Although a person might make an offer to buy your property, there are no legal remedies available if that person changes their mind, until contracts are exchanged on the property. Agreement to buy a property is initially made prior to searches and checks being carried out on the property and surrounding area; however, while an unsatisfactory search may be a good reason to pull out of the purchase, gazumping and gazundering tend to be more common and underhand ways for buyers and sellers to be disappointed.
As a buyer, if you decide on your property, agreement is made to purchase and then before the exchange of contracts another buyer comes and offers the seller more money it can be very frustrating. Unfortunately there is no legal remedy, despite it often being the case that the buyer will have spent lots of money on solicitor’s fees and searches in this time. Following exchange of contracts on the property, agreement to buy and sell is binding on both parties and if they then fail do so they could be required to either go through with the transaction or pay damages to the other party for their failure to perform the contract.
The system of buying and selling property in England and Wales has received much criticism. It is said to be too costly, too time-consuming and too fallible. There have been calls for an overhaul of the system, but as yet none has been implemented.
If you would like to obtain legal advice on property law, Caven can put you in touch with a local specialist property solicitor free of charge. So, if you have any questions or would like our help in finding local property solicitors please call us on 08001 221 2299 or complete the web-form above.
- Last Updated on 02/03/2010