Potential Misrepresentation -Connells Estate Agents

DaisychainK

Hi all!

We're first time buyers and have had an offer accepted on a house listed with Connells but there is now a problem and I'd appreciate any advice. In short:

1. Our initial offer was matched by another buyer so it went to best and final bids. We were told we were successful but on the basis of a sale price of 'our offer + £1k but with £1k cashback towards legal costs.' we accepted this and waited for confirmation from Connells that the seller's dad agreed (!).

2. Next day Connells rang to say that another viewing had taken place and that our offer had been beaten but we could revise. Our revised offer was accepted on the same basis of 'our offer + £1k but with £1k cashback towards legal costs.' Seller accepted. Property taken off Rightmove etc and 'Sold' sign put up.

3. We got various mortgage quotes from high street banks and from Connells's own in house mortgage advisor.

4. We have now been told that we are only entitled to the £1k cashback if we use Connells for our mortgage and legal services.

We do still want to buy the house but want to go with a non-Connells arranged mortgage. Do we have any right to insist on the £1k cashback for legal fees? We have nothing in writing as it was all done over the phone (I know, I know)

I have contacted Trading Standards and the Property Ombudsman who have highlighted that EA cannot discriminate or threaten to discriminate against a buyer by:

Making it a condition that the person wanting to buy the property must use any other service provided by you or anyone else.

Has anyone had a similar experience or got any ideas?

Thanks!!

DVardysShadow

Urgh! Messy.

I think Connells would argue that there are 2 separate deals - house purchase and mortgage - which is true enough, because you are dealing with different parties. I think you could try getting them to record the deal in writing, in which case, I would expect the paperwork to confirm this understanding. And you could try comparing notes directly with the vendor, which might throw up more issues.

On the whole, I would be minded to reduce the offer by £1000, tell them to stuff their mortgage advice and be prepared to let the property go.

betmunch

The £1000 is actually paid by the vendor due to some crafty marketting by the Connells lot.

Its a giant scam to get you to use their mortgage broker and solicitors, I have no idea how they get away with it as its clearly discriminating against people that dont want to use their services.

I would suggest withdraw your offer and offer £1000 less and use your own people. The vendor gets the same amount if they accept it anyway

Failing that, leave the offer the same and refuse to use their people, the money you could save £349 by not using the limited panel mortgage advice and likely save a whole load more over the term of the mortgage, and I would estimate you would save about £500 by using a decent solicitor. So while you might pay £1000 more for the house you will save £850 anyway, and have scope to get a much better mortgage deal.

Oh, and its not misrepresentation, sorry about that!

DVardysShadow

betmunch wrote: »

The £1000 is actually paid by the vendor due to some crafty marketting by the Connells lot.

Its a giant scam to get you to use their mortgage broker and solicitors, I have no idea how they get away with it as its clearly discriminating against people that dont want to use their services.

I would suggest withdraw your offer and offer £1000 less and use your own people. The vendor gets the same amount if they accept it anyway

How they get away with the discrimination is that they don't themselves discriminate, they get the vendors to do it for them.

It is a deeply deceitful dodge.

betmunch

But that advertising leads one to believe that it is Connells giving the £1000 away, when it is infact the Vendor!

Either way its shocking and shouldnt be allowed!

Strapped

I'd tell the vendor Connells have lost them a sale and walk away.

DaisychainK

Thank you all for your replies! Glad to hear we're not the only ones who think the whole scenario is deceitful.

Wish we could just walk away but unfortunately we live an area where property is very expensive and there isn't very much on the market - hasn't been for months - so this is a good opportunity for us.

Betmunch, you're right. Even by paying the extra £1,000 so we can use our preferred mortgage provider we would save money. It's the prinicple of the matter though! Not sure if we're going to revise our offer at this stage or maybe wait until we have gone for another viewing to agree what fixtures and fittings are being left and any snagging list items to be fixed and deal with it all then?

The misrep point is an interesting one. Trading Standards actually advised me to quote the Misrep Act s 2 (1) if I initiated a complaint with Connells. I would say that they misrepresented the true nature of the financial incentive by witholding all the details to encourage me to accept the structure of the offer.

BitterAndTwisted

Eh, wait until you get the results of your survey back. I'm sure there will be plenty of potential to claw that grand back. And more

jonewer

This is why no one should ever EVER EVAR buy a house through Connells.

xyellowx

connells - by me demmanded i see there inhouse mortgage advisor or couldnt view the property, i went and knocked the door told vendor first she knew about this so she phoned them, "they had suggested i see there mortgage advisor was the reply" liars.

they then told me the property had planning permission but when i checked with counsil it had lapsed as no work had been started within 5 years, connells told me to come down the shop and showed me some drawings which had been made 7 years ago for a small building "look heres the drawings its got planning permission" when i said it had lapsed they said there was no such rule

they are clueless

betmunch

DaisychainK wrote: »

The misrep point is an interesting one. Trading Standards actually advised me to quote the Misrep Act s 2 (1) if I initiated a complaint with Connells. I would say that they misrepresented the true nature of the financial incentive by witholding all the details to encourage me to accept the structure of the offer.

Ah yes, sorry, showing my lack of knowledge of mis-representation by being to quick to bash Connells.

Of course they mis reporesented the nature of the incentive by not telling you that you had to use their services until after you had initiated your own enquiries.

If the property is THAT good I would suggest you get it (with your own broker and solicitors) then once your name is on the deeds go back to connells with the complaint and try and sort it out then.

You may not get anything back, but if the house is that good, is it worth losing it over a grand? Which, as we have shown, you will get back by using better services.