Scotland-Can an EA still allow viewings 1 1/2 wks after accepting offer?

jenniferfluff29

I'm gutted.

Over 1 1/2 weeks ago, we had an offer accepted on a house. We have now found out today that the sellers have pulled out as the EA continued to allow viewings and another viewer has now outbid us. I know that nothing is legally binding until missives are concluded but has anyone come across EA's continuing to allow viewings when an offer has been accepted? This means that a someone could outbid us up until conclusion. Didn't think this could happen in Scotland. :mad::mad:

When we sold our house, we did leave our house on rightmove but we did not allow anymore viewings.

Meant to say that my solicitor and I both contacted EA & other solicitor separately last week to make sure everything was ok and they just decided not to get back to us rather than tell us the truth.

Any advice grateful.

googler

Is the selling agent an OEA member? If so, they should have advised you in writing that marketing was continuing, in accordance with their code of conduct for EAs - here

Was your offer accepted at a closing date, or merely accepted when it was made?

I always thought the situation was that, having accepted one offer, if the client instructed their solicitor to end negotiations with that party to begin negotiations with another, the solicitor was obliged not to act for the seller.... I've seen some law society guideline somewhere, will let you know if I find it....

googler

Didn't take long - guidelines and rules

"The following Practice Guidelines have been approved by the Council of the Society:

Where a solicitor for a seller has intimated verbally or in writing to the solicitors for a prospective purchaser that their client's offer is acceptable - whether after a closing date or otherwise - the seller's solicitor should not accept subsequent instructions from the seller to accept an offer from another party unless and until negotiations with the original offeror have fallen through. The solicitor should advise the seller to instruct another solicitor if he wishes to accept the later offer. "

Does this accurately describe your situation? If so, the solicitor acting for the seller is in breach of the above.

Had your solicitor received a 'qualified acceptance' to your (written) offer?

jenniferfluff29

Hi googler

My solictor has had a 'go' at the sellers solicitor for having accepted another offer. I don't think he was very happy with the situation considering the offer was accepted 12 days ago. Our offer and entry date was accepted.

I spoke to the EA tonight. The EA said that the 2nd offer was made by a person who had looked at the house before our offer was accepted. He has also said that the seller wished for his house still to be marketed and accept viewers. He said if sellers wished to do this, he couldn't stop them and therefore any other houses that they market will be the same. However, I will not stipulate that the houses must be removed from marketing for all future offers.

I think that they have continued to conduct viewings (my personal view). The EA also said that he had to give the sellers the 2nd offer even though they had accepted our offer. He said it was up to the sellers solicitor to contact our's to inform us of the situation.

I noticed last week that the house didn't have 'sold STC' on their website and e-mailed both my solicitor and the EA to asked if the house was still ours. My solicitor spoke to the EA on friday and the EA stated that the solicitors now had the paperwork but she would try and get some information for us. I also emailed the EA but they did not bother to email back even though they are open 7 days per week.

The EA is not a solicitor and it is a business. I think they are quite cut throat and they don't have a great reputation in the Perth area. The most annoying bit was that they did not have the decency to get back to us and advise us of the situation. Obviously hedging their bets.

The problem I have now is that if EA's/solicitors are allowed to continue to market a house, then unless there is no other interest in the house then I could be outbid even though my offer has been accepted. It can take between 4-5 weeks to conclude missives in Scotland, especially if sellers solicitors are holding out and dragging their heels. This could become expensive for solicitor fees. So much for not getting gazumped in Scotland.

Just really hacked off. Just wish the property market in Perth would drop like other areas of Scotland, but unfortunately the majority of properties which have sat for the last 8 months are now selling.

Thanks for your thoughts.

Don' t know if my solicitor had received a qualified acceptance. I will check with him. If he didn't then I am assuming that he should have been chasing it up. The guidelines that you found do describe our situation. They did not reject our offer before entering into other negotiations. Well done on finding these. I had tried googling tonight but couldn't find anything relevant.

