We've been gazumped - and lost £££ :-(
Discussion
Chaps...
After spending quite a few quid on the initial stages of a house purchase, we were Gazumped at the final stages. We lost the house we were buying, not to mention the money we had already spent on searches etc.
What can we do?
Absolutely nothing, because in this country it’s legal for it to happen. As buyers, we have no protection from it. It’s as simple as that.
It’s a risk that anybody buying a house will face, and something that causes a great number of people to lose money to on a daily basis.
We have to accept the fact that we can agree a deal, then pay for searches, surveys and more, but at any time, the seller can simply change their mind just because he feels like it. The buyer swallows the loss and the seller walks away having lost nothing!
...so back to square one for us albeit slightly lighter in the pocket and in 2 weeks time, if it wasn’t for good old mum and dad, I’d basically be homeless!
Having fallen victim of this Gazumping practice, I submitted an online-petition to the Government. I am pleased (...and somewhat surprised) to say that it's been accepted!
Maybe with a bit of support it might be possible to change things for the future… Who knows, but it’s certainly worth a shot!
If you get a free minute please take a second to read my petition - if you agree it would be great if you could you sign it
Thanks!
Geri.
http://petitions.pm.gov.uk/Gazumping/
(Also, please forward the link to anybody who you think may be interested - everybody in the UK who will ever buy a house!)
After spending quite a few quid on the initial stages of a house purchase, we were Gazumped at the final stages. We lost the house we were buying, not to mention the money we had already spent on searches etc.
What can we do?
Absolutely nothing, because in this country it’s legal for it to happen. As buyers, we have no protection from it. It’s as simple as that.
It’s a risk that anybody buying a house will face, and something that causes a great number of people to lose money to on a daily basis.
We have to accept the fact that we can agree a deal, then pay for searches, surveys and more, but at any time, the seller can simply change their mind just because he feels like it. The buyer swallows the loss and the seller walks away having lost nothing!
...so back to square one for us albeit slightly lighter in the pocket and in 2 weeks time, if it wasn’t for good old mum and dad, I’d basically be homeless!
Having fallen victim of this Gazumping practice, I submitted an online-petition to the Government. I am pleased (...and somewhat surprised) to say that it's been accepted!
Maybe with a bit of support it might be possible to change things for the future… Who knows, but it’s certainly worth a shot!
If you get a free minute please take a second to read my petition - if you agree it would be great if you could you sign it
Thanks!
Geri.
http://petitions.pm.gov.uk/Gazumping/
(Also, please forward the link to anybody who you think may be interested - everybody in the UK who will ever buy a house!)
[quote=Gallen (BPH)]Jeremy Kyle!
It's all in the wording of the petition!
Once a vendor has accepted an offer on a property (or land) and the buyers have financially committed themselves (for example paid for searches and/or other reasonble fees) I ask that, unless it is mutually agreed to discontinue with the purchase, it be made law that the seller must at least offer the buyer the opportunity to exchange within a certain time period of at least 1 week. If the vendor decides to pull out of the arrangement without offering a financially committed buyer the opportunity to exchange, the vendor automatically becomes liable for any reasonable costs incurred by the buyer.
[/quote]
fair enough...i agree thats a fair system!!
It's all in the wording of the petition!
Once a vendor has accepted an offer on a property (or land) and the buyers have financially committed themselves (for example paid for searches and/or other reasonble fees) I ask that, unless it is mutually agreed to discontinue with the purchase, it be made law that the seller must at least offer the buyer the opportunity to exchange within a certain time period of at least 1 week. If the vendor decides to pull out of the arrangement without offering a financially committed buyer the opportunity to exchange, the vendor automatically becomes liable for any reasonable costs incurred by the buyer.
[/quote]
fair enough...i agree thats a fair system!!
Edited by Jeremy Kyle on Monday 24th September 17:17
Edited by Jeremy Kyle on Monday 24th September 17:18
A major benefit of the Scottish system - once you've signed the missives then that's it, the mortgage noose is round your neck. No way out on either side. I can't imagine how 
off I'd be if I'd forked out all the costs to buy a house and then the sellers changed their mind. Or equally, I'd hate to be selling a house, accepted an offer and then jut before exchange find that your propery was the "banker" one that the buyers didn't really want but had in reserve just in case.
off I'd be if I'd forked out all the costs to buy a house and then the sellers changed their mind. Or equally, I'd hate to be selling a house, accepted an offer and then jut before exchange find that your propery was the "banker" one that the buyers didn't really want but had in reserve just in case.
Can you force my frigging buyer to complete as well? The last one got virtually to simultaneous exchange and completion (first time buyers mainly have no deposit now...) before changing his mind "I don't really like it" without even bothering to tell the agent.
The second one now looks to be stalling....Believe me if you think buying is stressful you want to try selling!
I'm surprised anyone's gazumping at the moment though, in your position I'd sit tight for three or six months, get a written mortgage offer in your sticky hand and watch the sellers come to you.
