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Aston Lawyer
Aston Lawyer, Solicitor
Category: Property Law
Satisfied Customers: 10543
Experience:  LLB(HONS) 23 years of experience in dealing with Conveyancing and Property Law
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I am selling a site, head of terms is agreed, commision is

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I am selling a site, head of terms is agreed, commision is agreed on completion of deal with an intermediate, solicitors have been engaged by both sides, but no contracts have been sent or exchanged, the other party got to this stage before then withdrew and came to me and renegotiated a lower price because of Brexit etc. However I am not happy with the deal and I have interest from other persons at a higher price. The question is can I withdraw from the deal, without any fear of being sued by the other party or the intermediary for loss of commision?
Submitted: 1 year ago.
Category: Property Law
Expert:  Aston Lawyer replied 1 year ago.

Hi, thanks for your enquiry. I am pleased to say that you are indeed free to withdraw from the Sale, without any penalty or liability to the proposed Buyer. Only once Contracts have exchanged is there a legally binding agreement between a Seller and Buyer. At any time before Contracts are exchanged, either party can pull out and the Agents fees are only payable once Contracts are exchanged, so you won't have to pay them anything either, at this stage. I hope this clarifies the position to you. If so, I would be grateful if you could rate my answer. Kind Regards Al

Customer: replied 1 year ago.
there are no grey area's if the other party has incurred expenses i.e survey, valuation costs etc or where by the agent / introducer can claim loss of commision for me pulling out ?
Customer: replied 1 year ago.
Upon answering my last question. Also could you claryfy what head of terms or memorandum of sale are in there legal capacity and are they the same thing?
Expert:  Aston Lawyer replied 1 year ago.

Hi, I can confirm that you are under no duty whatsoever to pay the Buyers legal or valuation fees, like he wasn't responsible for any of your legal fees when he pulled out of the original deal! The Heads of Terms are the same as a Memorandum of Sale and are not a legally binding agreement- they are merely setting out the terms of the proposed Sale, and are "subject to Contract" (ie the agreement is subject to the parties exchanging Contracts and only at that point are both parties bound to the agreement). Please don't worry- you have absolutely no liability to the proposed Buyer!! Kind Regards Al

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