Legal advice - backing out of a house purchase

[Deadbeat]

I wonder if anyone can help me – I know nothing about the legality of buying houses. My partner’s mum has been buying a house in Wales with her partner, however they’ve just had a huge falling out and he’s no longer moving in. Without him, she can’t afford the house.

The keys change hands on Wednesday, after a month long period since the final agreement. She’s so far paid £17.5k deposit and £4k solicitor’s fees into this house. At this late stage, is there any way she could recoup any of that money if she backed out now?

Any advice or suggested reading would be very much appreciated.

 

[scorza]

Need to talk to her solicitor - that's what they're there for, but if I've understood your post correctly she's already exchanged, in which case she basically can't back out now (I've heard of it happening, but she'll be liable for massive costs that you haven't considered yet).

My guess is completing the sale then putting it straight up on the market again will be what she might have to do.

 

[gjrc]

or go for an extended completion and flip it between exchange complete.

the vendor can keep the deposit although it can be a court process.

she will be liable for costs for sure!

 

[Peerzy]

My understanding is as it appears she has exchanged the minimum she would lose out on would be what she has paid so far (deposit and fees), but as she has signed a contract and agreed to pay the rest she could be sued for not completing (no idea how likely that would be).

She needs to speak to her Solicitor.

Best bet would be to complete and try to sell straight away.

 

[Adam]

Nasty position to be in, it won't end well. You need to seek professional advice from the solicitor.

 

[Haggisman]

If they've exchanged contracts (as it sounds) then no unfortunately. I think Scorza's suggestion of selling again ASAP might be the best option, or would there be the option of her getting a lodger in to top up costs?

 

[Diagro]

She needs to do the right thing. Finish and resell
Think of the seller's. .. her backing out will screw up their life.

 

[Qitarah]

She really needs to be speaking to her solicitors, as soon as possible.

If shes exchanged contracts its gonna be messy, and money will most certainly be lost.

Either way she needs to be speaking to a professional asap. They will be able to explain all her options to her.

 

[grumpysculler]

Never mind getting back what she's put in, she's on the hook for far far more.

First step the seller would do is to serve a notice to complete. They then may sue for specific performance (a court would force her to buy).

She is liable for all costs incurred as a result of non-completion, all the way up the chain (the seller may not be able to buy and so that transaction would also fail, etc). The deposit is just a starting point, not the limit of liability.

She has the potential to make a lot of people's lives misery and incur MASSIVE financial penalties.

Don't do it.


NB - if joint purchase then his liability is joint and several with her.

 

[SpeedFreak]

Complete and resell immediately. If the Welsh market is anything like Bristol it will sell in a day.

 

[LOAM]

She has the potential to make a lot of people's lives misery and incur MASSIVE financial penalties.

Don't do it.


NB - if joint purchase then his liability is joint and several with her.

This ^. What is her partners contractual status in this?. Its fine that he doesn't want to move in but if his name is on it then he needs to pay half until its sold.

 

[D.P.]

The only way put of this is to complete and resell, otherwise she would be accountable for massive costs. Forget the deposit, that is only going to be a small part of the costs!

The only saving grace would be if her partners name is not he contract then he is liable for 50% of the costs. He may be able to buy his way out of the situation by paying half of the house value and being freed from the mortgage responsibility- but he will have no chance of doing that I assume.

 

[Cosimo]

Complete and resell immediately. If the Welsh market is anything like Bristol it will sell in a day.

This is the way to proceed after a word with the solicitor asap.

 

[Deleted member 651465]

I don't know the circumstances behind the fallout, but wouldn't it be best to sort out their relationship before selling a house she's bought, and incurring another few grand in fees

 

[Haggisman]

This ^. What is her partners contractual status in this?. Its fine that he doesn't want to move in but if his name is on it then he needs to pay half until its sold.

And if he's not on the contract, then what on earth is she doing buying a house in her sole name that she can't afford on her own?

 

[Jono8]

As has been said, seek legal advice, but essentially the only way out of this without having possible legal action taken against you is to complete then sell it immediately.

 

[Adam]

A lot of mortgage companies won't lend if the house has been bought in the past 6 months.

 

[Rroff]

Need more information really especially regarding what her partners contractual obligations (or not) are.

Sounds like too late to back out now though unless the seller is easy going and willing to cooperate (she'd lose the deposit anyhow unless they were kind hearted and for some it might be worth the extra money to relist it) - from the sounds of it pretty easy court win for them if she tries to turn around on the deal now.

 

[Trig]

She needs to do the right thing. Finish and resell
Think of the seller's. .. her backing out will screw up their life.

Not to be selfish but if she's not in the place to finish then she's not in the place to finish, her backing out might put the sellers back a bit but they still have a house to sell...

 

[Deadbeat]

Thanks for the feedback, folks. I haven't heard since this morning, but I'll pass on the advice tonight.