What to do when your house purchase falls through
If a residential property transaction falls through, despite the sink of funds into searches, surveys, mortgage fees and legal expenses - is there still recourse for recovery? Slim possibilities remain to regain these costs.
Why do transactions fall through?
While the excitement of purchasing a new home can be overwhelming, there are several potential moments in which an agreement may fall through.
These issues often arise due to difficulty within long chains where all transactions depend on one another; changes of heart by sellers or their circumstances; legal obstructions such as access problems, neglecting covenants and/or planning regulations; buyers not able to acquire mortgage financing or when survey reports reveal any unforeseen defects.
With so many aspects during the process that need attention - it is no wonder why some purchases prove unsuccessful.
How common is it?
The national average is of 25-29% successful transactions this year.
Is the other party liable?
When buying or selling a property in England and Wales, no one is legally bound until contracts are exchanged. This means that the seller can't be penalised for ending the transaction prematurely - giving you peace of mind throughout the process.
Can I protect myself?
Protect yourself from the financial strain of a failed residential property purchase with Failed Residential Transaction Insurance.
From legal fees to mortgage and survey costs, your policy may provide up to £1,500 of coverage for abortive expenses – just remember to read the fine print first.
Be sure that you understand which circumstances are included in or excluded from your policy, such as whether it covers all or some associated costs. It may cover:
The seller accepting an alternative offer on the property after previously accepting yours
An adverse legal search
A survey which highlights the need for significant remedial work (at least 10% of the value of the property offered)
The mortgage lender’s valuation being less than the sum offered to buy the property
An employer no longer relocating, so the house move is no longer appropriate
Involuntary redundancy
Death, unforeseen illness or injury