02GF74
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| posted on 22/1/08 at 02:07 PM |
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buying a house
let's hypothetically I have found a house I wantto buy but need to sell mine to fund it.
I make an offer - at what point, if any, does it become legally binding? i.e. the agreement is such that price is agreed and seller will sell house
to me and not someone else?
Basically and hypothetically, I am trying to find out how I can avoid having a buyer for my and be force to sell &move out of my house if I am
unable to buy the house I am after.
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BenB
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| posted on 22/1/08 at 02:14 PM |
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Only becomes legally binding at completion itself. Ridiculous really but it's true..... Hence you get people threatening to pull out with a few
hours to go unless you drop the price by a considerable amoutn....
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paulf
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| posted on 22/1/08 at 02:15 PM |
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Its not legally binding until contracts have been exchanged ,ususally a bought a month before completion.
In scotland i think it works differntly and you are liable from making an offer to purchase.
Paul.
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carpmart
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| posted on 22/1/08 at 02:17 PM |
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Legally - Be careful as you have some penalties which kick in at exchange of contracts before you complete.
Morally - Don't mess people about unnecessarily! Think if the shoe was on the other foot, how would you feel!
You only live once - make the most of it!
Radical Clubsport, Kwaker motor
'94 MX5 MK1, 1.8
F10 M5 - 600bhp Daily Hack 
Range Rover Sport - Wife's Car
Mercedes A class - Son's Car
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Mr Whippy
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| posted on 22/1/08 at 02:18 PM |
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yip in scotland you can get yourself in a right load of trouble just saying your buying it, next thing they take you to court if you try and pull out.
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onzarob
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| posted on 22/1/08 at 02:20 PM |
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quote:
Originally posted by 02GF74
let's hypothetically I have found a house I wantto buy but need to sell mine to fund it.
I make an offer - at what point, if any, does it become legally binding? i.e. the agreement is such that price is agreed and seller will sell house
to me and not someone else?
Basically and hypothetically, I am trying to find out how I can avoid having a buyer for my and be force to sell &move out of my house if I am
unable to buy the house I am after.
Its all on honour until you excahnge contracts, then you must pay on the day or lose money 
your basically discribing a house buying chain. Sell one to buy another and the one buying yours is doing the same., this can be repaeted many times.
It just takes one to pull out and the rest may jump too,then no one moves!.
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Dangle_kt
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| posted on 22/1/08 at 02:26 PM |
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Did someone say GAZUMP?
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delboy
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| posted on 22/1/08 at 02:34 PM |
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In Scotland you are not legally obliged to buy until you have concluded missives. This is basically you making a written offer and the purchaser
agreeing to that offer and any condition contain in the offer. In practice an offer usually receives a response of conditional acceptance where the
two parties take some time to agree all of the conditions, thereafter the agreement , or missves are concluded. Up until this point your could
withdraw stating that you cannot reach agreement, I.e. although an offer has been made it has not been accepted. Howver, once thats done you are
obliged to buy and are likely to be pursued by the seller for all costs in re marketing etc if you don't.
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DarrenW
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| posted on 22/1/08 at 03:24 PM |
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Back to original Q, assuming England.
A lot depends on who you are dealing with, the offer made etc.
For example im in rented. Found a house. Offered 30% under asking, was promptly requested to go away. Upped to 25% off, offer accepted and i was given
exclusivity. however im not legally bound until i exchange contracts.
Had i not been in rented and had to sell first i would be fully expecting the vendor to say yes, we will accept you offer but will not remove from
market until you have a strong offer on your own. At that point the agents will check out the chain and once satisfied take the house off the open
market.
Basically there are no golden rules however once a sale is on and exclusivity is granted (ie houses are taken off the open market) then i for one
would advocate that a gentlemens agreement is in place and should be upheld unless something outside of your control should happen before completion
(like family bereavement, redundancy etc)
If you get a strong buyer for your house and lets say the chain falls through 1 day before contracts are exchanged then you simply dont sign / sell.
Even when you have signed the contracts, they are not live until they are exchanged, so right up until this point you can pull out (im not saying you
can pull out with nothing to pay as earchs, surveys etc will be paid but you wont lose our house). Once exchanged the house is sold and all sorts of
penalties come into play if you dont complete at a given time (ie pay up and move).
[Edited on 22/1/08 by DarrenW]
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onzarob
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| posted on 22/1/08 at 03:24 PM |
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quote:
Originally posted by Dangle_kt
Did someone say GAZUMP?
No
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locoboy
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| posted on 22/1/08 at 03:32 PM |
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quote:
Originally posted by Mr Whippy
yip in scotland you can get yourself in a right load of trouble just saying your buying it, next thing they take you to court if you try and pull out.
Thats the right way!
Stops people pissing about and wasting others time and effort.
Stops those with a champagne lifestyle on a lemonade income annoying other folks too!
[Edited on 22/1/08 by locoboy]
ATB
Locoboy
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