Buying a house is one of the most important decisions you will ever make in your life. It takes months of research, attending viewings and dealing with the legalities of buying property in the UK.
However, as a potential house buyer, you should know that you are not legally bound to the purchase until contracts have been exchanged. So, what happens if you have a change of heart about the property you are buying? Can you still pull out of the sale? In this blog, we will provide you with all the information you need to know about withdrawing from a UK property purchase.
Compare Estate agent fees here. We analyse the performance of every active estate agent in the UK and using basic information about your home, we provide you with a list of agents that cover your postcode and how they perform against each other.
Can I Pull Out of a Property Purchase?
When you make an offer on a house in the UK, it is not legally binding until the exchange of contracts. This means that even if you have agreed on a price with the seller, you can still legally withdraw your offer at any point without penalty. However, it is important to note that if you do pull out of the purchase, you may potentially lose any money you have already spent on legal or administrative fees towards the purchase of the property.
Can I withdraw my offer on a house?
If your offer has been accepted, you will still be able to withdraw it, as long as contracts have not been exchanged. In the UK, an accepted offer is not legally binding, it’s just a verbal agreement between the buyer and seller.
It’s fairly easy to withdraw an offer you’ve made on a property, either before or after it has been accepted.
simply:
- Contact the estate agent or your conveyancing solicitor.
- They will inform the buyer that you’ve changed your mind about the purchase, and you’re withdrawing your offer.
- Even if the offer has been accepted, you can still pull out of the house sale as long as the contract has not been exchanged.
Compare estate agent fees today and make your home buying or selling a simple and easy process.
What About After Exchange Of contracts?
If you are withdrawing from the purchase after the exchange of contracts, the situation becomes more complicated as you are then legally bound to the terms of the contract. One option is to choose to break the contract by forfeiting the deposit, which is usually 10% of the property price. However, this should only be done after seeking legal advice and understanding the financial implications of this choice.
If you find yourself in a situation where you wish to withdraw from the purchase after you have exchanged contracts, it is important to inform your solicitor immediately. Your solicitor will then notify the seller and their solicitor to confirm that you wish to withdraw from the agreement. After your notification, the seller may have the option to legally pursue you for breach of contract. This is why it is essential that you act quickly and seek legal advice to limit your potential liability to the seller.
If the reason for your withdrawal is due to a stipulation in the contract that wasn’t cleared up before the exchange, you may be able to withdraw from the purchase without breaching the contract. For example, if a survey shows a problem with the property that wasn’t declared, you may be able to withdraw from the purchase without losing your deposit.
How to pull out of a house purchase
Pulling out of a house purchase before exchange involves the following steps:
- Contact your solicitor or conveyancer and tell them you’d like to pull out.
- They will inform the other parties involved
- They will negotiate with the seller on your behalf if there are any fees to discuss.
- You may still be required to pay your solicitor if they have carried out work or incurred costs already.
It’s a fairly straightforward process to be free of the sale, but it’s a different story if you wait until after contracts are exchanged.
Pulling out of a house purchase after exchange
You’ll be breaching the terms of the contract if you do not wish to proceed with the sale after exchange has happened.
- If you are the buyer, you can expect a “Notice to Complete” to be issued.
- This gives 10 days for you to complete the sale, and you’ll owe the seller daily interest on the agreed sale price.
- Even if the reason you’re pulling out is out of your control, you’ll still be breaking the terms and your seller will be entitled to end the contract, and keep the deposit you have paid (usually 10% of the sale price).
- The seller can then put the house back on the market, claim damages or financial loss for any depreciation in value, or ask you to pay the difference in value due to the financial loss you may have caused them.
Finally
In conclusion, as a potential house buyer, you are not legally bound to a property purchase until contracts have been exchanged. This means that you can withdraw from the purchase at any point before that without penalty. However, if you wish to withdraw from the purchase after exchanging contracts, you may face legal and financial consequences. It is essential to seek legal advice as soon as possible to limit any potential liability and financial loss. Remember, buying a house is a significant decision, so it is essential to take your time, consider all your options before committing to the purchase.
Which Estate Agent?
Compare-agents.com analyses the performance of every active estate agent in the UK. Using basic information about your home, we provide you with a list of agents that cover your postcode and how they perform against each other. All you have to do is enter a few details about your property, and we will show you the performance of the estate agents in your area and those online. Let us help you choose which estate agent is the best for you. Compare estate agents fees today.
