Can my estate agent do this?

casper_g

Deleted_User wrote: »

Only if the two are next door to each other, or competitive within unreasonable proximity.

Why? If you lose your buyer what difference does it make morally, contractually or legally if the house they switch to is next door, in the next street, next town, whatever?

[Deleted User]

casper_g wrote: »

Why? If you lose your buyer what difference does it make morally, contractually or legally if the house they switch to is next door, in the next street, next town, whatever?

I would argue it makes a massive difference as it determines who the EA owes their allegiance to.

Clearly, at the heart of their business, the job of the EA is to make as much money as possible. But it does that by acting in the best interests of its clients; if it didn't act in their best interests it would soon stop receiving their custom.

So, you'd be unreasonable to suggest that an EA should only have 1 client per town, for example. There has to be a balance at which point they are acting in clients' best interests as well as their own best interests - where everyone is happy.

But two clients next door to each other? That would create a conflict, surely? It's too much in their interests and not enough in yours.

Only 1 client per town? Well, that's in your interest and not enough in their's.

Anyway, back to the OP's question: I would have thought common sense and decency should apply. If the EA has taken an offer from you and given it to one of their other clients I would be pretty disgusted and be looking to see what I can do to get rid of them ASAP, because it's clear they are putting someone else's interests above yours. In a sensible world they should have realised that having neighbouring houses on their books would cause a conflict of interest.

In any event - and out of interest - what was the difference between the properties? Cost? Size? That also influences our opinion.

[Deleted User]

Incidentally: http://www.naea.co.uk/uploads/COP/OEACodeSales%20Part%202.pdf

"You must make every attempt to avoid a conflict of interest. You must disclose - in writing - to your client or any relevant third party - any existing conflict of interest, or any circumstances which may give rise to a conflict of interest"

I would have thought that it's crystal clear that the Estate Agent for the original poster has completely failed to uphold this provision and so provided they are a member of the NAEA you could make a complaint through this channel.

Also:

"after acceptance of the offer by the seller, and until exchange of contract...your obligations to the seller are: to monitor progress; to assist where possible"

The last time I checked the definition of 'assist' it read "to give help or support to" - I would have thought that by showing the prospective buyer the neighbouring property the EA is completely breaching this provision too; in fact, this is stressed an an 'obligation'.

johnson293

Just seen this thread, but when we put our house on the market last year, the house adjoining our semi had already gone up for sale a few weeks earlier.

We ended up using the same Estate Agent, as they had pretty good history of selling in the area, even in the market at the time.

Next door was up for £79,950... ours went up for £89,950 after advice from the EA valuer who had also valued next door, as ours had the extra value in it.

All the viewings I had, also had appointments to view next door at the same time.

The EA probably played us off against each other, as they phoned me after 2 weeks to drop my price from £89,950 saying that next door had just dropped theirs, and would be more attrcative. I had quite an argument with the EA over that one!

In the end I dropped my price to £79,950 and they dropped to £69,950 - Ours sold about 6 weeks earlier than the one next door - with ours ultimately selling for £79k, and theirs selling for £68k.