Actually I'm really surprised anyone is gazumping a buyer who's got that far in the process for a unknown hope of a potential sale at the moment. I'm buggered if I would the way the market is wobbling. I wonder if you worried them in some way?
The second one now looks to be stalling....Believe me if you think buying is stressful you want to try selling!
I'm surprised anyone's gazumping at the moment though, in your position I'd sit tight for three or six months, get a written mortgage offer in your sticky hand and watch the sellers come to you.
Actually I'm really surprised anyone is gazumping a buyer who's got that far in the process for a unknown hope of a potential sale at the moment. I'm buggered if I would the way the market is wobbling. I wonder if you worried them in some way?
Piglet said:
Can you force my frigging buyer to complete as well? The last one got virtually to simultaneous exchange and completion (first time buyers mainly have no deposit now...) before changing his mind "I don't really like it" without even bothering to tell the agent.
The second one now looks to be stalling....Believe me if you think buying is stressful you want to try selling!
I'm surprised anyone's gazumping at the moment though, in your position I'd sit tight for three or six months, get a written mortgage offer in your sticky hand and watch the sellers come to you.
Actually I'm really surprised anyone is gazumping a buyer who's got that far in the process for a unknown hope of a potential sale at the moment. I'm buggered if I would the way the market is wobbling. I wonder if you worried them in some way?
1000% correct. Anyone gazumping now needs their head read, what with prices dropping.The second one now looks to be stalling....Believe me if you think buying is stressful you want to try selling!
I'm surprised anyone's gazumping at the moment though, in your position I'd sit tight for three or six months, get a written mortgage offer in your sticky hand and watch the sellers come to you.
Actually I'm really surprised anyone is gazumping a buyer who's got that far in the process for a unknown hope of a potential sale at the moment. I'm buggered if I would the way the market is wobbling. I wonder if you worried them in some way?
Hold tight and wait for the drop.
Who knows...! ...all I know is we're 500 quid short and have no where to move to after October the 2nd!
...I could almost be persuaded to understand the buyer if he said "look, we've had a better offer we're accepting but seeing as you've paid out, here's your £500 back..." - would have sweetened it.
Imagine buying a car - You agree a price ...get an AA inspection and pay a deposit... Someone else comes up with an extra £500 and the seller accepts it, and keeps your money... No one would have it would they...
We feel like we've been bent over and forced to take it!
...now, about that spare room....? :P
...I could almost be persuaded to understand the buyer if he said "look, we've had a better offer we're accepting but seeing as you've paid out, here's your £500 back..." - would have sweetened it.
Imagine buying a car - You agree a price ...get an AA inspection and pay a deposit... Someone else comes up with an extra £500 and the seller accepts it, and keeps your money... No one would have it would they...
We feel like we've been bent over and forced to take it!
...now, about that spare room....? :P
Edited by Gallen (BPH) on Monday 24th September 18:01
[quote=Gallen (BPH)]Who knows...! ...all I know is we're 500 quid short and have no where to move to after October the 2nd! ...now about that spare room!
[/quote]
You may turn out to be eternally greatful for this!
Don't forget your seller has paid legal fees too yet felt that the other buyer was a better bet - if it was just gazumping they do need their head read. If you worried them as a buyer, right now with a potentially falling market I'd have ditched you too. Too many crap buyers around who are just time wasting.
I've told my buyer that I'll remarket next week if he doesn't complete, he's had 12 weeks to buy, that's enough for anyone.
[/quote]
You may turn out to be eternally greatful for this!
Don't forget your seller has paid legal fees too yet felt that the other buyer was a better bet - if it was just gazumping they do need their head read. If you worried them as a buyer, right now with a potentially falling market I'd have ditched you too. Too many crap buyers around who are just time wasting.
I've told my buyer that I'll remarket next week if he doesn't complete, he's had 12 weeks to buy, that's enough for anyone.
Edited by Piglet on Monday 24th September 18:01
Yes, just gazumping unfortunately - the seller had a better offer. We offered to complete within a week.
...Just adding that the petition does not commit the seller to the sale 100% bacause I thought about it from both angles - selling and buying, to take in to account time wasters and people dragging heels.
It's worth a read. It would really just make things fairer.
"Once a vendor has accepted an offer on a property (or land) and the buyers have financially committed themselves (for example paid for searches and/or other reasonble fees) I ask that, unless it is mutually agreed to discontinue with the purchase, it be made law that the seller must at least offer the buyer the opportunity to exchange within a certain time period of at least 1 week. If the vendor decides to pull out of the arrangement without offering a financially committed buyer the opportunity to exchange, the vendor automatically becomes liable for any reasonable costs incurred by the buyer."
This means that, if the seller has a timewaster or similar, he can offer them the opportunity to exchange within a week. If the buyer fails to do this, then the seller is free from any obligation or costs, and can walk away from the sale.
...Just adding that the petition does not commit the seller to the sale 100% bacause I thought about it from both angles - selling and buying, to take in to account time wasters and people dragging heels.
It's worth a read. It would really just make things fairer.
