Can Estate Agents lie about other offers?

Lilyfairy

Hi,

I know that Estate Agents are renowned for being economical with the truth but I'm just wondering if there's any legislation/code of practice that prevents them from blatantly lying about other offers??

We made a series of offers on a house last week and the vendor finally accepted our final offer which was £6,000 below the asking price. We started mortgage proceedings (paid £600 in fees) and instructed our solicitor the same afternoon. Two days ago we had a call from the Estate Agents to say that they had received a substantially higher offer which was in excess of £10,000 more than our accepted offer. They asked us if we were interested in matching/raising our offer but we said, in no uncertain terms, that we wouldn't be prepared to. The vendor decided to accept the higher offer so we have been left feeling very hurt and betrayed. Although I'm aware that this can happen at any time prior to exchange, I'd really like to know if there's any way that Estate Agents can actually make this stuff up so they can push potential buyers for more money?

PPPingu

In this case, as you have withdrawn and sellers have proceeded with higher offer, it doesn't seem that the estate agent was lying, as there was actually another vendor?

hcb42

doesnt seem like anything wrong.

but in any case, you are not entitled to know the ins and outs of other offers. You have to play the game i am afraid, this time it looks like you wouldnt have got the house unless you upped your offer.

KateLiana27

I'm not sure that there is any legislation against it. Plus unless you got details of the "other offer" writing, it would be difficult to prove (and so take action against).

Something about the story sounds fishy though. By my calculations, the new buyers offered £4K ABOVE asking price, when the only other offer on the table (yours) was for £6K below. That makes no sense. Is it possible that the vendor just didn't want to move any more and was trying their chances with you just in case?

property.advert

There must be a way in 2011 for both parties to sign a contract including provision for damages if either pulls out before exchange (or even completion).

Leif

KateLiana27 wrote: »

I'm not sure that there is any legislation against it. Plus unless you got details of the "other offer" writing, it would be difficult to prove (and so take action against).

Something about the story sounds fishy though. By my calculations, the new buyers offered £4K ABOVE asking price, when the only other offer on the table (yours) was for £6K below. That makes no sense. Is it possible that the vendor just didn't want to move any more and was trying their chances with you just in case?

I don't think they have to say how much the house is sold for when a sale is agreed, so the new offer could have been made blind under the assumption that the asking price had been reached, or they might have made several offers until getting a yes back. I offered £X, they said no, so I offered £X + £10K, and they said yes.

There are funny rules on what estate agents can say. Usually when I saw a house and there had been offers, the agent refused to say what they were, and indeed by law they can't. But one or two did, so I assume it was by agreement with the vendor, or they were dodgy. I certainly got the feeling that some estate agents are honest, albeit with the usual sales patter, and some are not entirely honest to the point of saying things that are not true e.g. the house was checked by a builder and there is no damp, or "they are currently negotiating on an offer, would you like to make an offer".

JQ.

property.advert wrote: »

There must be a way in 2011 for both parties to sign a contract including provision for damages if either pulls out before exchange (or even completion).

Why?

I certainly wouldn't sign one either as buyer or seller. The purpose of the time before exchange is to complete all the due diligence - lots can be uncovered in that period that result in a lost sale. Exchange is a very serious legal commitment and certainly not one I would bind myself to after a couple of 20 mins inspections of a property.

nearlyrich

Can Estate Agent's lie?... I think it's compulsory isn't it?

googler

property.advert wrote: »

There must be a way in 2011 for both parties to sign a contract including provision for damages if either pulls out before exchange (or even completion).

There is.

Lobby your MP for changes to the buying/selling legislation in England and Wales.

No need to do so for Scotland, as the OP's situation wouldn't arise here.

poppysarah

PPPingu wrote: »

In this case, as you have withdrawn and sellers have proceeded with higher offer, it doesn't seem that the estate agent was lying, as there was actually another vendor?

Give it a week and you might discover the other vendor has pulled out.

View other houses now though.

*confused*

poppysarah wrote: »

Give it a week and you might discover the other vendor has pulled out.

View other houses now though.

This is what happened with my purchase last year. My final offer was accepted, then miraculously a higher one came in and I was asked to match/exceed it. I refused and 10 days later I had a call to say the higher offer had been withdrawn...

Don't believe for one minute the other offer ever existed in my case.