Buying a Property from a Divorcing Couple – Potential Pitfalls

The main drivers for properties coming to the market are traditionally the 3Ds – Death, Debt and Divorce.

As a property buying agent, we are well aware of the issues that may arise with any of the three Ds. In this insight, we’ll be focusing on buying a property from a divorcing couple and the potential pitfalls around this. 

Buying a Property and the 3 Ds – Debt, Death and Divorce

Of the three Ds when it comes to property sales, why does buying a property from a divorcing couple seem to be the most common scenario these days?

Debt plays a role in property buying and selling as the cost of living increases, and vendors seek the best rates. 

Downsizing is more often replacing Death as a reason to go to market, as there is a growing trend for homeowners in their latter years to pass a larger property on to family before they die and move to something easier to manage sooner. Smaller properties can often be retained as investments rather than sold by inheriting family members.

The 3rd D, however, is gaining a broader definition. 

Divorce is an increasingly common reason for a property to go to market. However, the same challenges apply even if wedding bands weren’t exchanged or if a couple who own a property jointly split. Furthermore, as initial home ownership has become so expensive, there has been a rise in friends and family members pooling resources to buy together to get on the ladder – and when one person’s circumstances change, not everyone involved might be on the same page.

Issues That May Arise When Buying a Property from a Divorcing Couple 

Stacks advises that understanding sellers’ motives is an important part of the buying process and can often influence the success of negotiations and transactions. Unpredictability is the keyword when buying a property from a divorcing couple.

Property transactions are rarely completely straightforward, and when separation or divorce is involved, there is a whole range of additional complications. For instance:

• The desire to sell may not be bilateral. When a divorcing couple is selling a property, it’s not uncommon for one party to be less keen to sell than the other and to look for reasons not to. They may be obstructive in the viewing process and may give conflicting instructions to the selling agent and/or their solicitor.
• The decision to sell may be reversed. When buying a house from a divorcing couple, there is always a chance that one partner may raise enough equity to buy the other out, or there may be a reconciliation.
• The property may be significantly overpriced. In a separation or divorce situation, the vendors are looking to replace one property with two, and the realisation that half the money gets less than half the house being sold makes vendors sometimes wildly optimistic in their valuations.
• There may be uncertainty right up to the last moment. A higher offer may be particularly attractive to a divorcing couple; there may be a change of mind, or one party may simply decide to spoil the deal out of spite. 

Stacks’ Advice to Purchasers Who May be Buying a Property from a Divorcing Couple

At Stacks, we have been in the property market for over four decades. In that time, we have purchased thousands of properties from divorcing and separating couples, so we know the variety of challenges you might face…

• Try to establish the true situation. If you think you may be purchasing a property from a divorcing couple, ask the agent straight out; if they know, they should tell you. If they haven’t been informed, you can often pick up reliable signs yourself when viewing – it’s quite easy to spot signs of one party having either moved out completely or partially. The master bedroom and bathroom offer the best clues. The female party will often talk openly to another woman, so if you get a chance to talk sympathetically to the vendor, do.
• Remember, you’re dealing with two separate people, not one vendor. Don’t assume that the message you’re getting from one vendor is the whole picture. Buying property from a divorcing couple can be an extremely sensitive situation, so try to keep everyone involved.
• The quicker the process, the better: If you decide to buy the property from a divorcing couple, go for a quick exchange and press the deal hard at a sensible level—the more protracted the negotiations, the greater the opportunity for a change of heart.
• Be straight yourselves. Moving the goalposts on timing, price, or any other element of the deal may push the vendors over the edge. You are dealing with people at a very emotional time in their lives, so sensitivity on your part will, to some extent, prevent the trauma that vendors are already suffering from the break-up of their partnership from spilling over into the buying/selling process. Keep your emotions from complicating matters further, too!
• Keep Looking: Assume that the transaction will be complicated and that there is a greater than normal chance of the deal falling through. KEEP LOOKING, and keep your options open. If it’s imperative that you’re in the new house by a certain date, be careful.

How Can Stacks Help? 

At Stacks, we specialise in finding, negotiating, and buying properties for our clients. 

If you have lost out on a property due to any of these scenarios associated with buying from a divorcing couple or perhaps you are coming out of a split yourself, it might be time to consider whether hiring a professional property expert such as Stacks could save you time, money and heartache?

 We are always happy to offer property advice over the phone, so please just call.