, what you're saying now is that this property that you have gone sale agreed on is now unsuitable for your needs because it doesn't have a backyard? It didn't have a backyard when you originally saw the property so why did you bid on it in the first place?

OP, I know you are first time buyers and are new to this game but what I would respectfully suggest to you is that you come clean with the vendors of this house and call off the sale if you don't intend on proceeding. You do not have to give a reason but it's unfair for you to string any vendor along while hoping for a more suitable house to come on the market. If you were the vendor, how would you feel?

Once you have withdrawn from this property, it would be important to draw up a list of what you are definitely looking for and what you definitely don't want....a wish list so to speak. No-one gets everything on their wish list, there's always a compromise. But going as far as sale agreed and then deciding to sit on it until something better might come along is unfair on the vendors and underbidders, plain and simple.

You had another post on the same topic here 2 weeks ago with people offering all sorts of advice. My advice hasn't changed since then.

Fol20

1641 wrote: »

Memomtoo - You are obviously very concerned about the vendor's feelings. But, firstly you have to do what you think is right for you here and, secondly, you should be honest with the vendor about it. If it is because of a survey problem then say so. If it is not then do not pretend that it is. Either side can change their minds at this stage - that's the way the process is.

I actually think the opposite. If they were concerned for the vendor, they would tell them right now they are backing out. At least that way the vendor can move on and start the sale process again. The way the op is doing it is keeping the vendors property tied up as a backup plan while they look for something better which isn't fair. If you don't like the property any longer, and your gut is telling you not to get it. Tell the ea. don't make excuses. And move on.

1641

Fol20 wrote: »

If they were concerned for the vendor, they would tell them right now they are backing out. At least that way the vendor can move on and start the sale process again. The way the op is doing it is keeping the vendors property tied up as a backup plan while they look for something better which isn't fair. If you don't like the property any longer, and your gut is telling you not to get it. Tell the ea. don't make excuses. And move on.

Fol20 I fully agree with this.Make a decision and tell the vendor asap.And don't make excuses as a way of "sparing the vendor's feelings" (or memumtoo's own feelings ?)

memomtoo

1641 wrote: »

Fol20 I fully agree with this.Make a decision and tell the vendor asap.And don't make excuses as a way of "sparing the vendor's feelings" (or memumtoo's own feelings ?)

we are moving ahead with current property, decided the same. Understanding that we do need to compromise in few things but after all thoughts its good one actually. And thank you for the support, even this thread helped me a bit to rethink few factors too

Paddytheman

Hope it all works out for you