Estate Agent tactics

Mr_Linnet

Posting this on behalf of my daughter.

She and her boyfriend have shopped around and recently agreed a mortgage through an independent financial adviser and are in the process of having a survey carried out on a property early next week. Hopefully this won`t highlight any problems.

Just in case this one falls through there is a second property they are interested in with another estate agent. The other estate agent has told them they are free to view the property concerned but would be obliged to visit the estate agents own financial adviser before my daughter and her boyfriend would be able to make an offer for the property even though they have a mortgage offer with their own financial adviser.

Is this normal or acceptable behaviour for an estate agent?

Would like to hear other peoples comments.

Many thanks Steve

tek-monkey

Mine wanted to see my agreement in principal, but that was all. If they'd said I had to consult their FA I'd have told them to FO! I'd also drop a note through the vendors door to let them know I was interested, and the reason I never viewed.

Jewel_2

I would tell them to get lost. Is your daughter quite young and trusting, and a nice person who gives people the benefit of the doubt? Apparently that disappears by the time you are 40 (ie, my age), where you can be cynical about everyone until proven otherwise.

SandC

They are trying it on, agree with above advice. They seem to be happy for them to view though. If it comes down to it you have an offer in principle and that's good enough. They can show that to their FA.

princeofpounds

Tell them to take a hike, and that you will approach the owner direct to let them know of their behaviour if they do not arrange a viewing.

If they are a member of an official organisation may be worth a complaint (after the purchase!), even better if you can get this 'rule' in writing from them, perhaps an email.

Is it normal? No, but it does happen. Is it acceptable? No. Industry associations bar it in their codes of practice, but there is no regulation of the EA industry.

DVardysShadow

No it is not acceptable. The most they should do is offer to show the Acceptance In Principle to the Agent. Under no circumstances should they reveal any other financial info to a mortgage advisor, because this can turn into a lever for the Agent to start squeezing them. This tactic must be resisted by every means.

Otherwise, I would go with tek-monkey and drop round to see the vendor. They could even hint that as the agent had refused them a viewing, the vendor would have a sporting chance of not paying the agent's fee. I am making that last bit up, but it might be worth a thought.

Mr_Linnet

Thank you all for the fantastic responses

The other estate agent hasn`t refused them a viewing but has said my daughter and her boyfriend would be obliged to visit the estate agents own financial adviser before considering an offer.

The property is actualy empty at present and viewings are with the estate agent accompanying them.

I`m hoping they don`t have to pursue this option and that the first property doesn`t present too many problems on the survey. However, I thought it worth a mention on the forums regarding the second agents stance and trading practices. I would actually name and shame but don`t know whether I`m allowed to.

Many thanks again Steve

princeofpounds

You would be able to find the contact details for the owner on the land registry anyway most likely, so even if its empty going direct shouldn't be a problem, and the EA should back down when they realise someone knows the game.

chickmug

princeofpounds wrote: »

but there is no regulation of the EA industry.

Yes there is see my next post.

chickmug

Sorry to repeat this which I have posted so many times: -


Following from the NAEA Code of Practise

Offers
a) By law you must tell clients as soon as is reasonably possible about all offers that you receive at any time until contracts have been exchanged (in Scotland, missives have been concluded) unless the offer is an amount or type which the client has specifically instructed you, in writing, not to pass on. You must confirm such offers in writing at the earliest opportunity and keep a written or computerised record of all offers you receive.

b) You must not discriminate, or threaten to discriminate against a prospective purchaser of your client’s property because that person refuses to agree that you will (directly or indirectly) provide services to them.

Discrimination includes the following:
• Failing to tell the client of an offer to buy the property.
• Telling the client 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 those who have indicated they are prepared to let you provide services to them.
• Making it a condition that the person wanting to buy the property must use any other service provided by you or anyone else.

c) You must take reasonable steps to find out from the prospective purchaser his source and availability of the funds for buying the property and pass this information to the client.

Bibliophile_2

We experienced exactly the same, however in our case we were ready to make an offer on a property, which the EA said we couldn't do until we'd seen their Financial Advisor....... and, by the way, their FA was fully booked for over a week, so we would have to wait 'til they were free!

We refused as we already had our mortgage in place. After some to-ing and fro-ing the EA got their area manager to ring me to try and persuade me to see the FA, saying they needed our id paperwork and evidence that we had a mortgage in place to make an offer. They said their FA was the only person authorised to check id??!

We refused again, but decided to make an offer, knowing they were legally obliged to pass it on.

We eventually agreed the purchase and provided the paperwork once this was done.

I know EA's are meant to verify buyers details, but this needs to an easy process, without putting off genuine buyers.