Estate Agent behaviour - fair/legal?

Tracey1_2

Can anyone help to clarify if this is legal and fair behaviour on the part of the estate agent? I viewed a house today for £130k and put in an offer of £122k (I have viewed 2 other houses in the same street but the first went before I was in a position to buy and the second needs so much work done it is daunting) The agent came back and said the vendor was looking for £125k - I replied that I wasn't going up to the threshold and as the porch needed attention, my top offer was £124. They again came back to me and said that the vendor would accept the offer on the condition that I went through the agent for my mortgage (I have an MIP through London & Country). Surely this is nothing short of blackmail! I feel that it has either come from the agent or they have convinced the vendor to make this condition by saying the sale would drag on otherwise. Can I ask for the vendor’s contact details to speak to them directly? I feel they are trying to back me into a corner by saying how many viewings they have booked. I've told them that I will hear what they have to say but will go with the mortgage deal that suits me - they still want me to go in tomorrow so they could 'cancel any further viewings if we got things sorted'. Surely this is not legal and fair behaviour. I don't want to lose the house (as I know it is a nice property in an area I love) but I refuse to be blackmailed. They then started to go on about using their solicitor - even when I said I had my own from my last house purchase). In my experience, it seems like agents are really pushing their mortgage products at the moment. I have a feeling that's how I lost out on my last place (a repo - the other buyer went through the agent for their mortgage. Another example is when I contacted an agent to view a property, I was called back by someone wanting to set up a mortgage appointment - I told him I just wanted to view the (darn) property at this stage! I have tried to get in touch with L&C to ask their opinion, but have not had a reply. I would speak to the vendor but they have already moved out of the property. Can anyone advise please?

FireWyrm

Of course it's fair. Not moral perhaps, but there's nothing illegal about it. However, there is nothing that says you need to play. Tell them to stick their 'mortgage advisor' visit and remind them they are legally bound to pass on all offers to the vendor. You don't need them to tell you the name of the vendor, you have their address already. Personally, I'd drop a letter through the door telling the vendor exactly what you have told us and inviting them to contact you. It's absolute stupidity on the part of the EA in this climate to alienate a potential buyer and I'm sure the vendor has no idea this is even happening. The EA is trying to get a kick back from you visiting their 'advisor' who will apply the thumb screws and try to get you to go through them. Tell the EA (semi) politely that you have no intention of complying, you don't need their services and if they persist, you'll look elsewhwere and then watch them do an about face faster than the PM.

BitterAndTwisted

Of course they're pushing their mortgage-broker's services, they get a commission. Much more important to you is that once you have disclosed your financial information to the broker this goes straight back to the agent and they will know exactly how hard you can be pushed to improve your offer. Expect to be wrung out like a dishrag.

Adi770

Avoiding bias

You must not discriminate against potential buyers because they don't want, or might refuse, to take services from you or a connected person.

For example, you must not:

• refuse to provide information about a property to these buyers
• take longer to send property information to these buyers, compared to others
• set additional requirements, as a condition of passing on an offer, eg, forcing them to have a mortgage survey before you will pass on their offer to your client.

taken from Estate Agents Act 1979.

DVardysShadow

Letter to agent, recording that the vendor has accepted 124 subject to mortgage being through agent's advisor. State that you are prepared to proceed at 124, subject to confirmation that the agent will not interfere in your mortgage arrangements. Copy through Vendor's door.

If vendor is not party to the stipulation about the mortgage, they will be livid. I would be livid. I would be around their office so fast that my feet would not touch the ground and they would not be doing any other work until they had got the deal agreed and apologised to you.

It is possible that the agent has conned the vendor into believing that it is in his best interests to let the agent do this.But if they realise that you are not going to have it, then I expect they will feel sick as a parrot and change their mind.

Tracey, I guess you are new to buying. Now take note of this advice for both sellers and buyers. The agent is paid by and works for the seller. For that reason, a buyer should never take any kind of financial or legal service from the seller's agent. This is something sellers need to recognise too - if their agent is selling services to buyers, it will not go down well with many buyers and it is not good for the agent to be in the position where they can choose to sell to someone who takes a mortgage from them, rather that to someone who has their own mortgage in place.

Tracey1_2

Thanks for your speedy responses. I will go into the office tomorrow and show that I am not the sort of person to accept things without doing some research first! I need to take my MIP but should I blank out the amount I am allowed to borrow (more than my offer) or should this not matter now that the offer has been accepted in theory?

I have already drafted a letter to the vendor explaining the situation (in case, as I suspect, that they are not fully aware) and explaining that I am prepared to withdraw my offer if they back up/ insist the agent's condition. As I can not post it to them (they have moved out of the property they are selling), I will give it to the agent to pass on.

As advised, I don't intend to use the agent's services and I have explained this to them. Looks like they may need to be told more forcefully. It's just trying to keep on the right side of agents, all the time being aware from my limited experiences, that you can't usually trust them as far as you can spit! :T

DVardysShadow

Tracey1 wrote: »

Thanks for your speedy responses. I will go into the office tomorrow and show that I am not the sort of person to accept things without doing some research first! I need to take my MIP but should I blank out the amount I am allowed to borrow (more than my offer) or should this not matter now that the offer has been accepted in theory?

I have already drafted a letter to the vendor explaining the situation (in case, as I suspect, that they are not fully aware) and explaining that I am prepared to withdraw my offer if they back up/ insist the agent's condition. As I can not post it to them (they have moved out of the property they are selling), I will give it to the agent to pass on.

As advised, I don't intend to use the agent's services and I have explained this to them. Looks like they may need to be told more forcefully. It's just trying to keep on the right side of agents, all the time being aware from my limited experiences, that you can't usually trust them as far as you can spit! :T

No, don't take in the MIP. The agent may twist your arm, but precisely because of how the agent is carrying on, you should not give in to this. Advise that funds will be confirmed via your solicitor or Mortgage advisor, both of whom are on your side.

If you write a letter along the lines I say to the Agent, you can be sure that any copy letter you give to him for the vendor will NOT be passed on. You will do better to drop the letter around to the house, suitably addressed

BitterAndTwisted

DO NOT GIVE THE AGENT AN INKLING THAT YOUR OFFER ISN'T RIGHT AT THE TOP OF WHAT YOU CAN AFFORD OR YOU"LL BE SCUPPERED! Most certainly do not let them see the numbers on the MIP. It's a game of poker so don't be the first to blink.

Tracey1_2

Quite difficult not to take a MIP as all agents I've had dealings with seem to require this to make an offer. Copying it without the amount shouldn't be a problem though.

As I don't know the vendor's name/address, the only way I can let them know the score is either through the agent or leaving at the empty house and hoping they pick it up (could take a while) unless I start knocking on their ex-neighbours' doors to ask for their new address.

suki1001

Would it be worth getting another mip with the exact amount on? They're not going to push they they see you have nothing further to gain.

WhiteHorse

Tracey1 wrote: »

They again came back to me and said that the vendor would accept the offer on the condition that I went through the agent for my mortgage

They are dishonest.

Can I ask for the vendor’s contact details to speak to them directly?

You can ask, but will be refused. If you really want to find the vendor, go to the Land Registry.

I feel they are trying to back me into a corner by saying how many viewings they have booked.

You are right, they are.

... they still want me to go in tomorrow so they could 'cancel any further viewings if we got things sorted'.

They 'want you in' so they can subject you to high pressure selling. Tell them to screw themselves.

They then started to go on about using their solicitor

This estate agent is completely bent. You really ought to go elsewhere.