What occurs when a property purchase falls through?

About 1 in 4 property sales fall through each year. It’s frustrating, but not always the end. Here's why it happens, what both buyers and sellers can do, and how to reduce the impact.

Why Sales Fall Through

1. Mortgage Valuation Issues
– If a lender values the property lower than the agreed price, they won’t lend the full amount
– Buyers can renegotiate, appeal, or try another lender
– Sellers should get multiple valuations beforehand to avoid this

2. Mortgage Offer Expiry
– Mortgage offers usually last 6 months
– Buyers should avoid major financial changes before completion
– Sellers should confirm the buyer’s mortgage is in place

3. Chain Breaks
– A chain is when multiple transactions rely on each other
– If one sale falls through, it can affect others
– Keep in contact with solicitors and agents to stay on top of progress

4. Survey Issues
– Surveys may uncover problems (e.g. damp, structural damage)
– Buyers may renegotiate or walk away
– Sellers can get a survey before listing to avoid surprises

5. Gazumping
– Seller accepts a higher offer after agreeing to yours
– Buyers can request the property be taken off the market (seller may decline)
– Buyers can try to match the higher offer

Pulling Out Before Exchange

Until contracts are exchanged, either party can legally walk away.

If the Seller Pulls Out

– Find out why — It might be a delay in their own purchase
– Talk to the estate agent — Stay in regular contact to keep things moving
– Decide your next step — Reassess the property and decide if it’s worth waiting for

If the Buyer Pulls Out

– Understand the reason — A bad survey or mortgage issues might be negotiable
– Renegotiate — Lower the price or fix any issues
– Find a new buyer — Re-market the property. Prioritise cash buyers or first-time buyers for speed

What Happens to the Mortgage Offer?

– Some lenders may let buyers transfer their mortgage to another property
– Others will require a new application
– If the sale falls through, buyers may need to re-submit documents like payslips
– Legal costs already paid may still be due (check solicitor’s terms)

Do You Still Pay Fees?

Buyers:
– May lose money on surveys, searches, and solicitor fees
– Some solicitors offer “no sale, no fee” – check your agreement

Sellers:
– You won’t pay estate agent fees unless the sale completes or 6 months have passed
– You may still owe solicitor fees for work already done

Conveyancing Delays

– The legal process can be slow and complex
– Stay patient, keep communication open
– Delays alone don’t mean the sale is lost

Need help navigating a failed sale or starting over? Armaani Estates is here to guide you every step of the way.