# Mortgage advice, exchange of contracts problems, charges



## possul (Nov 14, 2008)

il try and be brief bit here goes.
I've recently attempted to purchase my first house with my GF. Was going quite well, paperwork done, deposit and fees transfered and exchanged contracts. Days after Exchange of contracts I get a phone call saying all the paperwork has not been finished and that more surveys needed to be. So we shell out more money for surveys. Comes back with faulty concrete floors. Get builder round. Not fault, due to poor leveling of brick were a wall had been removed. Send report off, they then say they want quotes for work on floors.....
Was getting pretty p####d off at this point, causing more problems financially, and between my girlfriend. We have never argued until now!
Were we are now, we basically got told it got put back on the market and we had to either put another offer on it or choose another. (they have fully refunded all fees and deposit) We have chosen another but they now want all the fees for checks on area which we have already paid. As you may imagine in not happy at all and we did want to walk away from this company but we didn't want to loose the chance of not getting another mortgage somwhere else so we are having to stick with it.
My questions are we do we stand on the contracts part? Surely we are the owners as the contracts are legally binding from that point.
Can I complain about paying all these charges again? Same area we will be moving to.
Can I get some sort of compensation for the hassle and the loss of the house we originally wanted? if this were a private sale and this was a seller pulling out then i have the right to sue him for the purchase price (was a repossesion) A written apology would be nice tbh as they have caused nothing but stress for us. only one person has said it was there fault of the record of course 
Sorry its so long, there is so much more info but i think its all there.
Anyone been in similar situations?
Any advice will be a great help

Thanks
Adam


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## GJH0702 (Oct 21, 2011)

Part of your solicitors legal duty is to ensure that you have a valid offer of advance from your mortgage provider and that any 'conditions' have been met prior to exchange.
If you have exchanged contracts you are legally bound to pay balance on completion and if you don't interest will be charged on a daily basis.
Suggest speak to Solicitor ASAP and ask him to 'resolve' 
Good luck


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## bigslippy (Sep 19, 2010)

Hi Adam , who called you and what paperwork hadn't been completed?


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## lofty (Jun 19, 2007)

If you have exchanged contracts then you have to buy it and the seller has to sell it to you, its a bit late in the day to start doing extra surveys, this should have all been sorted before exchange, sounds like a bit of a ****up by your solicitor imo.


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## possul (Nov 14, 2008)

We had exchanged contracts without all the paperwork being completed. It was only after the exchange they rang me saying that paperwork had to be finished which was another survey for inspection of the concrete floors. some suplhate attack crap which we couldn't find any faults. Impressive as they managed to find these faults with the carpets down. I argued this and there exacc reply was, it is what the area is known for


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## possul (Nov 14, 2008)

Solicitors have told me that in the easiest way for me to explain is the contract has been ripped up, can't explain it any other way. It was them who told us to find another house which we have now. I just don't think it's fair I have to go spending ll the money on checks for the area, me, bleeding coal mining checks etc etc


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## Ninja59 (Feb 17, 2009)

turn it on it's head this survey could of saved you a lot of heartache, rather than the £££ granted wasted expenditure but it could of cost you a lot more in the future if it had not been picked up

in relation to the contracts you only gain an equitable interest in the property not full legal ownership on exchange, under registered land which a lot is these days well has to be for freehold ownership the sale is only complete until registration of the buyer at the land registry unlike unregistered land.


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## bigslippy (Sep 19, 2010)

Sorry , I'm trying to put meat on the bones , by any chance is it the lender who has asked to have further inspection of the floor and basically asked for quotes to repair / fix the floor for retention purposes?


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## bigslippy (Sep 19, 2010)

Ninja59 said:


> turn it on it's head this survey could of saved you a lot of heartache, rather than the £££...
> 
> in relation to the contracts you only gain an equitable interest in the property not full legal ownership on exchange.


+1 :thumb:


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## possul (Nov 14, 2008)

Yeah spot on bigslippy. We couldn't actually find a fault though so we kept going round in circles.
Thanks guys


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## Ninja59 (Feb 17, 2009)

bigslippy said:


> Sorry , I'm trying to put meat on the bones , by any chance is it the lender who has asked to have further inspection of the floor and basically asked for quotes to repair / fix the floor for retention purposes?


it could of been the one of the lenders conditions that because of the area that it needs an XXX survey to have a valid legal "charge" (a form of which is a mortgage), i am only speculating but it would point to this yes.

if you complete a sale under registered land basically beyond you the lender or charge gets registered in the deeds by notice on the charges register by date of registration of the buyer (hence the reason you only gained an equitable interest in the property). Also, aside note since 2008 registered land now features the percentages owned as equitable parties making life easier!

just be glad you are not dealing with easements under prescription... for any legal bods just mention the Prescription Act/Lost Modern Grant/1189...

welcome to the English Land Law system...at times utter nonsense.

i know the money wasting exercise is no fun, but in the long run you will hopefully come across a better property that will pass inspection.


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## possul (Nov 14, 2008)

So in a way ninja I'm better off in a sense?


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## Ninja59 (Feb 17, 2009)

possul said:


> So in a way ninja I'm better off in a sense?


bluntly you got lucky, i would say this extra survey

+ves
a) tore up your binding contract 
b) saved you from buying a house with problems for resolution ( i do not know anything about building just do land law hence my understanding).

