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Enquiry Re Pulling Out Of A Purchase


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Please can you knowledgable people give some advice.

When is the latest a vendor can pull out with no financial penalty at all?

Thanks

the vendor faces no financial penalty as far as i understand.

the buyer can pull out until exchange when a deposit is normally handed over.

the vendor offers no such security and the breach of contract after exchange would have to be pursued through the court for whatever good that may be.

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if you drop out after exchange then you lose your deposit. Normally you are asked to provide 10% at the time of signing.

Is this you? what are the circumstances?

its not me, someone i work with. they are getting cold feet, haven't exchanged yet. they thought the deposit could be returned after exchange but it seems not, so they are best not to excahnge unless absolutely certain.

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You pull out one day before exchange when your seller has found their dream home and is also about to exchange too.

Ideally, 'she' will have fallen in love with the kitchen and got terribly emotional about the whole thing.

You then say that the bank has pulled your mortgage deal and you've got 20k less to spend.

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if you drop out after exchange then you lose your deposit. Normally you are asked to provide 10% at the time of signing...

Yes, but in theory the seller can require you to honour your contract and complete.

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Yes, but in theory the seller can require you to honour your contract and complete.

IF you have signed then yes but inreality it is hard to enforce and requires court action so the vendor will normally just take the deposit and treat themselves whuile the ea remarkets.

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its not me, someone i work with. they are getting cold feet, haven't exchanged yet. they thought the deposit could be returned after exchange but it seems not, so they are best not to excahnge unless absolutely certain.

thats about the size of it. A deposit is exactly that and none refundable. They have probably only paid for a survey so far, pennies to walk away from if they are not sure.

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if you drop out after exchange then you lose your deposit. Normally you are asked to provide 10% at the time of signing.

Is this you? what are the circumstances?

very risky as you are still liable for the other 90% and if the seller then found someone else and the price was less they would sue for the difference.

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IF you have signed then yes but inreality it is hard to enforce and requires court action so the vendor will normally just take the deposit and treat themselves whuile the ea remarkets.

This is true.

Also worth pointing out that failures to complete are incredibly rare.

In my ten years I did not see one.

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if you drop out after exchange then you lose your deposit. Normally you are asked to provide 10% at the time of signing.

Is this you? what are the circumstances?

The vendor could also pursue the buyer for the outstanding sum, plus interest (the rate will be specified in the contract), plus incurred costs as specified in the contract.

The buyer needs to read the contract, and not exchange if there's the slightest doubt in his/her mind.

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IF you have signed then yes but inreality it is hard to enforce and requires court action so the vendor will normally just take the deposit and treat themselves whuile the ea remarkets.

Yes, it would require court action to enforce and the vendor might prefer not to bother ... but since chained contracts are generally exchanged simultaneously, there are multiple chances for someone to sue, with each link in the chain then being forced to sue in turn. As mentioned it's extremely rare; each time I've bought, my solicitor has insisted on seeing the source of funds before proceeding with the exchange.

And since the funds are there, then if something does somehow go wrong, suing isn't necessarily a non-starter...

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  • 417 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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