"Once a vendor has accepted an offer on a property (or land) and the buyers have financially committed themselves (for example paid for searches and/or other reasonble fees) I ask that, unless it is mutually agreed to discontinue with the purchase, it be made law that the seller must at least offer the buyer the opportunity to exchange within a certain time period of at least 1 week. If the vendor decides to pull out of the arrangement without offering a financially committed buyer the opportunity to exchange, the vendor automatically becomes liable for any reasonable costs incurred by the buyer."
This means that, if the seller has a timewaster or similar, he can offer them the opportunity to exchange within a week. If the buyer fails to do this, then the seller is free from any obligation or costs, and can walk away from the sale.
Edited by Gallen (BPH) on Monday 24th September 18:32
I have a great idea, why dont they invent something like a pack, that protects buyers, speeds up the process... erm and lets call it HIPS.
That will work wont it.
Yep, the idiots in charge had the chance to either stop this, or at least make it that the buyer does not lose out, as everything they pay for is in the HIPS. Dickwats.
That will work wont it.
Yep, the idiots in charge had the chance to either stop this, or at least make it that the buyer does not lose out, as everything they pay for is in the HIPS. Dickwats.
. 
[quote=Gallen (BPH)]I could almost be persuaded to understand the buyer if he said "look, we've had a better offer we're accepting but seeing as you've paid out, here's your £500 back..." - would have sweetened it.
[/quote]
The wife and I were gazumped 48 hours before we were due to exchange contracts, so I know how you feel. We were "lucky" enough to have been dealing with a seller who at least was prepared to compensate us (3000 quid, which tells you something about how much more they'd been offered for their place by the gazumping buyer.. a development company which already owned the houses to either side, and the large plot of land behind them), and yes, it does help a bit knowing you're at least not being left out of pocket. But it does nothing to compensate you for the time, energy and emotions you've also put into finding your dream home, only to have to start all over again. So yeah, anything to reduce the risk of a genuine exchange falling through would get the thumbs up from me.
[/quote]
The wife and I were gazumped 48 hours before we were due to exchange contracts, so I know how you feel. We were "lucky" enough to have been dealing with a seller who at least was prepared to compensate us (3000 quid, which tells you something about how much more they'd been offered for their place by the gazumping buyer.. a development company which already owned the houses to either side, and the large plot of land behind them), and yes, it does help a bit knowing you're at least not being left out of pocket. But it does nothing to compensate you for the time, energy and emotions you've also put into finding your dream home, only to have to start all over again. So yeah, anything to reduce the risk of a genuine exchange falling through would get the thumbs up from me.
What you have expected to back out if the surveys came back and showed something?
If another house came up in a better area / less money / you lost your job would you expect to be able to pull out as the buyer?
While I sympathise with your position I think it is just a fact of life. You have a point in law when a contract is made and the sale must complete. You can change the law to move the point earlier in the cycle or to minimise the completion of the legal work but it doesn't really help the situation.
Unless you want buyers to be financially committed prior to a survey there will also be a period when the buyer is looking to pull out of the deal
If another house came up in a better area / less money / you lost your job would you expect to be able to pull out as the buyer?
While I sympathise with your position I think it is just a fact of life. You have a point in law when a contract is made and the sale must complete. You can change the law to move the point earlier in the cycle or to minimise the completion of the legal work but it doesn't really help the situation.
Unless you want buyers to be financially committed prior to a survey there will also be a period when the buyer is looking to pull out of the deal
I have had a similar issue but from the buyers side of things.
I was offered my asking price on 23rd June, so I accepted, took the place off the market and then got survey arranged on the place I was buying, having made an offer 2 weeks before.
The "buyer" has lost 2 mortgages and 3 buyers of his place and during this time I put my place back on the market - and have now secured another buyer - 24th September.
Vendor of the place I am buying now wants me to complete this week otherwise she is putting HER place back on the market. Interestingly the same estate agent is acting for selling my place and the place I am buying so they are trying to persuade her not to do this.
Now having to look at an asynchronous completion, i.e. complete on my purchase before selling my place - can just about do it but will take 2 weeks to sort out cashing in investments to do this......
However, new buyer is apparently "ready to go" - but then the first buyer told us he was a first time buyer, then revised to having a builder buy his place, to then being in a chain......Grrrrr
Steve
I was offered my asking price on 23rd June, so I accepted, took the place off the market and then got survey arranged on the place I was buying, having made an offer 2 weeks before.
The "buyer" has lost 2 mortgages and 3 buyers of his place and during this time I put my place back on the market - and have now secured another buyer - 24th September.
Vendor of the place I am buying now wants me to complete this week otherwise she is putting HER place back on the market. Interestingly the same estate agent is acting for selling my place and the place I am buying so they are trying to persuade her not to do this.
Now having to look at an asynchronous completion, i.e. complete on my purchase before selling my place - can just about do it but will take 2 weeks to sort out cashing in investments to do this......
However, new buyer is apparently "ready to go" - but then the first buyer told us he was a first time buyer, then revised to having a builder buy his place, to then being in a chain......Grrrrr
Steve
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