Are They Being Lead On !!!

[babynan]

Hi,

I wonder if any one can help, I am trying to help some friends get some answers because they dont know which way to turn

I will try to explain as briefly as possible but please bear with me if it goes on a bit as I want to try and be as precise as I can.....

 

My friends put their house on the Market early last Nov (2007) by the end of Nov thay had an offer, eventually price was agreed by all parties (this was all prior to HIPS). My friend explained that they had purchased a property abroad and intended to relocate, they were told that the sale would go through very quickly as there was no chain etc on either side. My friends told the agents they would be signing the contract oversea's for the pomise of sale and needed a rough idea of when sale in UK would be completed, they were assured that it would be completed by Mid Jan 2008. They duly signed Promise of Sale overseas and had a completion date for that property in Mid Feb. The lady concerned resigned from work, then after Chrsitmas they were told once again that Mid Jan would be completion time, so they started to put their stuff into storage.

mid Jan approached...nothing, Estate agent assured them that buyer really wants the place but now looked as if it would be delayed until mid/end of Feb, so my friends applied (and managed to get) an extension on the promise of sale abroad, they were going to have this extension until the end of FEb, but when the Agent from overseas spoke with the UK Estate Agent he was told that it would all most certainly be completed by the 9th March, so the extension was arranged for that date. In the UK still nothing has happened, my friends have had no feedback, their solicitors just say it has nothing to do with them as it relates to the transfer of the money. When they can get hold of the agent he says there is no problem just a delay with the transfer of money for the buyer. Now the agent form overseas has spoken again with the UK agent and he was told that the buyer had problems with the mortgage because he normally dealt with Northern Rock..............

They then went on and told him that a couple of weeks ago the buyer approached another lender and eveything is working out ok and all is being processed (they have still not told the seller/my friends this.) They also told the overseas agent that everything will be completed now by the 14th Mar............ Agent overseas not sure if he will be able to obtain a further extension on the promise of Sale there.

My friends managed to speak with the estate agent in the UK (he still has not metioned to them about the buyer going somewhere else for a mortgage) and he has told them that he is 90% certain that all will be completed by the 14th Mar:mad:

 

My questions/concerns are as follows:

If the buyer did go somewhere else for a Mortgage a couple of weeks ago, surely by now he would know if this has been approved?

If this has been approved, then why would there need to be a further delay?

If it has not yet been approved, what is the normal time frame when applying for a mortgage before you are informed if you can have it?

Why is the agent telling my friends that he is only 90% sure that ecverthing will be completed by the 14th Mar??

And is their solicitor legally able to find out if the buyer does have a mortgage or not?

Also would the buyer have had to pay any sort of deposit by now (dont know if this is done of not in the UK)?

 

Sorry if I have gone on a bit, but as you can image my friends are so stressed because they are having to look at bridging loans etc, which as we all know are expensive....and they do not have a clue as to what is going on, should they ask the agent to start letting others view the property again??? where can they go to get the answers that they need, or is this completely normal?

Please could someone offer some advice/help, would really appreciate it.

Thanks in advance

[buzby]

Whether the buyer managed to obtain a mortgage from Company A or B, this is of no concern to the seller (apart from it's nice to know). Once a loan has been approved in principle some firms put in set processing times (in one case of 4 weeks!) simply because that was how they worked. That said, you can get an agreement in principle and a mortgage declined for very many reasons, lenders can be fickle, or discover something they don't like about their customer before the money changes hands. It is none of the sellers solicitor's business of the financial affairs of the purchaser UNLESS they have, as part of the documentation required identity and financial (credit file) searches to be disclosed.

 

A deposit isn't usually paid, but if there are ongoing delays, the sellers solicitor should have already put in place procedures to cover any shortfall to the original date of entry.

[babynan]

HI Buzby,

 

Many thanks for your reply, you have at least helped me//my friends understand a bit more of how these things work, they were just very concerned that the estate agent was just giving them the run around (although it would not really be in his interests to do this as he also wants the sale for his commission), but they were getting concerned as to if they should consider at this stage to allow another potential buyers veiw the property..... but going by what you have said then I will let them know that they need to just bear with things and let them run there course.

Once again, thanks for your help:)

[buzby]

It may seem unfair, but can I suggest you LET others view the property. I have twice been caught by potential purchasers who could not raise the mortgage, so you could suggest to the original buyer that you need to impose a deadline (say 7 days) to formally agree to the sale and be legally committed, or you will re open the viewing. You can never have enough buyers, and it is unfair on the seller to be kept waiting. You're NOT saying your won't sell to the original purchaser, simply that they lose their right to exclusivity, so whoever completes the deal get's the keys!

[babynan]

Hi Buzby,

 

Yes, thanks for that, it seems a good idea, and fair to both parties, more so as the original offer was made last Nov...............

 

Thanks:)

[buzby]

BTDT - For what it's worth, none of my problem purchasers actually came through - it was always a fresh buyrt (with no problems!).

[Conniff]

I think I would do this as well or maybe even put it back on the market. These are obviously people who have gone shopping before having an agreed mortgage and I feel you could end up the disappointed ones.

[patdavies]

They should also remember that the estate agent works for the seller - not the buyer. The estate agent should be hassling the buyer, etc. and representing the seller's interests at all times.