Estate Agent - Conflict of Interest

morgsismyname

We have recently listed our property with a Real Estate agent and in the first week had a viewer make an offer. This was communicated verbally and accepted after we agreed to pay the 5% vendor deposit due to the prospective vendor not having enough of a deposit (no offer in writing has been made).

Last week the prospective vendor was meant to have finalised their mortgage with the financial adviser, however we have still not heard anything room the Estate Agent and to complicate matters a member of staff from the Estate Agents office came to view the property on Saturday and then through the office contact, made a really low offer – verbally to which we said no.

Our concern is that the Real Estate staff are withholding the offer from the other viewer. No survey has been carried out and we are still waiting for the sale to progress. What can we do we have only been with the Estate gent for a few weeks, our contract is for 16 weeks and we cannot terminate it yet although we have found the staff to be less than helpful over the last few weeks

What can we do to ensure they are working in our best interests?

Incisor

Is there a memorandum of sale for the deal you have? I think you should ask for a report in writing on the state of that deal. I don't know where ti takes you, but it should make them sharpen up their act a bit - and with the info you can make more decisions. You would need advice, but given the conflict of interest, if you don't get a report in writing, in your position I would consider moving on from that agent before the 16 weeks.

morgsismyname

Hi

Thanks for the comments.

The Estate Agent has never put anything in writing and the two offers have been verbal.

The contract signed at the outset was a standard 16week contract - its a well known Estate Agent branch not a small practice

How could I get out of the 16week contract early without having to pay them, surely if we leave early we may be liable or the 2% charge?

PropertyPro

All offers should be confirmed in writing.

It concerns me that a member of staff came to view after the initial offer had been accepted without anybody letting you know what is going on with your agreed purchase. The fact that the member of staff made a low offer makes me think all is not well with your original buyer.

It's time to put the pressure on the agent. Go in their office or call them to find out exactly what is going on with the agreed offer. Don't let them do nothing while the buyer is trying to get finances sorted out - they should have done that before making the offer.

It will be difficult to get out of the agents contract and if you do leave and go with another agent, they may charge their fee if the new agent sells the property. of course, the selling agent will also want to be paid, so be careful.

Incisor

No memorandum of sale = no deal, which makes it difficult. But given that there is a clear conflict of interest, you should demand a clear statement in writing from them as to what has happened to the other deal, plus the address of the person making the offer. You have to have good reason to terminate the contract, which is why I am suggesting fishing for info.

Doozergirl

The quite simple answer is to ask your agent to pass on your telephone number to your buyer and ask them to call you or have them ask permission from your buyer for you to call them directly. See how they're getting on!

I don't see how terminating contracts etc helps when you haven't established that there is an issue. Yes you should have received a memorandum of sale, however.

Offering 5% deposit paid is an issue - it has to be declared and mortgage companies are savvy to this sort of thing and are very likely to downvalue your house accordingly. It's far from a done deal even if your buyer
is still keen - think they will need more cash for the deposit than the 5% you are offering even if it does pull off.