My sister's boyfriend has just sold his house to a developer. He says he doesn't know when he'll get the money as it's up to the buyer, and also he can still pull out. This can't be true, can it? (Isn't in Scotland)
2006-07-26 23:53:19 · 9 answers · asked by Patchouli Pammy 7 in Business & Finance ➔ Renting & Real Estate
It sounds as though the house is 'Sold Subject to Contract'.
This means that an offer has been made on the house and the buyer has shown proof that he has been accepted for a mortgage or can afford the property. Your sister's boyfriend has then accepted this offer.
The money doesn't change hands until the contracts have been exchanged and the buyer can still pull out up untill this stage.
Your sister's boyfriend can always pull out of the deal aswell if he feels that the property developer is taking too long and won't give him a realistic date for exchanging the contracts. Prior to exchanging, conveyancing solicitors have to check the deeds of the property and any lenders involved will want a survey of the property carried out to check that it is worth the asking price. This can take a few weeks.
I hope this helps.
2006-07-27 00:02:43 · answer #1 · answered by Anonymous · 3⤊ 0⤋
When you buy a house, this happens:
1) Buyer comes forward, offers an amount. The seller/buyer agree on the amount
2) All the paperwork is done: buyer gets money together (mortgage), surveyor checks out the property, solicitor asks questions they have, "searches" are done (e.g. checking the property isn't about to have a motorway go through the garden), checks made to ensure the seller has the right to sell the property
The above can take 5-6 weeks quite often.
3) When both sides are ready and still in agreement, a date is set for "EXCHANGE". At this point the ACTUAL date is set for when the money will change hands. In the UK THIS is the point at which you can't pull out.
4) Final stage is the COMPLETION - this is the actual date the actual money changes hands and the keys handed over.
Generally speaking it tends to be a week between exchange and completion.
2006-07-27 00:45:16 · answer #2 · answered by cornwall_seo 2 · 0⤊ 0⤋
Developers buy property to make a profit. Part of the equation means getting a good deal from the seller. If exchange has not taken place the best advice might be to find another buyer that will pay more. Don't let the buyer mess you about.
2006-07-27 21:12:40 · answer #3 · answered by Frank M 3 · 0⤊ 0⤋
They buyer and the seller negotiate a completion date, upon completion all the money gets paid to the seller. To be able to exchange contracts both parties have got to agree a completion date, exchange of contracts makes it legally binding and if the buyer pulls out after this point the seller is entitled to sue. the buyer can pull out at any point up untill exchange of contracts. but the seller does have a say as to when he wants it to complete.
2006-07-27 00:02:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋
When you exchange contracts between seller & buyer, you fix the date for completion. This is legally-binding, and the money legally has to be paid on the date of completion. If the money does not reach your account on that day, you can sue the buyer.
2006-07-26 23:58:42 · answer #5 · answered by grpr1964 4 · 0⤊ 0⤋
As soon as your seller signs the property to another owner the moneys must be pain simultaneously this would be in the contract and if the monies are not paid the sale is not valid.
2006-07-27 00:01:57 · answer #6 · answered by David P 1 · 0⤊ 0⤋
The money is exchanged on completion, i.e when the keys are handed over. It is possible to pull out withoput penalty any time upto the survey being completed and with penalty any time up contract exchange.
2006-07-26 23:59:25 · answer #7 · answered by break 5 · 0⤊ 0⤋
Rubbish, when you go into a shop, when do you pay! When you buy a house you enter into a contract!
2006-07-26 23:58:10 · answer #8 · answered by i_b_moog 3 · 0⤊ 0⤋
Thats bullshit
2006-07-26 23:55:50 · answer #9 · answered by Anonymous · 0⤊ 0⤋