Judging by the guidelines it would seem that the sellers should have instructed their lawyers to reject our offer before entering into new negotiations. Where would the EA stand on this? Should they have told the new interested party that the house was sold or can they just accept a new higher offer and give it to the seller? The EA could enter into negotiations to finalise price and entry date, before contacting the solicitor. Then the solicitor would only need to reject the original offer and await the new offer as the everything had already been agreed by the EA. Don't know if this is acceptable but the solicitor would never know.

jenniferfluff29

The EA is not listed on OEA website as complying with their code of conduct. How can I find out which rules they are governed by without asking them?

Any ideas? I will have a google (not usually very successful).

googler

If they're not members of the OEA scheme, then look for NAEA membership (National Association of Estate Agents). There's another ombudsman scheme as well, I think, can't recall the name just now.

googler

"My solictor has had a 'go' at the sellers solicitor for having accepted another offer. I don't think he was very happy"

Quite right, too. I think the Law Society might take a dim view of their member's actions....

"I spoke to the EA tonight. The EA said that the 2nd offer was made by a person who had looked at the house before our offer was accepted. He has also said that the seller wished for his house still to be marketed and accept viewers. He said if sellers wished to do this, he couldn't stop them and therefore any other houses that they market will be the same. However, I will not stipulate that the houses must be removed from marketing for all future offers."

You mean you will stipulate this for future offers....?

"The EA also said that he had to give the sellers the 2nd offer even though they had accepted our offer. He said it was up to the sellers solicitor to contact our's to inform us of the situation."

He's duty bound to pass all offers to his client, but the solicitor appears also duty bound to remove himself from acting for the seller if instructed to accept the second offer without rejecting yours.

"The problem I have now is that if EA's/solicitors are allowed to continue to market a house, then unless there is no other interest in the house then I could be outbid even though my offer has been accepted. ...... Judging by the guidelines it would seem that the sellers should have instructed their lawyers to reject our offer before entering into new negotiations."

Yes, and the EAs actions should be in line with the solicitor's in terms of not accepting another offer until yours is rejected...

googler

From the OEA website;

"Since October 1, 2008, it has become compulsory for every estate agent dealing with sales of residential properties in the UK to be registered with a Government-approved scheme for redress"

Go to the EA, and ask WHICH redress scheme they are registered with. Then consult guidelines / code of conduct for that scheme.

jenniferfluff29

Thanks googler

Just found the same info myself and bookmarked so I can find it again (incase they are not a member of any redress scheme)

Thanks for all your help.

RetroBob

The house I am buying (mortgage is in place, just waiting for contract to come through) was changed from "SSTC" to "Available" (and back again when I brought it up), and today has had a minor change made to the description. I'll be on the phone at 9am.

I detest EAs, sadly the majority fully live up to their reputation. I was hoping this wouldn't be the case. Such a shame when one is dealing with huge sums of money.

jenniferfluff29

Spoke to my solicitor today.

He doesn't think that scottish EA's have to comply with any ombudsman but advised that I should speak to the OEA for full facts.

Re. the sellers solicitors conduct. The sellers solicitor stated that the EA accepted our offer, the solicitor then sent out a written copy of our offer but in between the sellers getting back to them with the go ahead for a qualified acceptance, a higher offer came in. My solicitor says that we will have a hard point proving their conduct as he feels it was the EA and sellers who did the wrong and the solicitor was caught in the crossfire.

The other solicitor is therefore saying that they did nothing wrong as the solicitors personally had not accepted our offer and had not received instruction from the sellers to accept our offer. I am not chuffed as it just a technicality that the solicitor had not received an acceptance from the sellers. The EA was acting on behalf of the sellers and accepted our offer on their behalf.

The other solicitors never at any point got back to our solicitor, we only found out as I was getting my solicitor to chase them up.

The house that I nearly had has now got 'sold STC' on the EA website, this had not appeared even when we had our offer accepted.

Once bitten, twice shy. I will not be caught like this again. So much for the scottish system.