Property and land purchase
Discussion
Hello all,
I've recently had an offer accepted on a property, and land, by separate negotiation, I made it clear to the estate agent that the purchase would be for both, as one was no good without the other. The land is behind the property and being sold by the local farmer, separate solicitors were involved with the transactions, I've paid my solicitor their due fees to carry out searches etc, paid for a survey, expecting everything to go relatively smoothly, until I receive a phone call from the estate agent, saying the farmer is pulling out of selling the land.
Now I'm substantially out of pocket because of this, with nothing to show for the expense paid out.
My question is, is there any recourse against the farmer who pulled out, how can someone offer property / land for sale then withdraw, causing financial impact to the parties left behind ?
I've recently had an offer accepted on a property, and land, by separate negotiation, I made it clear to the estate agent that the purchase would be for both, as one was no good without the other. The land is behind the property and being sold by the local farmer, separate solicitors were involved with the transactions, I've paid my solicitor their due fees to carry out searches etc, paid for a survey, expecting everything to go relatively smoothly, until I receive a phone call from the estate agent, saying the farmer is pulling out of selling the land.
Now I'm substantially out of pocket because of this, with nothing to show for the expense paid out.
My question is, is there any recourse against the farmer who pulled out, how can someone offer property / land for sale then withdraw, causing financial impact to the parties left behind ?
Jeff J said:
Hello all,
I've recently had an offer accepted on a property, and land, by separate negotiation, I made it clear to the estate agent that the purchase would be for both, as one was no good without the other. The land is behind the property and being sold by the local farmer, separate solicitors were involved with the transactions, I've paid my solicitor their due fees to carry out searches etc, paid for a survey, expecting everything to go relatively smoothly, until I receive a phone call from the estate agent, saying the farmer is pulling out of selling the land.
Now I'm substantially out of pocket because of this, with nothing to show for the expense paid out.
My question is, is there any recourse against the farmer who pulled out, how can someone offer property / land for sale then withdraw, causing financial impact to the parties left behind ?
Welcome to the world of buying land.I've recently had an offer accepted on a property, and land, by separate negotiation, I made it clear to the estate agent that the purchase would be for both, as one was no good without the other. The land is behind the property and being sold by the local farmer, separate solicitors were involved with the transactions, I've paid my solicitor their due fees to carry out searches etc, paid for a survey, expecting everything to go relatively smoothly, until I receive a phone call from the estate agent, saying the farmer is pulling out of selling the land.
Now I'm substantially out of pocket because of this, with nothing to show for the expense paid out.
My question is, is there any recourse against the farmer who pulled out, how can someone offer property / land for sale then withdraw, causing financial impact to the parties left behind ?
If the situation arises again, buy an option on the land for a nominal fee which gives you an exclusive right for a defined period to buy it.
Might be worth going to see the farmer and asking him what the issue is. It's probably money, but there is an outside chance that it is resolvable.
Jeff J said:
Hello all,
My question is, is there any recourse against the farmer who pulled out, how can someone offer property / land for sale then withdraw, causing financial impact to the parties left behind ?
They can because we're in England.My question is, is there any recourse against the farmer who pulled out, how can someone offer property / land for sale then withdraw, causing financial impact to the parties left behind ?
Sellers (and buyers) can pull out at any point up to the exchange of contracts, with no penalty.
Louis Balfour said:
Jeff J said:
Hello all,
I've recently had an offer accepted on a property, and land, by separate negotiation, I made it clear to the estate agent that the purchase would be for both, as one was no good without the other. The land is behind the property and being sold by the local farmer, separate solicitors were involved with the transactions, I've paid my solicitor their due fees to carry out searches etc, paid for a survey, expecting everything to go relatively smoothly, until I receive a phone call from the estate agent, saying the farmer is pulling out of selling the land.
Now I'm substantially out of pocket because of this, with nothing to show for the expense paid out.
My question is, is there any recourse against the farmer who pulled out, how can someone offer property / land for sale then withdraw, causing financial impact to the parties left behind ?
Welcome to the world of buying land.I've recently had an offer accepted on a property, and land, by separate negotiation, I made it clear to the estate agent that the purchase would be for both, as one was no good without the other. The land is behind the property and being sold by the local farmer, separate solicitors were involved with the transactions, I've paid my solicitor their due fees to carry out searches etc, paid for a survey, expecting everything to go relatively smoothly, until I receive a phone call from the estate agent, saying the farmer is pulling out of selling the land.
Now I'm substantially out of pocket because of this, with nothing to show for the expense paid out.
My question is, is there any recourse against the farmer who pulled out, how can someone offer property / land for sale then withdraw, causing financial impact to the parties left behind ?
If the situation arises again, buy an option on the land for a nominal fee which gives you an exclusive right for a defined period to buy it.
Might be worth going to see the farmer and asking him what the issue is. It's probably money, but there is an outside chance that it is resolvable.
If its a farmer 90% chance its about money - in my experience farmers and little old ladies are the ones that dick you about the most
Thanks for the replies.
I'm based in Wales, which I think may make a difference.
I viewed the property with the estate agent, the cottage was to my liking, there was not enough land area for what I wanted to do, so I explained this, the estate agent went on to say an acre of land behind is also available for sale by separate negotiation by the farmer who owns the field adjacent to the property.
What I understand from the estate agent, is that the farmers son has become involved, and through their accountant, it was suggested that it was not worth their while selling that acre of land, but might sell it in the future.
I'm based in Wales, which I think may make a difference.
