Q. I agreed to purchase an apartment in august last year and unfortunately have still not been able to exchange contracts due to considerable delays on the legal side, which are no fault of my own. However, I have just had extremely shocking news, my vendor’s solicitor has just informed me that because of the current market conditions he has now increased the price of the property by another £10,000 pounds. Surely he is not allowed to do this?
A. This is extremely bad news for you I agree, particularly as the hold up in exchange of contracts has not been delayed from your side. Unfortunately, and although a very unfair position to find yourself in the vendor is perfectly within his rights to demand a price increase if he feels the property is being undersold, right up until exchange of contracts as the purchase does not become legally binding up until that point. Of course, this will leave you with two options, firstly if you feel that this is foul play you can of course return the contract and withdraw from the purchase. Secondly, after looking around at similar properties if you really feel that the new price is current market value and you will not be able to find something else suitable at your original purchase price, paying the extra if you can raise the cash would seem the most sensible option. As estate agents, we are never comfortable with such a situation, but of course have to take instructions directly from our client the vendor.