Vendors increasingly shifting goalposts at last minute - warning

Vendors are increasingly shifting the goalposts on a sale at the final moment, a buying agent has warned.

The strong sellers’ market of the last few years has resulted in a legacy of vendors thinking they hold all the cards, Stacks Property Search claims.

The agent warned there’s an increasing trend towards vendors changing the goalposts at the last moment – either extending the exchange date, or pulling out of the sale altogether. 

Bill Spreckley of Stacks Property Search said doing this at a stage when the purchaser has paid for surveys and legal work, and when they’re all ready to exchange, can be a devastating blow emotionally, financially, and in practical terms.

He said: “We’re encountering numerous situations of this kind. Often it’s because the vendor hasn’t found something to buy, or because they’ve had second thoughts about moving into a rented property while they search. 

“They think there’s an endless supply of buyers. That may have been the case in 2021 and 2022 when vendors were firmly in control, but things have certainly changed.

“For the purchaser who has invested heavily, both financially and emotionally in a purchase, it’s devastating when a vendor changes their mind at the last minute. The vendor pays very little up front – maybe a few legal costs, but the purchaser has a great deal more to lose.”

Nick Wooldridge of Stacks Property Search added that buyers should equip themselves with as much information about the vendor as possible.

He said: “Press the agents at an early stage and assess the vendor’s situation.

“If they’ve already found something to buy and their own purchase is progressing, then you should both be on the same page in terms of the deal progressing. 

“But you should be cautious if their next property plan is unclear. That’s not to say it’s necessarily a reason to walk away, but you should consider steps to protect yourself.”
 
Spreckley added: “There are an increasing variety of devices that can help a buyer protect themselves such as a ‘reservation guarantee’, a legal agreement between the buyer and the seller that provides both parties with financial protection against either party pulling out. Another option for the buyer is to take out buyers’ insurance that will pay buyer’s costs such as surveys and legal fees if the vendor pulls out.
 
“Ways of protecting buyers and sellers are becoming more widespread, for instance Gazeal is a provider of digital reservation agreements that protects buyers from gazumping, and sellers from gazundering. If you think you have reason to be nervous about a sale going through, it is certainly worth looking at the various options open to you that will protect you financially.”