Do agents need to pass on new offers after acceptance of another offer?

CarlK

Hi,
I have recently made a few offers for properties with different agents. In each case, my offer has not been high enough and another offer has been accepted.

There has never been an attempt made to ask me to increase an offer, and I understand that estate agents won't push for that, because they just want to get the sale closed.

When I have called to suggest placing another offer they have told me that the property is under offer and that they are no longer taking offers.

However, over the weekend I happened to be speaking to another agent, and while we were chatting, he happened to mention that the agent has a legal requirement to pass new offers on, even if another offer has been accepted, up to the point that contracts have been exchanged.

I wondered if anybody here can confirm whether that it correct or not?

Thanks in advance for any help.

CloudCuckooLand

Depends on the instructions of their client, the vendor, I would suspect.

With the difficult mortgage situation at the moment, they would aim to select the most proceedable offer even over more money, in many instances.

The situation you describe may relate to repossessions.

G_M

Yes an agent has a duty to pass on all offers. It is up to the seller whether they ignore further offers once they've accepted an earlier one.

Agents are sometimes reluctant to pass on new offers since if a seller did switch to the new, higher one, the sale gets delayed and might never complete - the agent wants their commission!

So what is an offer? If you are chatting to the agent and say 'I could go to £XK', does that constitute an offer which the agent is obliged to pass on? Open to interpretation. So if in doubt, put the offer formally in writing to the agent. Then they have to pass it on.

CarlK

G_M wrote: »

Yes an agent has a duty to pass on all offers. It is up to the seller whether they ignore further offers once they've accepted an earlier one.

Thanks, very useful to have that confirmed.

G_M wrote: »

Agents are sometimes reluctant to pass on new offers since if a seller did switch to the new, higher one, the sale gets delayed and might never complete - the agent wants their commission!

Yes, I definitely get that impression. Why bother to get the vendor another £5,000 when you will probably only see £100 of it, and might have to end up doing much more work?

G_M wrote: »

So what is an offer? If you are chatting to the agent and say 'I could go to £XK', does that constitute an offer which the agent is obliged to pass on? Open to interpretation. So if in doubt, put the offer formally in writing to the agent. Then they have to pass it on.

Interesting. I have always been a been nervous about putting offers in writing, just in case I fall foul of making it a legally binding offer. I believe that I just have to put "Subject to Contract" on the offer, but have still always shied away from it because I am not 100% sure.

CarlK

CloudCuckooLand wrote: »

With the difficult mortgage situation at the moment, they would aim to select the most proceedable offer even over more money, in many instances.

Thanks. As far as I know, according to the agents themselves, I have been in the best position with all the offers I have made (being the only chain free buyer). Although I can't confirm it, I believe that I have likely only lost out by £5,000-£10,000 on all the houses (and these are houses in the region of 500-600K, so it is not a massive % difference).

G_M

Interesting. I have always been a been nervous about putting offers in writing, just in case I fall foul of making it a legally binding offer. I believe that I just have to put "Subject to Contract" on the offer, but have still always shied away from it because I am not 100% sure.

Putting 'subject to contract' is a sensible precaution. Note - I'm assuming English law here. In scotland I believe The point at which an offer becomes binding is earlier.

This site might help.

missile

If I were bidding £500-600, I would want some sound legal advice before I bid and in my experience a good solicitor is worth his fee.

ILW

CarlK wrote: »

Thanks, very useful to have that confirmed.



Yes, I definitely get that impression. Why bother to get the vendor another £5,000 when you will probably only see £100 of it, and might have to end up doing much more work?



Interesting. I have always been a been nervous about putting offers in writing, just in case I fall foul of making it a legally binding offer. I believe that I just have to put "Subject to Contract" on the offer, but have still always shied away from it because I am not 100% sure.

That may be your problem. The EAs are not taking your offers seriously as it appears that you are not either.

googler

CarlK wrote: »

I have always been a been nervous about putting offers in writing, just in case I fall foul of making it a legally binding offer. I believe that I just have to put "Subject to Contract" on the offer, but have still always shied away from it because I am not 100% sure.

As someone said, you don't sound serious about any of these houses....

However, the whole situation you've described wouldn't happen in Scotland. Offers are submitted by buyer's solicitors, in writing, because the offer forms part of the contract between you and the seller.

If an offer has been accepted on a property, it will go Under Offer, and generally speaking, no other solicitor, aware of its status, will submit an offer for that property until the first offer has been rejected.

Also, generally speaking, solicitors will only submit one offer at a time for you as a buyer, for the very reason that you state - they don't want you to end up committed to buying more than one property, and having to withdraw from one for no good reason.

LittleMissAspie

ILW wrote: »

That may be your problem. The EAs are not taking your offers seriously as it appears that you are not either.

Why do you and googler say this? Is it because he's making offers by phone? I thought that was normal. We've made all our offers by email because we don't like using the phone, is that good or bad?

sunshinetours

LittleMissAspie wrote: »

Why do you and googler say this? Is it because he's making offers by phone? I thought that was normal. We've made all our offers by email because we don't like using the phone, is that good or bad?

I would guess because of this bit

Interesting. I have always been a been nervous about putting offers in writing, just in case I fall foul of making it a legally binding offer. I believe that I just have to put "Subject to Contract" on the offer, but have still always shied away from it because I am not 100% sure

Obviously if you are serious about buying a property and offering on it then you shouldn't be too worried about putting it in writing (adding STSC as others have mentioned).

In fairness the OP may just be worried about making something binding on him before surveys and legals were done which obviously you wouldn't want if a problem with the title or survey was present.