Unconditional sale agreed

[fjweaver]

our boat is in a South Coast Used boat sale & last weekend had an unconditional offer which we accepted.
I've just had a call to say that the purchaser now wants a survey. I don't know why he didn't want one before but I guess it's the insurance company that requires it now.
So now they want a conditional sale based on the survey - which means that the buyer could now pull out and get his deposit back.
So now we've lost potential buyers during the last busy week of the season & might end up having to pay storage till next year when it picks up again.
Has anyone else had similar experiences & what did you do about it?
thanks
Frank

 

[david_e]

1 what paperwork/documentation changed hands
2 how much money was paid as deposit
3 did they pay the market price
4 what was said/implied at the time and in what context
5 how many calls have you had since

are you an rya member?

 

[fjweaver]

As far as I know they signed an unconditinal contract & put down 10% deposit. They knocked off £450 of the asking price which was pretty much what we expected.
We were told that an unconditional offer meant that if they pulled out they would lose their deposit.
we've made a few calls to the broker to make sure the buyer had our phone number (so that I could arrange a handover of bits, get the boom off etc.) - but no contact from the buyer.
I'm a bit cheesed off as I was going down to Moody's (from London) last weekend to sit on the boat and discuss it with anyone having a look at it, but as soon as we got the offer stayed at home.

 

[david_e]

sounds like the solution to your problem is to get the broker to nurse them along in the sale, after all that is what he is paid to do. normal broker practice is to take a deposit subject to survey so unless they are doing something unusual it is likely that is what they have done. they will have their own standard terms etc and no doubt be part of a trade association with obligations to buyers and a reputation to keep intact. if the buyer is going ahead with the survey then they are still keen and if your boat is sound(ish) then it all should go through eventually and if this are the only genuine buyer on the scene is best to try and keep them by being reasonable.

critical point is where is the money now?

afraid that being cheesed off is all part of the buying and selling process, call it a normal state. even if you had sat on the boat and reassured them or any others about it's brilliant condition etc, any buyer would still be well advised to get a survey done.

 

[FlyingSpud]

It would be odd to sign an unconditional contract, most brokers standard forms seem to allow for a survey, however, if it was, then an unconditional contract is just that. Ask to see the signed contract and read the terms. Chances are you can insist they buy as seen or, if they want to pull out, claim the deposit.
If they did not sign a contract, then I would be asking the Broker why not? The broker's job is to work for you and in certain cases you may be able to look to them for recompense if they have not acted properly.

 

[david_e]

Re: Broker

To add to your point about the broker, I wonder what the situation is with the broker/vendor agreement. Is part of the deposit likely to be claimed by the broker as his fee, as in theory, a sale has been made and then a fee is due. If the broker has the money then they hold the cards.

 

[Chris_Stannard]

Under the sale of goods act if the buyer agreed to an unconditional sale and paid a deposit, you have an enforceable contract. He cannot now impose conditions and you cannot back out of the sale. This is becasue there is consideration, the deposit, which makes the contract binding. If either party now seeks to alter the contract the other can sue for specific performance, that means you could sue him in court to pay up and take the boat.

However I have to say that you will have to have evidence that the sale was unconditional. The broker would have to be prepared to state that the sale was agreed and the deposit paid on that basis. If that is the case you are in a very strong position and should not be deterred by his current actions.

Chris Stannard

 

[david_e]

you are quite correct, but what we are missing here is more detail on the broker's bit. it would appear that jfweaver has been told that the sale is unconditional and a deposit has been paid. if this is case then it is cut & dried. however, brokers (not all of them) have a habit of telling people what suits them at the time, normally purchasers, but not forgetting vendors. i suspect that one thing has been said to one party and another to the other, otherwise things would stack up as normal. because of this jfw should concentrate on getting the sale complete as mentioned above (imho) although i can see why enforcing the current status quo is attractive.

perhaps jfw could update us on the situation as it quite interesting.

 

[FlyingSpud]

Re: Broker

Good point, and remember it is 8% plus Vat so the whole deposit has really gone to the agents, In theory the buyer can sue for additional loss, but hardly worth it, given the cost of instructing M'learned friends.
But this all assumes that the agents have done their job properly. If they said it was an unconditional sale, then either it was, or it f it was not the agents were presumably negligent
. I agree with funbouy , I think it would be interesting to hear what the position was.