Conflict of Interests?

Mrsmags

Hi we have had an offer accepted on a property, after a little bartering, at 3k under the asking price, so not a massive amount less in the current climate! We instructed an independant mortgage advisor to help us find a mortgage, which he has and we have been happy with work completed to date.

Our survey came back to our independant mortgage advisor today, and the first person he contacted was the vendors estate agent, whom he knows due to various dealings in the past. Not only did he tell the estate agent the result of the survey (that the building society would be holding some money back pending further works) but also how much they had valued the property at and were willing to lend us. He has also contacted us to inform us of this following the call to the estate agent. We then made the call to the estate agent to advise we would be instructing a survey with regards to the works (which amounts to damp proofing due to evidence of rising damp) and our offer will be amended to reflect the cost of works to be completed. However because of the mortgage advisors call he already knew how much the building society were willing to lend us, which then put us on the back foot, arguing that they had already substantially reduced their asking price (3k hardly substantial) and that the vendor would not go below the value the surveyors had put on it, even should the cost of the works exceed the diference. We are not happy that he had this information, as this has put us on the back foot of the estate agent then telling us how much the vendor would come down, surely we tell them subject to quotations how much we are now offering?? I should add that I myself am a surveyor in the construction industry and have a good idea what the quotes will come in at.

Am I making a mountain out of a mole hill here? Is it standard practice for the mortgage advisor working for us to let the estate agent most certainly not working for us, in on the valuation? or has there as we feel been a serious conflict of interest? Aside from the fact our offer was subject to survey, ie would be lowered to reflect any work found.

Thanks in advance

hcb42

I don't blame the vendor, the valuation represents the value given condition, there is always work to be done with any house. If you want the house carry on with the purchase. If you thought you could negotiate based on survey it is not unreasonable to show them the survey.

Ivana_Tinkle

That's pretty shocking. Sounds like you've been well and truly stitched up. Unless the house is unique and you've fallen in love with it, I don't see how you could proceed with the purchase. (And you certainly can't continue with this mortgage advisor - I'd be complaining to anyone who'll listen in the strongest possible terms!)

Mrsmags

I accept showing the survey is necessary for negotiation, however we did not give permission for him to do this before we had seen or heard the contents. Nor did we give him permission to tell us how much the building society would lend us. I expect that the work will cost more than the difference between valuation and offer, we did not expect any issues with the survey so did not look at this as another bargaining tool. The mortgage offer is subject to surveys of the work to be carried out at our expense beforehand. However if this is normal thats fine but I didn't like the fact that the estate agent was dictating to us as to what we would offer beforehand. We have agreed that should this cost more than our original offer we will be willing to walk away as that was how much we were willing to pay, already aware that we would have to spend money on other areas of the property and budgeting for that.

The_J

That is very unprofessional, I can't believe he would call the estate agents although if they called him I could understand if he was a total moron.

kingstreet

Under no circumstances should an adviser acting for you disclose information to any other party without your consent.

ACG

Your advisor should be acting on your behalf not the EA. Sounds like a bit of a fool.

Yorkie1

kingstreet wrote: »

Under no circumstances should an adviser acting for you disclose information to any other party without your consent.

I completely agree.

I'd be considering a formal complaint to him and to his professional body.

Mrsmags

Thanks for the replies at least we won't feel our complaint is unfounded when we get hold of him today.

Dave_Ham

Sounds like your broker is a clown, I actually try to avoid speaking to Estate Agents as much as possible let alone try and call them up (only kidding!!!)

Seriously - this is not good. Whilst I think the survey would have almost definitely have been shared which would have the "valuation" on - your circumstances are your circumstances and as a broker myself what they have done is stupidity at best or grossly negligent at worst.

Unusual for a surveyor to underestimate the value of works though, typically it is the other way around..

I wish you well - let us know how you get on...

Be mindful, that to save costs you may need to use this broker again on this or a new place so maybe save any formal complaints until later...