Vendor issue

Hi all, hope someone can shed some light on this for me.

Me and my patner back in August agreed to buy a home and we put an offer in. It was accepted late September, told by my solicitor to get everything ready i.e house ins and life policy terms of Mortgage as we would be ready to go mid November. The provisnal contracts came over a few issues nothing major sent them back. The vendors solicitor goes on a missing list, finaly got in contact with him second week in december to say that everything was fine. still no contracts arrived, the day before we broke up for christmas my solicitor rings me to say that one of the vendors doesn't want to sell (Personal issue).

I already activated my life policy and home ins when we were told that everything was ok as terms before mortgage drawdown.The cheque is gone back bank. Can i do anything to get my money back or for time wasting on the vendors part.

We are now living back home with our parents as we sold our other property on the basis that we had somewhere to move in kind of straight away.

I would assume that without any contracts, you have no comeback. The person who could best advise you would be your solicitor.

Why did you get house insurance and life policy at such an early stage? There would have been plenty of time to get those organised after you signed the binding contracts.

We were told to by our solicitor as we were passing over all the monies at the same time. And the bank wanted it all in place before issuing the cheque to us.

Your solicitor gave you bad advise.

Did you draw the mortgage down before you signed contracts?

There is a minimum of 4-6 weeks between contract signing and drawing down of mortgage, plenty of time to get life assurance and house insurance.

We needed to draw it down as it was maturing and we would of having to re-apply again which we didn't want to do as to not delay moving.

So there is nothing i can do in regards to the Vendors! Even tho they accepted my offer and pull out at the last minute leaving me in house limbo.(",)

No comeback against the vendors, I would imagine that the solicitor said (or meant) to line everything up with a view to closing in mid-November.

You certainly shouldn't have activated the life policy or insurance until the deal closed.

(sorry, i see why you did, and drew down...)

Bo80 said:

We needed to draw it down as it was maturing and we would of having to re-apply again which we didn't want to do as to not delay moving.

Click to expand...

You would have had to re-apply or have the mortgage re-sactioned?

I would be surprised if you had to re-apply, re-sactioning just involves submitted up to date bank statements and payslips.

"Your solicitor gave you bad advise....There is a minimum of 4-6 weeks between contract signing and drawing down of mortgage, plenty of time to get life assurance and house insurance. "

I beg to differ.

The biggest single problem that arises when trying to draw down mortgage funds is life cover being available with the policy physically issued, assigned and delivered to the lender. There is a very real prospect of a borrower being called for a medical which will hold the whole process up for weeks.

On the face of the facts presented, the solicitor was prudent ( perhaps over cautious?) in making sure everything was set up and ready to go. The fact that the vendors pulled out at the last possible moment is morally unacceptable but, legally, always a possibility.


The gap between contract and closing gets ever tighter as increasingly , once a deal is done ( be it verbal or written) both parties want to complete a.s.a.p. Signing the contracts is a no - no until loan approval issues and to guard against big problems arising, both sides will have pretty much investigated and nailed down all issues prior to contracts.

mf

Thanks Mf. That clears up a lot. Back to house hunting again i suppose. They tell me the Vendors are splitting up and one doesn't want to sell, but the other can't afford to keep so it could take months to settle. Just my luck.