How much will i lose????

[cowoman]

We have put 10% down on a house that we both loved.After a second visit we have changed our minds and dont want to buy.I know that we will lose the deposit as the 7 days are up.We have signed to give the estate agent power of attorney in our absence.I think to myself is it worth losing £13,000 and not going through with something that now dosnt feel right.I am taking notice of my gut feeling now.Would we also incur costs from estate agent and notaire??Do you think i should go through with sale and try and sell at later date when we do it up abit???Sale is due to be completed at the end of December.

[Pads]

Phew thats a lot of money to lose. But like you said it may be better than being saddled with something you dont want, Have you asked your self why you want to pull out, could it be last miniute nervers?  I had a bad case of these in the weeks after signing the first lot of paper work, but so glad now I never pulled out.  Is there something wrong with the house.? Do you have a good reason or is it just gut feelings, do you think if you give it another week you may different again ? If I was in your shoes I would give it another week before you act just in case its hormones mixed with fear of the unknown ..................[;-)]    

[cowoman]

Thats sound advice thanks.

Cant put my finger on why we both feel like we do.I always advice the kids that if they ever get a little voice telling them anything then they should act on it.I would feel a hypocrite if i ignored this "little voice".Dont know why its like this,thats the worst part, I just cant give a reason.Thanks for writing back

[Pads]

It does sound like last minute nerves, we spent weeks scared silly and asking each other, oh what have we done.....................and I had to sternly speak to my hubby who wanted to ring and pull out a couple of times. now we know its one of the best things we have done.   

[Catalpa]

Can you make another visit as soon as possible... ideally immediately... to see whether that calms your inner voice?

Are

you intending it for a holiday home or for a permanent move? If it is

for a permanent move, it is an enormous step you are taking and nerves

should be considered an entirely normal - and rational! - part of the

process. Your inner voice may be right and you shouldn't continue with

the purchase... or it may mean that you should try and vocalise the

inner voice's mutterings and establish whether it is talking sense or

just trying to scare you.

As for whether you should buy then

sell - how long was it on the market previously and were many people

interested in it? That should give you an indication of how quickly you

might be able to move it on.

Other than comforting you with the view that anyone not having at least a few nerves would be daft! there's not much else I can say. [:D] Have fun cogitating!

[ChezShells]

I'd go through with the purchase, you might get to like it, if not sell it and while its for sale look for your next one, once there you will find the right house and location.
I always say go with your first instincts, I always change my mind and later wish I had gone with my initial ideas.

Depends if you can afford to lose your 10%, if you can then you might as well pull out but ask about it first, you might not have to pay the full 10% if you give a good reason.

[Kitty]

Not sure about this but can someone say if it is right.  I thought that there were 2 "cooling off" periods - one after 7 days and another after (about) 42 days, the latter being if finance hasn't come through.  The latter depends on whether the prelimary contract had a conditional clause for obtaining finance and that most contracts include this clause.  Am I right? Or am I giving our original poster false expectations?  Profuse apologies if I am.  I thought that it was worth mentioning as £13K is a lot to forfeit.

[Kitty]

Another issue .  I woud think that there is little point in buying with a view to selling it shortly afterwards.  The costs of buying and selling are so high in France and there's also capital gains tax to consider (if there is any gain).

[mint]

Yes, £13k is a lot to lose but in the context of the sort of worry and hassle you'd go through if you bought and then feel you've done the wrong thing, it's probably worth losing!  Better to lose £13k now than possibly quite a lot more later plus all the sleepless nights and stress.

We too were uncertain about our house.  But we did think that, if the worst came to the worst, we'd walk away and lose the deposit.  Hell, if the market takes a bit of a dive, then you might lose that amount anyway.

Us women are intuitive creatures and our gut feelings often mysteriously prove to be right.  Alternatively, ask yourself, if you did complete the purchase, can you inagine yourself living in the house and being happy about being there?

[PaulT]

No one has answered a part of the question:

I think I am right that you will be liable to the agents fee which is probably 7-8% of the sale price, especially as you have signed the compris which states all the fees payable. Plus the notaires costs will be payable.

Paul

[cowoman]

Oh hell does that mean then that you lose about 18,000?????Not just 10%.

[Sigognac]

Hello,

the conditions and what exactly you will loose should all be stated in the "Compromis de vente" (normally in the Acte authentique section). You are unlikely to incurr "notaire" fees, but there is a good chance the estate agent will have covered himself and included a clause for his own fees.

The compromis includes "conditions suspensives", and there might be dispositions for mutual agreement, which might leave you a bit of wiggle room. However, at this stage I think it is essential you seek qualified legal advice and phone the agent who should be able to state clearly what it is exactly you risk loosing.

As for the decision whether to buy or not, the main question is more about your income once in France, than the property price. The house market changes all the time, but the income should be more predictable.

 

[Just Katie]

When sales men attend courses on how to sell, one of the topics covered is 'buyers remorse' and how to ensure the sale is finalised when the purchaser feels this.  It is widely recognised within the sales industry that people have these feelings as you do.  It is normal.  Purchasing a property is a huge commitment especially in another country.

