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    • DML025
    • By DML025 12th Oct 16, 11:51 PM
    • 3Posts
    • 6Thanks
    DML025
    EA requires ID before submitting offer
    • #1
    • 12th Oct 16, 11:51 PM
    EA requires ID before submitting offer 12th Oct 16 at 11:51 PM
    My partner and I are FTBs and have recently offered on a property. Below the asking price, not expecting it to be accepted, but equally, not an unfair starting offer. After making our offer, the EA requested that we attend an appointment as this was standard procedure. They wanted to see ID, AIP, bank statements, the works. I went along, but for obvious reasons didn't provide our AIP or any other financial information as I didn't want to weaken our negotiating position. The EA also suggested that our offer was going to be rejected and that we would be better off letting them know what our maximum price would be (this is just how they operate, apparently...). Again, why would I disclose this to them?

    Sounds like a way of getting us in front of their mortgage advisor to sell services we don't need. We are yet to receive a formal "no" to our offer after 5 days, but part of me is uncertain if they have even put it forward to the vendors - do I wait or give them a call? We know there are no other offers and it has been on the market a long time having already been reduced. It's also on the market with another EA, smaller independent... would there be any harm in approaching them also?

    Thanks!
Page 1
    • G_M
    • By G_M 13th Oct 16, 12:20 AM
    • 37,092 Posts
    • 41,049 Thanks
    G_M
    • #2
    • 13th Oct 16, 12:20 AM
    • #2
    • 13th Oct 16, 12:20 AM
    Put the offer forwad formally in writing.

    See also the TPO Code of Practice:

    9a By law, you must tell sellers as soon as is reasonably possible
    about all offers that you receive at any time until contracts
    have been exchanged unless the offer is an amount
    or type which the seller has specifically instructed you, in
    writing, not to pass on. You must confirm each offer in writing
    to the seller, and to the buyer who made it, within
    2 working days.
    9c By law you cannot make it a condition of passing on offers to
    the seller that the buyer must use services offered by you or
    another party. You must not discriminate, or threaten to
    discriminate, against a buyer because that person declines to
    accept that you will (directly or indirectly) provide related
    services to them. Discrimination includes but is not limited to
    the following:
    • Failing to tell the seller of an offer to buy the property.
    • Telling the seller of an offer less quickly than other offers
    you have received.
    • Misrepresenting the nature of the offer or that of rival offers.
    • Giving details of properties for sale first to buyers who
    have indicated they are prepared to let you provide services
    to them.
    The EA also suggested ....that we would be better off letting them know what our maximum price would be


    Response: "It would be more helpful if you could let me know what the seller's minimum price would be."
    Last edited by G_M; 13-10-2016 at 12:24 AM.
    • csgohan4
    • By csgohan4 13th Oct 16, 8:06 AM
    • 2,602 Posts
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    csgohan4
    • #3
    • 13th Oct 16, 8:06 AM
    • #3
    • 13th Oct 16, 8:06 AM
    be careful about giving them the AIP as it details what your ceiling price is. Certainly redact it or provide it when offer is accepted in writing
    • eddddy
    • By eddddy 13th Oct 16, 8:32 AM
    • 3,858 Posts
    • 3,491 Thanks
    eddddy
    • #4
    • 13th Oct 16, 8:32 AM
    • #4
    • 13th Oct 16, 8:32 AM
    It's also on the market with another EA, smaller independent... would there be any harm in approaching them also?
    Originally posted by DML025
    Whilst this is tempting, assuming the seller has fairly standard multi-agency agreements with both EAs...

    ... now you've offered through one EA, if you offer through the other EA, the seller would have to pay full commission to both EAs, if you buy.

    So the seller might expect you to offer more than other buyers, to cover both sets of fees,
    • DML025
    • By DML025 13th Oct 16, 8:40 AM
    • 3 Posts
    • 6 Thanks
    DML025
    • #5
    • 13th Oct 16, 8:40 AM
    • #5
    • 13th Oct 16, 8:40 AM
    When the EA asked what our ceiling offer would be, I immediately asked what the vendor's baseline is. The EA didn't like this and responded.. "We don't tend to share our baseline". I responded, "I don't tend to share my top line". Perhaps I should have just sat quietly..
    • always_sunny
    • By always_sunny 13th Oct 16, 12:04 PM
    • 1,766 Posts
    • 2,079 Thanks
    always_sunny
    • #6
    • 13th Oct 16, 12:04 PM
    • #6
    • 13th Oct 16, 12:04 PM
    I had the same from an EA, even forcing me to use their FA, basically bluntly saying either I comply or I would stand no chance. I was happy to walk off not use them, eventually I found a property I liked better. Don't feel as you have no other options.
    here on an EU passport.
    • G_M
    • By G_M 13th Oct 16, 12:10 PM
    • 37,092 Posts
    • 41,049 Thanks
    G_M
    • #7
    • 13th Oct 16, 12:10 PM
    • #7
    • 13th Oct 16, 12:10 PM
    I had the same from an EA, even forcing me to use their FA, basically bluntly saying either I comply or I would stand no chance. I was happy to walk off not use them, eventually I found a property I liked better. Don't feel as you have no other options.
    Originally posted by always_sunny
    Complain in writing, quoting the Code of Practice above. EAs need to learn not to do this.......
    • mattk_180
    • By mattk_180 13th Oct 16, 12:14 PM
    • 268 Posts
    • 213 Thanks
    mattk_180
    • #8
    • 13th Oct 16, 12:14 PM
    • #8
    • 13th Oct 16, 12:14 PM
    Not sure why EA's can think they can bully/manipulate people like that, especially in your example sunny.


