When is it too late to withdraw from a purchase?

Hi I was just wondering if somone could help me. I've agreed to buy an apartment, no money has been exchanged yet as I'm getting a 100% mortgage and the solicitor is taking an age to get anything done. I haven't signed anything and I was just wondering am I still entitled to withdraw from the purchase without any repercussions? Thanks in advance

You can withdraw now with no repercussions, but if your solicitor has done some work they might want a fee.

Bronte said:

You can withdraw now with no repercussions, but if your solicitor has done some work they might want a fee.

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might??????????

If little or no work has been done the solicitor might wait until an actual purchase goes through. Or the OP may have negotiated that there will be no fee until an actual purchase happens........ Seems strange to me that a least a booking deposit hasn't been paid?

Even if there is a booking deposit put down there is still no obligation to proceed. The booking deposit is a bit strange, it seems to be just a declaration that the buyer is serious. Neither the buyer or seller are obligated to proceed by it.

hayeser said:

Even if there is a booking deposit put down there is still no obligation to proceed. The booking deposit is a bit strange, it seems to be just a declaration that the buyer is serious. Neither the buyer or seller are obligated to proceed by it.

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I think I've heard it mentioned before that the booking deposit is used to ensure that the EA gets his/her fees.

The booking deposit has never been paid because the solicitor never requested it. I'm getting a homestart 100% mortgage so the booking deposit has to come from the bank. The solicitor was provided as part of the deal by the estate agents and despite my best efforts has not requested the booking deposit so the bank can't give it to him to forward to the estage agency. Does any of this have a bearing on whether I can still withdraw? Thanks for all the replies

You seriously need to educate yourself about the legal process of buying a property.

You are borrowing 100% of the property price - I did not think that any lender was doing that anymore. You are using a solicitor recommended by an Estate Agent - I really dislike the idea of these kind of job lot deals. Far better to have your own arms length solicitor than someone who is being fed work by someone else. You don't understand the process of arranging a mortgage. This is a process that runs hand in hand with the purchase but is an entirely separate process. Its quite likely that the process of you being able to draw down your "booking deposit" section of the 100% mortgage requires some input from you. Its even more likely that the solicitor cannot do this on his own - surely the bank will look for some sort of security from you so that this loan will be repaid by you?

If you have not signed anything ( specifically a contract) and if all arrangements/negotiations etc.,etc have been done on the basis of "Subject to Contract/Contract denied" it is very probable that there is no binding contract in existence and you are very likely free to walk away - but make sure you tell everyone including the EA and Solicitor. Whatever about the EA who gets paid by the Vendor, the Solicitor should have set out the process but more importantly the fees payable - including what you would pay if you pulled out of the transaction.


mf

Its likely that you will be charged a fairly hefty fee by the Solicitor. If you want to but the property, go back and renegotiate a better price. Otherwise walk away.

MF1, thanks for the reply but your assuming I don't know these things. There are more complicated things at work which I didn't mention. The solicitor has been provided and paid for by the EA, but is not on the BOI maintenance panel, therefore BOI cannot deal with him. We have requested countless times that he add his name to the panel but he has failed to do so. The solicitor has to sign a claw back clause to allow the booking deposit to be repayed when the mortgage is drawn down, therefore clearing the bridging part of the mortgage.
Bottom line really is I have paid no money nor have I signed any contracts and I have received very poor service from the solicitor. I strongly suspected that I could walk away at this stage without paying a penny to anyone but thought it was a good idea to ask other peoples advice before I made any moves. In normal circumstances one can walk away after paying the booking deposit and receive a refund as long as its before exchanging contracts, which we haven't done. I really can't see that I'm obliged to proceed with or pay for the services of the solicitor or the EA as I have received no servives.

If I were you get out now, before it starts costing you. You do not owe the EA a cent. He didn't sell the property for you. If he brought the solicitor on board it's his problem. Walk away gracefully before its too late.

Why would you use the solicitor of the estate agent when it is clearly a conflict of interest? To your detriment I might add. Also are you in a very good or state guaranteed job that allows you to get a 100% per cent mortgage? Excuse my ignorance if this is a new way of buying property but if I was the vendor I wouldn't accept there to be no booking deposit. It all sounds very messy.

Yeah I have a good job and yes it is messy but its the conditions of the particular mortgage that I've gotten. Its not the EA's solicitor it is a solicitor provided by the vendor.

Plus the solicitor is paid for so it saves me paying for it.

OP - your post no 7 clearly states that the EA provided the solicitor. In any case it's even worse that the vendor is providing the solicitor and paying his/her fees. How did it come about that you have agreed to purchase this particular property - are you related to the vendor or estate agent?

I don't see how its a paricularly bad thing that I would get free legal fees with the apartment, the outcome will be the same. The vendor-ie the construction company is providing the solicitor with the purchase then the EA passes on this offer to the client- ie me. And to be honest I didn't make this post so people could discuss my job or opinions on solicitors.

If the solicitor is acting for the Construction co and you he can't. Its a conflict of interests which is against the law. You mentioned that your reason for withdrawing was the mortgage offer -- there are plenty of lenders who will adapt a mortgage to your requirements.

Well now it's a bit clearer to me. In any case there is no way the solicitor of the construction company should be acting for you. Have you not read the newspapers in the last month about solicitors in property development companies ? Free legal fees will cost you dearly.