This article discusses what to do when a home sale falls through, including options for compensation, the process of re-listing a home, and potential fees incurred by solicitors and estate agents. It provides valuable information for anyone who has experienced a failed home sale and is looking for guidance on how to move forward.
Sale fall-throughs: before and after exchange
Selling or buying a property involves various stages where a sale can fall through, presenting challenges for both parties.
- Pre-Exchange Fall-Throughs: Changes in the buyer’s circumstances or issues with the survey report can cause a sale to collapse before the exchange of contracts.
- Post-Exchange Fall-Throughs: After exchange, the process becomes more complicated and costly. Buyers could face legal action for breach of contract, while sellers may incur solicitors’ fees.
- Buyer Pulling Out: Depending on the circumstances, the seller might retain the deposit if the buyer backs out.
- Seller Pulling Out: Sellers may have to compensate the buyer if they withdraw from the sale.
To prevent deal-breakers, maintaining open communication with the other party and their solicitor is crucial in resolving any issues that arise.
What happens if my buyer pulls out?
In the property selling process, the buyer’s decision to pull out before exchange holds no legal obligation, preventing the seller from taking legal action. However, post-exchange, if the buyer withdraws, it constitutes a breach of contract, entitling the seller to retain the deposit and possibly sue for financial losses incurred. Valid reasons like a failed mortgage application may lead to negotiation rather than legal action. If the buyer’s withdrawal is due to survey-related issues, the seller might need to address defects or consider price adjustments to salvage the sale. Open communication and proactive resolution of issues can prevent a sale from failing.
Do solicitors charge if a home sale falls through?
When a property sale falls through, solicitors may charge fees for the services they have provided up to that point, including conducting searches, preparing contracts, and negotiating with the other party’s solicitor. The exact amount of these fees can vary, so it’s essential for sellers to review the terms of the engagement letter and seek clarification if needed. Some solicitors offer a “no sale, no fee” arrangement, waiving charges if the sale fails due to reasons beyond the seller’s control. Alternatively, sellers may opt for insurance to cover solicitor fees in case of a failed sale, though costs and coverage can differ. It’s crucial to discuss fees and coverage options with the solicitor beforehand to avoid any surprises and be aware of the seller’s obligations in such circumstances.
Do estate agents charge when a home sale falls through?
When a property sale falls through, estate agent fees can be determined by the agreement between the seller and the agent. Some estate agents may charge a fee for services rendered up to that point, including viewings, marketing, and negotiations with potential buyers. On the other hand, some agents may offer a “no sale, no fee” arrangement, waiving charges if the sale fails due to reasons beyond the seller’s control. Estate agent fees can vary depending on the agent and services provided, making it crucial to review the agreement and seek clarification when needed. Sellers might also consider purchasing insurance to cover estate agent fees in case of a failed sale, though costs and coverage can differ. Discussing fees and coverage options with the estate agent upfront helps avoid surprises and ensures sellers are aware of their obligations in such circumstances.