    If they're being difficult I would just send an offer in writing to the vendor directly, sending a copy to the EA, and explain the reason for doing so is that the EA is being unnecessarily difficult. Might even make the vendor think twice about using them.


    An official complaint as G_M has just said should also be made so they don't get away with doing this kind of thing to others.
    • csgohan4
    • By csgohan4 13th Oct 16, 12:52 PM
    • 2,602 Posts
    • 1,610 Thanks
    csgohan4
    • #9
    • 13th Oct 16, 12:52 PM
    • #9
    • 13th Oct 16, 12:52 PM
    Complain in writing, quoting the Code of Practice above. EAs need to learn not to do this.......
    Originally posted by G_M
    Problem is, it can go in the shredder
    • westv
    • By westv 13th Oct 16, 1:22 PM
    • 4,066 Posts
    • 1,719 Thanks
    westv
    I've only ever had to supply ID to EAs when selling, never when buying - the conveyancer asks for that.
    • monkeysrevenge
    • By monkeysrevenge 13th Oct 16, 2:36 PM
    • 57 Posts
    • 7 Thanks
    monkeysrevenge
    I can't imagine why it would be a problem to show an AIP or bank statement to an EA.

    OK, so an unscrupulous EA might disclose this to a seller. That's illegal if nothing else, and definitely reportable to their professional body at the very least.

    The EA we are currently selling with always asks for proof of funds before putting an offer to a seller, whether that's an AIP or a bank statement showing cash in the bank.

    Otherwise, I could turn up an put an offer in of £500k on a house that I can in no way afford, and when I pull out down the line I would have cost the sellers a lot of money for no reason...

    Some may be put off by this, but as a seller I am reassured that I won't start racking up conveyancing fees for selling my house to someone who can't and never has been able to afford to actually buy my house.

    Of course, they can still pull out at any time anyway, but it's one little check to prove that you're actually serious about buying the place.
    • DoaM
    • By DoaM 13th Oct 16, 2:54 PM
    • 1,013 Posts
    • 921 Thanks
    DoaM
    How often does that happen? (People making offers on a property with no intention - or hope - of actually buying it).
    Diary of a madman
    Walk the line again today
    Entries of confusion
    Dear diary, I'm here to stay
    • monkeysrevenge
    • By monkeysrevenge 13th Oct 16, 3:35 PM
    • 57 Posts
    • 7 Thanks
    monkeysrevenge
    How often does that happen? (People making offers on a property with no intention - or hope - of actually buying it).
    Originally posted by DoaM
    Not likely - but possible.

    We had someone view our house who apparently wanted a character property with a big garden and parking within 5 minutes walk to our local town centre.

    Our house had zero of these characteristics, and yet they still wasted our time in waiting in for them to view with no intention of buying.

    There are weirdos out there and I'd rather suffer as few of them as possible!
    • always_sunny
    • By always_sunny 13th Oct 16, 3:44 PM
    • 1,766 Posts
    • 2,079 Thanks
    always_sunny
    Complain in writing, quoting the Code of Practice above. EAs need to learn not to do this.......
    Originally posted by G_M
    Why bother? The flat was gone anyway, seems lots of work for not much reward.
    I just stopped using them.
    here on an EU passport.
    • DML025
    • By DML025 13th Oct 16, 4:35 PM
    • 3 Posts
    • 6 Thanks
    DML025
    I understand that proof of funds is important for an EA. However, two things:

    1. An AIP doesn't provide proof of funds on its own. Proof of deposit along with an AIP is a far stronger indication. Even then, it isn't really "proof", just an indication that the bank would be willing to lend to you, providing everything else checks out.

    2. Why can't ID & AIP etc. be provided after an offer has been accepted? Requesting an appointment along with AIP, ID, bank statements prior to an offer having been accepted just smells of up-selling to me.
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