I viewed the property with the estate agent, the cottage was to my liking, there was not enough land area for what I wanted to do, so I explained this, the estate agent went on to say an acre of land behind is also available for sale by separate negotiation by the farmer who owns the field adjacent to the property.
What I understand from the estate agent, is that the farmers son has become involved, and through their accountant, it was suggested that it was not worth their while selling that acre of land, but might sell it in the future.
Jeff J said:
What I understand from the estate agent, is that the farmers son has become involved, and through their accountant, it was suggested that it was not worth their while selling that acre of land, but might sell it in the future.
I'm not fluent in Welsh but I think that means they've decided you're not paying enough.Jeff J said:
I was paying what the price farmer asked for. He was not negotiating the price, pay what I want or leave it.
I'm not suggesting you've done anything wrong. I am a farmer's son, I point out to my father that some things are worth more than he thinks. Would it be worth asking the agent at what price it might be worth then selling? You'll feel shafted now but you will have the house and land.
blueg33 said:
Louis Balfour said:
Jeff J said:
Hello all,
I've recently had an offer accepted on a property, and land, by separate negotiation, I made it clear to the estate agent that the purchase would be for both, as one was no good without the other. The land is behind the property and being sold by the local farmer, separate solicitors were involved with the transactions, I've paid my solicitor their due fees to carry out searches etc, paid for a survey, expecting everything to go relatively smoothly, until I receive a phone call from the estate agent, saying the farmer is pulling out of selling the land.
Now I'm substantially out of pocket because of this, with nothing to show for the expense paid out.
My question is, is there any recourse against the farmer who pulled out, how can someone offer property / land for sale then withdraw, causing financial impact to the parties left behind ?
Welcome to the world of buying land.I've recently had an offer accepted on a property, and land, by separate negotiation, I made it clear to the estate agent that the purchase would be for both, as one was no good without the other. The land is behind the property and being sold by the local farmer, separate solicitors were involved with the transactions, I've paid my solicitor their due fees to carry out searches etc, paid for a survey, expecting everything to go relatively smoothly, until I receive a phone call from the estate agent, saying the farmer is pulling out of selling the land.
Now I'm substantially out of pocket because of this, with nothing to show for the expense paid out.
My question is, is there any recourse against the farmer who pulled out, how can someone offer property / land for sale then withdraw, causing financial impact to the parties left behind ?
If the situation arises again, buy an option on the land for a nominal fee which gives you an exclusive right for a defined period to buy it.
Might be worth going to see the farmer and asking him what the issue is. It's probably money, but there is an outside chance that it is resolvable.
I usually draft my own. Having one challenged is vanishingly rare and on the odd occasion that one has been challenged it has been unsuccessful.
Sellers know that they are contractually bound and most then consider that they have no way out, so they don't try.
C Lee Farquar said:
I'm not fluent in Welsh but I think that means they've decided you're not paying enough.
Particularly as once you (or someone else) has already bought the house- the house owners ONLY option to get more land is from farmer..At the moment- you can walk away....
Balance of power in negotiation changes once you are committed to the house
O/P: Do you understand the legal concept of a ransom strip?
https://www.timms-law.com/commercial-property-what...
What the farmer's son might be trying is (I suppose) an 'anti-ransom' strip........
ie By purchasing the house you have access to a potentially very valuable piece of land the farmer owns.
And the farmer's son might see you attempting to buy a potential development plot at agricultural land prices..... and wants a piece of the action.
https://www.timms-law.com/commercial-property-what...
What the farmer's son might be trying is (I suppose) an 'anti-ransom' strip........
ie By purchasing the house you have access to a potentially very valuable piece of land the farmer owns.
And the farmer's son might see you attempting to buy a potential development plot at agricultural land prices..... and wants a piece of the action.
alfaspecial said:
O/P: Do you understand the legal concept of a ransom strip?
https://www.timms-law.com/commercial-property-what...
What the farmer's son might be trying is (I suppose) an 'anti-ransom' strip........
ie By purchasing the house you have access to a potentially very valuable piece of land the farmer owns.
And the farmer's son might see you attempting to buy a potential development plot at agricultural land prices..... and wants a piece of the action.
Farmers are illogical like that.https://www.timms-law.com/commercial-property-what...
What the farmer's son might be trying is (I suppose) an 'anti-ransom' strip........
ie By purchasing the house you have access to a potentially very valuable piece of land the farmer owns.
And the farmer's son might see you attempting to buy a potential development plot at agricultural land prices..... and wants a piece of the action.
The farmers land must have another access.
Maybe the farmer's son sees long term development potential for the whole field.
The exchange of contracts was going to be both the property and land simultaneously.
I've looked up the ransom strip of land, thanks for the pointer. don't think this ransom strip would have worked, because the land is directly behind the property.
Looking what the price of land is going for, I would have been paying over and above for it.
Also I did suggest to the estate agent about Increasing my offer for the land, him saying the farmer will still not sell.
I've looked up the ransom strip of land, thanks for the pointer. don't think this ransom strip would have worked, because the land is directly behind the property.
Looking what the price of land is going for, I would have been paying over and above for it.
Also I did suggest to the estate agent about Increasing my offer for the land, him saying the farmer will still not sell.
The farmer's son may have pointed out to dad that unless a very significant premium price is paid then the net receipt after Capital Gains Tax, Red Book Valuation for HMRC/ CGT reporting, legal fees, etc it may not be worth selling a one acre parcel.
How did you assess the value of the extra land? Agricultural value to the farmer or a percentage of the uplift in value to the cottage being purchased?
How did you assess the value of the extra land? Agricultural value to the farmer or a percentage of the uplift in value to the cottage being purchased?
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