Waiting 6 months for sale to go through

jim-mcdee

we went sale agreed 6 months ago and contracts signed 4 months ago. The property is second hand, was originally a section 23 build. Now the seller will have a clawback because his 10 years isnt up. the bank are forcing him to sell. where does that leave us? we have already paid deposit and solicitor. if it falls through, i'm sure i get deposit back, but who pays the solicitor?
The sale was approved by the bank (or so I was told). We were waiting for a closing date and this cropped up. The EA told me 'this is something completely unexpected'. I would have thought the tax liability should be cleared up before it got to this stage.
I understand the vendor is arguing with the bank over who pays the tax claw back. The EA called me today and the vendors solicitor is offering a rental agreement until 2014 when the 10 years is up with a contract to buy. I'm obviously not enthusiastic about that. Can the bank force the vendor to sign contracts? Should i sit it out and wait?

D3PO

firstly you haven't signed contracts if you had you would have possession of the property.

if the sale falls through you get your deposit back and pay your own legal costs, its crap but that's how it is. I cant see how the seller is arguing with the bank about who pays any clawback that's clearly the sellers responsibility not the banks.

jim-mcdee

sorry, yes, I have signed, the vendor has not. but can the bank force him to sign the contract?

the_syco

jim-mcdee wrote: »

The EA called me today and the vendors solicitor is offering a rental agreement until 2014 when the 10 years is up with a contract to buy. I'm obviously not enthusiastic about that. Can the bank force the vendor to sign contracts? Should i sit it out and wait?

Aye, and ask how much will they be knocking off the price for the inconvenience? 50k sounds like a nice round sum. Or maybe a bit higher? I'd really wonder if they (the sellers) didn't know this before, and that they were stalling you in the hope that you'd never find out about the clawback?

jim-mcdee wrote: »

sorry, yes, I have signed, the vendor has not. but can the bank force him to sign the contract?

I wouldn't be happy with my solicitor if he didn't find out about the clawback before I signed the contracts! What has your solicitor said about all of this?

jim-mcdee

I think the rules about section 23 are pretty clear, I find it hard to swallow that the vendor and his solicitor did not know about the 10 year rule. And as someone has said, the tax issue is between the vendor and revenue, so why would this stop the contracts being signed if the banks insist the property is sold? It all stinks.

the_syco

I'd wonder what your solicitor has also failed to spot? Have you gotten the property surveyed?

Kosseegan

the_syco wrote: »

I'd wonder what your solicitor has also failed to spot? Have you gotten the property surveyed?

The owners Section 23 is nothing to do with the purchaser's solicitor. the owner doesn't want to sell and have the tax relief clawed back and is using the issue to hold things up. I would negotiate a rent lower than the mortgage repayment would be and move in with a closing next year after the 10 years is up.

jim-mcdee

Right Kosseegan, I think I don't have any other option, unless I forfit my fees and pull out, and then hope something similar comes up.

MammaMurphy

Have you closed as we are in kinda same situtation waiting as yourself?

We are waiting 13 weeks now to actually close, we signed contracts 7 weeks ago and cannot get a closing date as vendor is still waiting loan approval to cover his mortgage so we can close on sale!

jim-mcdee

no, still waiting. waiting for it to fall through at this stage so we can move on the the next one. this is the second purchase we had fall through. bad luck what. irish property purchasing law is a joke.

jim-mcdee

update for anyone interested. after 10 months of waiting, Ulster bank come back and say 'its too cheap, we decided not to sell it'. What can I say. I totally understand the 50% of people leaving jobs here to emigrate. I might be joining them soon.

D3PO

jim-mcdee wrote: »

update for anyone interested. after 10 months of waiting, Ulster bank come back and say 'its too cheap, we decided not to sell it'. What can I say. I totally understand the 50% of people leaving jobs here to emigrate. I might be joining them soon.

Your going to emigrate because a bank didn't like your lowball offer ? Bit extreme TBH.

jim-mcdee

D3PO wrote: »

Your going to emigrate because a bank didn't like your lowball offer ? Bit extreme TBH.

It was the highest offer they got and they accepted the offer. Then 10 months later they come back and say its too low.

D3PO

jim-mcdee wrote: »

It was the highest offer they got and they accepted the offer. Then 10 months later they come back and say its too low.

If it was in Dublin the property would have most likely gone up in value over the past 10 months so I can kinda understand their position, its in their interest to recoup what they can as I assume they are losing after negotiations regarding the clawback the seller will have to pay and probably not have without the bank forgiving some of the debt. They have to minimize their losses to be fair.

No doubt its annoying but that's the problem with the system here, accepted bids aren't legally binding like say for instance in Scotland where they are.

Can understand your frustration but still emigration because of it seems a bit extreme

jim-mcdee

If I were you, when the banks recover, I would apply for a job there. I think you would do very well.

D3PO

jim-mcdee wrote: »

If I were you, when the banks recover, I would apply for a job there. I think you would do very well.

None of them would pay me as much as I get in my current very well paid job but never say never :cool:

TwoShedsJackson

jim-mcdee wrote: »

It was the highest offer they got and they accepted the offer. Then 10 months later they come back and say its too low.

This is the risk you take dealing with a bank - they have no emotional attachment to the property and they're not buying another house so they can take their time and eventually reject your offer - they don't care.

Better chance to avoid this by not going for a house where the seller is reluctant/being forced to sell buy the bank.

jim-mcdee

D3PO wrote: »

None of them would pay me as much as I get in my current very well paid job but never say never :cool:

I thought you would reply with something like that.

jim-mcdee

TwoShedsJackson wrote: »

This is the risk you take dealing with a bank - they have no emotional attachment to the property and they're not buying another house so they can take their time and eventually reject your offer - they don't care.

Better chance to avoid this by not going for a house where the seller is reluctant/being forced to sell buy the bank.

agree 100% which is why I posted.

Lou1984

Everyone buying a house lately seems to be in the situation, Went sale agreed at the start of June, no contracts yet. The Creditors of the bank are due to sign off the house this for it be sold well hopefully they will. Vendors have agreed a plan to pay back their negative equity. Going on now 16 weeks . Stressful to say the least.