Agent asking for proof of deposit and mortgage offer?

monkeymonkey_3

Apologies in advance if this is a stupid question. Just wondering if anyone can help clarify something for me - my partner and I have had a mortgage agreed, and have made an offer on a property we'd like to buy. When I called the agent to put forward our offer, he said that he had to advise me that if an offer were to be accepted, they'd need to see proof of deposit (either bank statement or letter from solicitor) as well as a copy of our mortgage offer. Just wondering if this is normal? Are we obliged to show them these? Or am I just being paranoid? We're first time buyers, so have no experience of what is or isn't usual practice

missjy

Am a FTB and the agent asked me for these too - they photocopied them and I kept the originals.
You have to remember that the agent is acting for the seller rather than the buyer - and rather than have people make silly offers that they can't afford or waste time cos they don't have the finances in place, it's better to take 5 minutes photocopying this stuff and save everyone's time in the long run. If I was the seller I would hope that this is what the agent was doing on my behalf too.

opinions4u

The estate agent has a duty to ensure that any potential buyer has the financial means to purchase a property being marketed.

Unfortunately some will use this as a reason to try and force you to buy the mortgage through them (which is optional, not compulsory).

neverdespairgirl

Agent initially took our word for it, then later a 3 line letter from our solicitor saying we were good for the total.

Senior_Paper_Monitor

If it is just about acceptable (albeit over the top in 'demanding' POD and offer) provided it is after any negotiation, see the following:

We regularly have clients advise us that the estate agents for the property are ‘pressurising’ that “unless you use their broker you may not be able to get the property”- we have no problem with you seeing anyone you wish, BUT it is not legal to ‘make you do so’, nor to indicate that it will ‘impact on your ability to buy the property ifyou do not’.

Additionally, extra ‘credit checks’ / ‘Decisions in Principal’ may adversely affect your credit rating …..

You may find the following extract useful:

Extract from The Property Ombudsman Code of Practice for Residential Sales (as of 22.02.10)

· as recognized by the National Association of Estate Agents (NAEA)

· as approved by the Office of Fair Trading under its Consumer Codes and Approval Scheme

6. Submission of Offers

6a By law, you must tell sellers as soon as it is reasonablypossible 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 seller has specifically instructed you, in writing, not to pass on. You must confirm each offer in writing to the seller, and to the buyer who made it, within two working days.

6b You must keep written or computerised record of all offers your receive – including the date and time of such offers – and the seller’s response. Such records should be made promptly.

Discrimination

6c By law you must not discriminate, or threaten to discriminate, against a prospective buyer of the seller’s property because that person declines to accept that you will (directly or indirectly) provide services to them. Discrimination includes – but is not limited to – the following:

· Failing to tell the seller of an offer to buy the property.

· Telling the seller 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 byyou or anyone else.

BUT, bearing in mind that you are the one incurring costs (mortage application, valuation, solicitor etc) well ahead of the vendor you should be demanding equivalent proof of their capability/willingness to exchange. Don't be bullied. We loose over three times as many sales due to vendor failure as to our clients not completing.

GMS

Ask the estate agent how exactly do they expect you to have a mortgage offer when you have not agreed to buy the property? What would a lender make an offer of a mortgage on?

Do they mean a decision in principle?