Belt Auction

What leagal rights a home purchaser has incase of owner backing out to recover the amount spent on surveys?

I have received the offer acceptance letter from the agent. However, I am a bit worried before committing for surveys as to loosing the money totally in case of owner backing out for a better bid or anyother reasons! Please provie what legal rights home purchaser has!

Public Comments

1. It's your money, your call, if you spend it and the other guy backs out you can't claim. But if you have exchanged contracts and paid a deposit( first step to buying) and then the seller pulls out he has to pay a penalty and I believe its the amount of the deposit. And even at the exorbitant prices surveyors charge your outlay will be covered.
2. Until you sign the exchange contracts, you have no legal rights, and if you have a mortgage they will not agree the sum without a survey. We all have been there when buying a property, once you have exchange you can relax but up to then, its just hoping your vendor is true,
3. Ask your real estate agent if it's too late to amend the contract offer stating that the seller pays for all inspections and surveys if they reneg on the deal. Offer to put in writing that you will pay for all at closing, or if you change your mind and cancel. That should put them at ease knowing that you're not trying to get them to pay for them altogether. Make sure you get receipts from the inspectors and surveyors so that if this becomes a reality, you have something to show the property owner what you paid.
4. Once anything of value changes hand (your deposit) the contract is binding on both parties. But before that, make sure you include any continencies to protect yourself regarding inspection, ability to get financing within an interest rate limit, etc. Once they accept your offer and deposit they have to perform, and you have to perform, according to the terms of the contract. If seller backs out and does not return your deposit or out of pocket expenses, you could sue in small claims court. Likewise, if you back out with no continency to cover the reason they could keep your deposit and possibly sue. Or in rare cases the seller or buyer could sue for "specific performance" to require the other party to complete the sale according to the contract (but that kind of lawsuit would cost more). So they cannot just say here is your deposit back, we got a better offer, go away (unless they have a contingency that gives them an out).
5. If you're in England or Wales, you don't have any rights. Either party is entitled to back out at any time and the other party has no recourse. If you're in Scotland though, the law is different and I believe you would be able to recover any monies spent.
6. If you have an accepted offer AND a signed contract the seller shouldn't back out for any reason, now. Depending on the type of loan you are doing, you-the buyer have the right to back out if the appraisal comes in low or if there are many repairs to be done and the seller won't agree to fix them.
7. You have a couple of options but basically it will come down to your yes or no decision. 1) The survey will be YOUR property if you pay for it. You do not have to share it with the current owner unless you wish to or unless you are obligated by the purchase agreement. If yo decide to pass, you can possibly sell the survey information to the next purchaser. 2) If your property must be surveyed as a legal requirement to purchase or sell, you can find out who has that requirement. Perhaps you can split the cost of the survey with the seller and in that way your risk is onlyu 50%, 3) Not all states have such a requirement. California does not.. are you sure that one is required for you. (Is it a complete survey or just a title survey which reviews past surveys and confirms it). 4) You can always condition your offer that the owner will split costs should he/she/they back out for any reason. .. good luck