Estate Agent disclosing our purchase offer amount! Is this allowed?...

Addz

My partner and I have made an offer on a property that is for sale near us and the offer has been accepted. We have just had the OK with the mortgage people and are organising to have the survey carried out hopefully next week.

The estate agent hadnt changed the sign outside the house to 'Under Offer' or 'Sale Accepted' and hadnt changed anything on any of the websites they advertise on.

So we contacted them and awaited for a response.

On one of the websites they advertise on, they have amended the following text to the property at the bottom of the page:


7 DAYS NOTICE
************** Estate Agents are now in receipt of an offer for the sum of [our offer amount] for [address of property]

Anyone wishing to place an offer on the property should contact ********** Estate Agent Within 7 days of the date of this advert.

Are they allowed to do this? I mean it seemed a little odd to see our offer amount as clear as day advertised on the internet for all to see. Both my partner and I are 1st time buyers, so have no idea if this is normal practice or what!?!!??!

I was always led to believe that offers are kept confidential between the parties involved. At the moment, every man and his dog can see what we offered.

Are they allowed to do this?

And where do we stand legally on getting them to change the sign outside the house, and getting them to change the websites?

(By the way, the property is a repossession, in case that makes any difference?)

Any advice would be most appriciated. :beer:

Cheers.

feisty1

quote:(By the way, the property is a repossession, in case that makes any difference?)
yes

Zelie

Yes, they are obliged to as it's a repo. The bank will want to get as much money as possible for it. SOP.

Jorgan_2

The property will have to remain on the open market until exchange of contracts has taken place, so the board and internet ad will remain as for sale.

besonders1

If this is a repossession then this is the normal practice, often today many banks have stopped dong this due to the costs in advertising in the paper involved especially if the buyers pull out which does frequently happen with problems obtaining mortgages. The banks will want to recover the debt and aim to obtain higher offers so yes, you could be gazumped right up to exchange if someone else sees your offer and also want the house if they think that it is worth buying.

Kez100

Yes,this is normal. Just have to cross fingers with great deal repos.

hethmar

It is the usual thing to happen with a repo- anyone can put in a higher offer up to the date you exchange contracts. However, this is normally 28 days and as you are first time buyers and I take it have already progressed the sale, arranged your mortgage application and had a surveyor then it is very unlikely that you will lose the house unless someone comes along waving a wodge of cash at the vendor. They wont accept another offer unless the people are in the same or better position as you.

Try to relax Take it your solicitor has been made aware its a repo and that he will need to move fast. As he probably hasnt got a lot of work on, that should be possible.

spuds_2

Our local free paper often has a pic of a house and the same sort of statement, asking for further bids. They are obliged to get the best price. I can't see anyone, other than a developer, being in a better position and unless the house is being given away developers probably aren't buying at the moment. Good luck.

geoffky

if it was a repo why did you not wait to get it at auction?

feisty1

[quote=geoffky;17200171]if it was a repo why did you not wait to get it at auction?[/quote]

Not all lenders send properties to auction

besonders1

They sometimes can do both, for example, I was gazumped on a repossession sold via an EA by another buyer but his/her offer was also rejected and the house is now going to auction. I think its a bit daft as I would not have offered higher so whoever outbid me (was told by a cash buyer) must be a fool if it is a property developer. They usually go for less at auctions or they don't sell at all, especially in a falling market, so I would think that it would be better to take what you offered rather than risk getting less later on. If people don't make offers higher than you, then it is not worth any more. Likewise for all the homes that are still for sale now.