House purchase contract

Discussion in 'Legal' started by Its4john, Feb 9, 2018.

Thread Status:
Not open for further replies.
  1. Its4john

    Its4john UKBF Regular Free Member

    133 9
    Strange thing happened today. I’m currently looking to buy a house and have viewed several. One I liked was at a good price but what the estate agent told me has got alarm bells ringing.

    I was told it was a “corporate” sale which means if my offer is accepted, the house will remain on the market right up until exchange of contacts. This means after spending my dosh on surveys, mortgage fees and legal fees, anyone can suddenly offer a better price.

    Is this legal ?

    I thought that accepting my offer basically formed a contract but obviously not.
    Posted: Feb 9, 2018 By: Its4john Member since: Nov 10, 2017
  2. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    9,901 1,999
    In England that seems to be the case with all property sales only confirmed at exchange of contract
    Posted: Feb 9, 2018 By: Chris Ashdown Member since: Dec 7, 2003
  3. Newchodge

    Newchodge UKBF Big Shot Free Member

    10,989 2,816
    Until you exchange contracts, on any house sale, either party can back out. I don't know what is meant by 'corporate' but I can't see that changes the normal position.
    Posted: Feb 9, 2018 By: Newchodge Member since: Nov 8, 2012
  4. Scalloway

    Scalloway UKBF Legend Free Member

    14,392 3,078
    Posted: Feb 9, 2018 By: Scalloway Member since: Jun 6, 2010
  5. Mark T Jones

    Mark T Jones UKBF Enthusiast Free Member

    2,544 688
    As above

    There is no legal commitment on either side until contracts are exchanged The only difference here is that they will be actively marketing it

    Google gazzumping. It was big in the 80s
    Posted: Feb 9, 2018 By: Mark T Jones Member since: Nov 4, 2015
Thread Status:
Not open for further replies.