What to do if you have had a change of heart about buying a property
If you are in the process of buying a new home it can feel like an eternity between having your offer accepted and moving day. During this time, you might be having a change of heart and wondering what your options are. Read this article to find out more.
Searching for a new home is a deeply emotional journey, filled with hope and aspiration. Each property you look at online sparks a narrative in your mind of how you might use the property, who might have which bedroom, and ideas of family gatherings and summer BBQs. You might even visualise a day in the life at the property, where you will sit for a moment of peace with your morning coffee or where you might enjoy a crisp glass of wine in a particular spot where the last of the day's sunshine can be felt before it sets in the evening.
And, if you have dreamed about a particular property during your online search, it is likely that you have been for an in-person viewing, which, if it is the right one for you, will only serve to increase your dreams of one day calling this property home. You might envision your furniture in the rooms and how you will utilise the space. Which child will have which bedroom, and where will you put the Christmas tree? You've found the home for you, and it's time to make an offer.
After some negotiation, your offer is accepted, and you can begin the legal process to make your dream home a reality.
But after all of the excitement, what if you have a change of heart? It could be buyer's remorse if you have stretched your budget a little further than you might have intended to. Or you may have seen another property that you would like more than the one you are buying. What are your options if you think you are making a mistake?
The first thing to understand is that you are not actually legally bound to buy the property until the point of exchange of contracts. This is a crucial stage in the home buying process where both parties sign and exchange identical contracts, making the transaction legally binding. Until the contracts are exchanged, either party is able to withdraw from the transaction if they wish. So, if you think you no longer want to buy the property, it is possible to pull out, but there will be repercussions.
Disappointment: If you withdraw from the transaction, the parties linked to you via the property chain will be affected. The sellers of the property you are buying will have to inform the homeowner that they are buying from. That homeowner might not be willing to wait for their buyer to sell their home again, so they will put their property back on the market to find a new buyer. Your own buyers might decide that they need to find a new property to buy, so the whole chain will collapse if one party withdraws.
Costs: Any surveys, searches, or legal work will not be transferrable to a new purchase, so you will have to pay for the abortive sale. An abortive sale refers to a sale that does not go through, and you may incur costs such as survey fees, legal fees, and other expenses that you cannot recover.
Time: If you wish to begin an entirely new property purchase, then you are essentially going back to square one. The entire legal process for a property transaction takes, on average, 12-16 weeks. If you manage to retain your buyers but begin to buy a new property, that time period will start again. This could mean that your buyer, and any others below them in the chain, could still have to wait three or four more months before they can move. Delays like this can massively increase the chances of a total chain collapse as parties become unable to wait any longer.
It is crucial to be certain about your purchase before you begin the legal process. However, if you find yourself in a position where the purchase is simply untenable for you, it's important to understand the potential costs and disappointment. There will be a financial impact, and the parties linked to you via the property chain will be affected. But remember, it is possible to withdraw as long as you have not yet exchanged contracts.
If you are in the process of buying a property and have questions or concerns about the process, remember that you're not alone. Our team of property experts is here to help and guide you through this journey. Don't hesitate to get in touch.