House contracts/Moving etc.

Caporegime
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Dormanstown.
Serious thread.

So, my Mam's had the house up as of December 2010, as she's always toyed around with the idea of moving into a Semi-Detached house, she's always aspired to get a bigger house, by herself, before she reaches 45, or else she'll have an issue with the Mortgage.

About 20 minute walk, there's an estate which is council owned, which is being knocked down, and as thus there's an elderly woman (Around 50ish, perhaps older, I never paid attention).

This woman, in essence seems to be a gold digger, and she managed to persuade the council to buy our house and my mam accepted the offer (To my dismay, as I don't want to move).

My mam quickly went searching for a house, and found one close by (Around 5 minutes walk), it was a semi-detached house, had a conservatory and green house, despite the victorian like decor, my mam rushed into making an offer, which was accepted.

The woman brings her son to inspect the house, see where they can move stuff etc, and we do the same to the house we planned to move into.

All seemed to be going well, my mam started packing up this house, while the elderly woman requested checks done on our house to make sure it was "suitable" (A desperate plea for her to try and find ANYTHING wrong with the house so she could get more money imo, this house is much better than the council estate crap she lived in, the estate was like a total cess pit, my dad used to live there, and I knew the scum that occupy the estate.)

Anyway, there's nothing wrong with our house as via the checks, which my mam paid out for.

My mam said they'd both signed their contracts yesterday and the completion date for moving was Friday (Though actual clarity has never been my mams strong point)

To clarify at this point ;
Mam's paid out for checks done on our house, ordered new stuff for the new house, started packing, and both parties have signed their contracts.

However, as of today, my mam's received a text off the woman stating "Due to personal reasons, I won't be buying your house"

My mam's now furious, and I'm getting the brunt of it (But that's another matter)

How is it possible, after the contracts have been signed, with the completion date to be Friday for it to fall through THREE DAYS BEFORE THE MOVE? Also, it's not her buying it, it's the council buying it for her, to which I now hope drop her in a home. In my opinion, the house we're in at present is a lot better than the new one, my mam has done out EVERY room.

Bearing in mind, I don't want to move.
Also, I'm assuming she's able to claim expenses paid off the elderly woman?.

Cheers.
 
Your mother will have a conveyancer dealing with the sale, take legal advice from the professional involved not a bunch of monkeys on an internet forum.
 
Your mother will have a conveyancer dealing with the sale, take legal advice from the professional involved not a bunch of monkeys on an internet forum.

She's speaking to her solicitor tomorrow. The council, who are buying the house for the woman, don't have a clue what's happened, nor do the solicitors.

Bizarre situation to be in.
 
I thought that once you had exhanged contracts you were legally obliged to do the deal?
I may be wrong, I know a lot of the time now people exchange and complete the same day.
I always wondered what happened if you had exchanged and something happened such as a job loss, would a mortgage company be able to back out?
 
the woman has nothing to do with it, the contract is between your mum and the council so since you have exchanged then the move should happen
your mum should get her solicitor onto the councils tomorrow
 
I thought that once you had exhanged contracts you were legally obliged to do the deal?
I may be wrong, I know a lot of the time now people exchange and complete the same day.
I always wondered what happened if you had exchanged and something happened such as a job loss, would a mortgage company be able to back out?

i was always of the understanding that you could technically back out until the keys are in your hand
 
Doesnt matter then, its not up to her to back out, council have to buy your house and put someone in it.
Woman can go rottttttttt.
Also no idea why a seller is getting checks done and approved, the buyer has to do the same checks anyway at their expense.
 
i was always of the understanding that you could technically back out until the keys are in your hand

I think if your accepting the loss of your deposit then yes. The deposit is the sellers "insurance" to cover costs they may incur on the aborted sale.

I think the whole point of the exchange is that its become a legally binding agreement and hence you can proceed to do the things you need to do in order to actually make the sale and move out.

I have never paid a 10% deposit though, just passed on by agreement the deposit from the purchaser, someone could end up seriously out of pocket.

Check the link I posted, I wasnt aware that the 10% can be topped up afterwards if you didnt get 10% and a party defaulted.
 
There's a thread on moneysavingexpert about this where contracts were signed then one party wanted to back out. Basically the guy went to court and within three months forced the sale through and got compensation from the other party.

This situation happens very rarely but the cards are stacked in your mum's favour.
 
I think its reasonably common someone tries to pull out of a purchase, a different "better" house comes up, or they realise they dont want to move or something.

I think its very very rare for a seller to pull out after exchange since as post above states the courts can force the sale to happen anyway if the purchaser really really wants to push it to happen.
 
After the missives are concluded there is a legal understanding that the sale is going ahead, if someone pulls out the solicitor should have had clauses in covering what the penalties would be. However, surely the missives were signed by the council as they were the ones purchasing the property?
 
I'm a bit lost here, how would this woman be able to persuade the council to buy your house?

Edit: Or is it because the council is bulldozing the place that they are offering to relocate all the council tenants to other properties?
 
Your conveyancer will have provided your mother with a letter or statement explaining the penalties for breach of contract along with her copy of the contract to be signed.

Just looking through her paperwork will tell you how much compensation she is likely to receive, it is usually the 10% deposit and you have the option to sue the defaulting party for breach of contract.

If the council are buying it, they'll probably find it less hassle to complete and stick a different tenant in anyway.
 
And in fantastic style ;
My mother won't speak to the woman.
Has left it at "We'll get back to you" from the solicitors, and that's it.

Logic? She has none.
 
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