-ves
a) you burnt up some money you will never get back.

analogy: -

let me put in car terms you would not want to buy a lemon of a car would you for instance a supercar...?

i assume not in 90% of cases...so this "survey" is only like that really okay values aside...they found a problem were notified etc.

oh and in your point about them being in the same area if you go two streets from my house there is former land of which had some pretty nasty deposits in from years ago, my house is not affected but the houses that were dropped in value significantly even same areas houses have different problems.


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## possul (Nov 14, 2008)

Thanks for explaining it, just wish they had made me aware of this before, if I missed it then I missed it but if it's that important I would of expected them to perk u about it, just proceed with the new home now! Happier times


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## Ninja59 (Feb 17, 2009)

possul said:


> Thanks for explaining it, just wish they had made me aware of this before, if I missed it then I missed it but if it's that important I would of expected them to perk u about it, just proceed with the new home now! Happier times


well hopefully if nothing else you can learn from this and read contracts more thoroughly :lol: yes i am a sad act and do read the T & C's like  i doubt you want to learn about deed creation :lol:


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## sirkuk (Mar 5, 2012)

Until all conditions are met within your contract, it doesn't entitle you to the property. To be fair, it sounds like you've been messed about and weren't told about what needed to be done soon enough. 

Honestly, don't let it get you down or between you and your GF. I went through the headache of buying a house last year. It seems it's rarely plain sailing. I had 6 months of hell trying to sort my house purchase. 

Sent from my GT-I9000 using Tapatalk


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## bigslippy (Sep 19, 2010)

possul said:


> Thanks for explaining it, just wish they had made me aware of this before, if I missed it then I missed it but if it's that important I would of expected them to perk u about it, just proceed with the new home now! Happier times


You been dealing with a mortgage broker or lender directly?


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## sirkuk (Mar 5, 2012)

possul said:


> So in a way ninja I'm better off in a sense?


If the survey flagged up issues, yes.

Sent from my GT-I9000 using Tapatalk


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## possul (Nov 14, 2008)

bigslippy said:


> You been dealing with a mortgage broker or lender directly?


Originally a broker but ended up doing all the chasing my self with solicitor. Never spoken to the lendor


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## possul (Nov 14, 2008)

Ninja59 said:


> well hopefully if nothing else you can learn from this and read contracts more thoroughly :lol: yes i am a sad act and do read the T & C's like  i doubt you want to learn about deed creation :lol:


Going straight over my head:lol:! Thanks again :thumb:


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## bigslippy (Sep 19, 2010)

possul said:


> Originally a broker but ended up doing all the chasing my self with solicitor. Never spoken to the lendor


That's poor , it wouldn't have happened with me .I always ask surveyors I have built up a working relationship with about properties that my clients are looking at, just to get a heads up . Underline and move onto new property


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## Ninja59 (Feb 17, 2009)

bigslippy said:


> That's poor , it wouldn't have happened with me .I always ask surveyors I have built up a working relationship with about properties that my clients are looking at, just to get a heads up . Underline and move onto new property


yeah but you live in scotland where if you put an offer in your stuffed not like us English we leave it till contracts:lol:


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## possul (Nov 14, 2008)

What is it you do?
It has been a ball ache tbh, I just want to move out and settle down, hopefully this goes well and stress free


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## bigslippy (Sep 19, 2010)

Ninja59 said:


> yeah but you live in scotland where if you put an offer in your stuffed not like us English we leave it till contracts:lol:


Offer in isn't a stuffing , concluded missives and you're snookered


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## Ninja59 (Feb 17, 2009)

bigslippy said:


> Offer in isn't a stuffing , concluded missives and you're snookered


:lol:


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## bigslippy (Sep 19, 2010)

Adam , I'm a self employed whole of market mortgage broker , I'm not after your business , however if you want a second opinion for peace of mind I don't mind helping out a fellow detailing enthusiast and you can pm me if required:thumb:


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## Ninja59 (Feb 17, 2009)

bigslippy said:


> Adam , I'm a self employed whole of market mortgage broker , I'm not after your business , however if you want a second opinion for peace of mind I don't mind helping out a fellow detailing enthusiast and you can pm me if required:thumb:


and that is why DW is a family :lol:


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## bigslippy (Sep 19, 2010)

Ninja59 said:


> and that is why DW is a family :lol:


:thumb: just don't wander off into English Law:lol:


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## Ninja59 (Feb 17, 2009)

bigslippy said:


> :thumb: just don't wander off into Scottish Law:lol:


phew thought someone was overrunning england then :lol:


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## possul (Nov 14, 2008)

Thank you both. If I run into any trouble il drop a pm


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## Ninja59 (Feb 17, 2009)

your welcome.


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## bigslippy (Sep 19, 2010)

Ninja59 said:


> your welcome.


What he said :thumb:


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## PaulN (Jan 17, 2008)

Always best to pay more and get the Buyers Surey rather than just the valuation survey. Must have been bad for the Mortgage company not to agree the mortgage.

Your solicitors sound to be in the wrong as the mortgage and deposit should have been in place before you exchange.

Cheers

PaulN


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