Seller Pulls Out On Exchange Day

[Gigantic Purple Slug]

Frankly, that is BEYOND CRAZY - someone should take the Bozos to international court

Here's how it works in HK

+ You put down a deposit immediately when you agree to buy, and then within two weeks,

you put down "the rest of 10%" and then have a contract.

There is a brief period of a few days up to that 10% contract day, when EITHER side has the

ability to pull out, but a penalty is payable.

As an example, last year I agreed to pay HK$4.05 million for a flat, and put up a deposit of

HK$100,000 on a Thursday, I think it was. On Sunday, the agent phoned me and said,

"Congratulations, you just made; $100,000."

"Why's that?," I asked.

"The seller has pulled out, and you will get your deposit back, plus the same again."

I was mildly disappointed. But I used the money to buy another flat instead, which I have

now agreed to resell at the end of a 12 month tenancy.

On the second flat, I sold for a small profit, which is after certain expenses. I think my net

profit, ignoring the cash flow I made on renting it, will come out being a bit less than the easy

HK$100,000 that I made last year, on the "failed sale."

You Brits need to bring your antiquated sales system into the 20th century, and then someday

think about moving into the 21st century too.

Meantime, Rip-Off-Britain Rules!

+1. Someone posted on here that they have a similar system in Italy.

With rules like ours its no wonder moving house is reckoned to be one of the most stressful life experiences.

Will the government do anything about it .....?

Not if the surveyors have anything to say ...

[Mildura]

You Brits need to bring your antiquated sales system into the 20th century, and then someday

think about moving into the 21st century too.

It'll have to get in the 19th first

Rather than mucking about with HIPs, which do not appear to serve any significant purpose to anyone, something uselful could have been achieved. But that would be asking too much of our dear elected representatives, wouldn't it??!

[Mildura]

With know-it-all non-listeners like Brown "running the show", it is not surprising that nothing happens.

But I wonder sometimes if the current inefficiency suits someone.

In HK, where the system is so efficient, agents commissions are lower: 1% (paid by each side),

and that is negotiable,

What do pirates, whoops, Estate Agents charge in the UK?

That would come down if the system were more efficient, I reckon, since the job would get easier.

I think you're right. As UK EAs work on a 'no-sale, no-fee' basis, we have to cover the cost of abbortive sales out of the fees we do receive. If a better system were in place whereby sales that fall through could be reduced dramatically or even eliminated, then fees would likely come down.

1.5% of the eventual sale price is typical in the UK right now.

[Mildura]

that is a change.

Only the seller pays that, right?

Correct.

I believe that in terms of a % rates are relatively low, compared to some other countries.