Do as Catalpa said, get back out there and use your vision, then see how you feel.  The property obviously made a good first impression on you - so that cannot be a bad thing.

[ams]

That is a lot of money to lose. however a provision does exist where at the final signing and payment you do have the right to put the property into a different name. so if you or the estate agent could find another person to purchase the property at perhaps a lower price, you would be able to recover some or all of the deposit paid.

 

ams

[Pads]

Shouldnt the Notaire of imformed cowoman exactly how much she would lose and why? when the first lot of paper work was signed, I remenber that being one of the important things that he pointed out to us and made very sure we understood be fore signing. I do beleive that it was also written in to part of the agreement we signed. If this has not been done, and she wasnt aware, can she use this to get out of some of it ?   

[cowoman]

hello,thanks for all posts,its much appreciated.we are in England and was buying the house to own and do up for when we could live in it in a couple of years time.We signed the 7 day thing after it was sent to us by recorded delivery.We havnt got a copy of this now as we sent it back.Before this the agent sent us a pack and put initials where we should sign.There was only two sheets that had no initials on it so we kept these,but this was a mistake as we had to sign these and send them back as well,so we havnt any paperwork for these either.All we have is a pink sheet with our deposit on it,its a receit

[Pads]

Request a copy , you should have one , it can be sent by email. then you can check to see if its written in , what you would owe if you pull out . Have you decided if you are totally pulling out , or is it still up in the air ? 

[AnOther]

I don't wish to worry you further but I had an niggling feeling in the back of my mind from somewhere about this sort of ituation and found it HERE

I quote:

"In most circumstances, the buyer pays the Agent, regardless of whose fault the failure was. This depends on ones contract with the Agent, however - some will not expect their fees, or reduced fees in he event that the sale does not complete.

Small point. If one forces the failure of the sale, because you have changed your mind, even if it looks like a failure of the CdV or the Vendor, the Notaire must advise the Vendor to force the sale through the Courts - or threaten to, at least. And vice versa"

I cannot say with certainty if this is true or not so can somebody else either confirm or debunk it ?

On balance I would tend to think it could be because by signing the compromis you have entered into a legally binding agreement to buy. After your 7 days are up I'm pretty sure that only a clause suspensive or something as catastrophic as a sudden death of a partner can get you out of it without penalty.

[Nearly Retired (I am now)]

If you have to proceed with the purchase you could then rent it out. Furniture and setup costs will be much less than your 10% - 20% projected loss. See how you feel about strangers living in your house for a year. If you detest the idea it might just well be the house for you.

Who knows you might take a liking to being a landlord and this could be the start of a whole new lifestyle.

This comes from someone who has long preached (and bored everyone!) that negativism should be banned and that all situations can be turned into positive opportunities.

[cowoman]

Seems like they want 33,000 euros.So ive got to seek legal advise.Thanks for all posts ive just got to think long and hard on this one

[cowoman]

Hello have had a thought that we might just carry on with purchase then sell at a later date.Does anyone know if when you sell a french house the government take any profit that you might make.Our situation is we are renting in england so dont own anywhere here.Or if we sell later on and the property has gone up with house prices then we keep that so it could be an investment rather than a terrible loss???Thanks in advance

[suein56]

[quote user="cowoman"]Seems like they want 33,000 euros.So ive got to seek legal advise.Thanks for all posts ive just got to think long and hard on this one[/quote]

When I had a legal query re the nature of our residence in France, as we do not own our home here but rent 'à l'année', I was given a 'free' interview with the notaire. As in the UK you can ask for legal information relevant to you and there should only be a charge if the notaire or solicitor actually physically does something such as writes a letter on your behalf or prepares a document for you.

Beware, also as in the UK, you might need to stipulate when requesting the interview that it would be for information only.

Sue

[Sunday Driver]

[quote user="cowoman"]Hello have had a thought that we might just carry on with purchase then sell at a later date.Does anyone know if when you sell a french house the government take any profit that you might make.Our situation is we are renting in england so dont own anywhere here.Or if we sell later on and the property has gone up with house prices then we keep that so it could be an investment rather than a terrible loss???Thanks in advance[/quote]

Sounds like you're coming back round to your original plan - purchase the house and move to France.  You never know, you might even get to like it...[;-)]

If you give up your UK rented house and move across into the French house, then you become permanently resident there and pay no capital gains tax on any subsequent sale.  However, as far as treating the French house as an investment, property prices here are no where near as volatile as in the UK.

 

 

[cowoman]

Thanks for all your input

The latest is we are now the owners of our french house we went through with the sale as we would have lost too much money.We feel quite happy about it now and will say that the estate agent reduced his costs by two thousand 400 euro if we proceeded.So that was a bonus.We are looking forward to doing the place up and renting it out,as well as having holidays there ourselves.I think we had a bad bout of nerves.Just thought i would let you all know who answered my questions thankyou for answering and things are now hunky dory

thankyou

[Sunday Driver]

Glad to hear everything's turned out well.  Everyone's entitled to a 'wobble' at times like that.....[;-)]