Oh , it really isn`t ,notice the new rash of Sold STC, subject to conclusion , or SSCM, sold subject to conclusion of missives.
Sold in Scotland is just like England now, Sold is when the money is in your bank...
but the point at which you can back out without paying the other party's expenses is, I think different. After an Englishman's word is his bond - except when buying a house.
examination
interpreting
Me, get a survey to satisfy the mortgage provider and buy suitable building insurance. If either of those can't be met walk away. Remember the property isn't 100% yours until you have settled the mortgage.
It comes down to signing the Missives which buyers now delay to day of completion or near as possible. Lenders being pedantic is another hassle.
If your a cash buyer make sure the vendor is aware.
Gazumping and Gazundering...
After centuries of development would think system would be better than it is , get considerably more protection buying a tin of beans.
The best deals are to be had where you can't get either. Like anything in life, what's best depends on your circumstances. A policy of walking away from houses that need work does seem a bit anti-diy though.
NT
Three fallen through sales, two purchases that fell through, six offers made, over thirty properties viewed; I've learned a lot these two years past.
Do as much research as you can, ideally before making an offer, before instructing solicitors etc.
Study local maps, lookup local area on web (many villages etc have own website). Local papers online. Check council websites for planning applications: not just current but for the possible history of the propery. It only costs £3 to check the title at land registry. Fllod maps can be found at the environment agency website. Check if listed building.
I have mixed feelings about surveys. It seems you are paying largely for the professional indemnity insurance, the report will be so full of caveats and arse covering pieties that anything really important may be lost in the noise. If possible arrange to meet the surveyor on site immediately after he has done, you may get more sense face to face than will be committed to a written report.
There's a new problem - smaller "affordable" properties like flats are getting snapped up on the first day of marketing.
So you are up against people who steam in with an offer and either won't do much checking or will drop the deal if they find something later.
This looks like it is going to encourage people to make "weak" offers (with half an intent to back out) just to secure their place in the process.
In article , AnthonyL scribeth thus
Oooh! 'err missus;!...
Was it fun?....
If you can't get insurance that indicates a serious problem with the propetry not a place "needing a bit of work". Amongst other things it means it's in a flood zone, has serious structural problems, close to a quickly erroding coastline, etc.
In message , Dave Liquorice writes
Not necessarily. My brother is in the process of selling his house, and the whole business is becoming a nightmare due to an insurance claim for a damaged/collapsed drain at least ten years ago. To cut a long story short, one back corner of the attached garage started to move, or 'subside'. Easily repaired, by rebuilding the drain. However, the word subsidence in now on the property records, and he cannot change insurer, as the first question new insurers ask is any history of subsidence? Yes but ... no buts sir, phone down.
To sell, he has to obtain a certificate from his current insurer, confirming they will continue to insure in the name of the new owner, at almost any rate they care to pluck out of the air.
He wishes now, with hindsight, he had paid for the original repair himself, and not contacted the insurers.
it indicates a problem, but for some of us within the realm of diyable. Certainly for the occasional weekend diyers its well beyond them.
I came to the conclusion that was true for just about all insurable events. The premiums asked for on properties with a history of issues just don't make sense. I expect they charge so much because mortgage payers are effectively trapped.
NT
Been there, done that, know how he feels.
Oh, I know all about that at first hand. Sept 2013 flat on market, 40 viewing in first 7 days, half a dozen offers at asking price: buyer instructs solicitors but then goes away and nothing happens for six weeks, then finally arrages survey and then pulls out. Oct 2014, go away for a month, leave agent to arrange ? viewings, come back to several offers, accept offer at above asking price. Mortgage approved, seems on trackj to exchange early in new year. Buyer's solicitor doesn't make contact with mine until February, mid march the buyer suddenly decides to have survey, end march buyer's mortgage offer expires. And he wonders why I am not prepared to proceed if he gets a new mortgage offer.
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Anyone think that whole system needs a BIG kick up the arse?...
Mortgage
I'm sure you would have done if they had paid say a 10% non-returnable deposit with conditions that completion was to be achieved within 3 months of the deposit being agreed and that the deposit had to be paid withing 7 days of the agreeement (note 7 days not 7 working days).
The system can work very well and move fairly quickly, the local searches can be the slow bit. How ever to get things shifting you have to be proactive and keep badgering your solicitor to progress things and the buyers have to respond to requests in a timely manner. I can't see why you can't place an expiry date on the Acceptance of an offer.
"How to buy a house", "What is a mortgage?" etc are not taught at school, so most people haven't a clue and expect their solicitor to "just do it". But the solicitor only acts on instruction, no instruction - no action.
I find the simple solution is to leave the house on the market until contracts are exchanged. Nothing like a bit of competition to sharpen responses!
which is why "sold" doesn't appear on the board until it really is. "Under Offer" means just that.
As much a novice I am in this game if I suspected that my vendor was doing that I would have no reservation in continuing my search for a new house and withdraw from that sale if I found something else.
My nephew is trying to get on the property ladder in London. He can just afford to buy something - everytime he gets an offer accepted he gets gazumped a week or two later.
I saw one house on sale by "special auction" which purportedly circumvented this merry go round. Something along the lines of "sealed bids", deposits and 4 weeks deadline to completion.
Why are searches such an issue? Isn't it all yet computerised? What happened to the house sellers pack? Why does every buyer who wants a survey still have to arrange their own RICS approved? Surely one can be held "in trust" by RICS or similar? I'm now going to be faced with a dilemna that it is likely that the flat roof extension is going to need re-felting ~ ?2k. Do I renegotiate the purchase price having shook hands on the deal?
that depends whether 2K is material to the price or not
tim
That's why the house stays on the market. Either you want it or you don't. If you can't exchange contracts, an offer is worthless.
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