Estate Agent requires Proof of Income and Deposit to take Property off Market?

Gopes

Dear All,

After much house hunting, we have found a house that we really like, and having had a first offer rejected, may be getting close to agreeing a mutually acceptable sale price.

The estate agent has told me that if the offer is accepted, that they will need us to come in to their offices with proof of income and deposit before they take it off the market. He was quite open, in that they wanted to ensure that the buyer was reasonably likely to get a mortgage, etc. and to avoid time-wasters - which seems fair enough.

I appreciate that there is a lot of suspicion as to Estate Agent's practices, but the request doesn't seem unreasonable. Is there anything I should be aware of - or is there a view that I should refuse this?

Cheers
Gopes
P.S. Any warnings about using a solicitor recommended by the EA?

cattie

If you haven't got a Mortgage in Principle then there is nothing wrong with ea asking for proof that you can afford purchase price. However, there is a chance that they will want you to see their own mortgage advisor. Now there is nothing wrong with this, as long as you ensure that any deal they come up with for you really is the best one available on the market to suit your needs.

I'd avoid ea's recommended solicitors as ea gets commission for recommending them & in my experience, they seem to charge top rates for doing your legal work. Shop around for your own solicitor and the fee to compare is the actual legal fee as sometimes this can vary by perhaps £200. See if any friends or collegues can recommend a solicitor they have used.

Darren1977

If you're buying through Stratton and Creber or any Countrywide Assurance Estate Agents. If they suggest Be Legal, then say no!

Our buyers are using them and they are truly appalling.

molerat

Surely it is up to the vendor to decide to take the house off the market and not their agents.

Gopes

Thanks guys.
I have a 'Whole of Market' mortgage broker, and obtained a (expired about 6 months ago - broker advised that there was no point in getting an updated one) AIP from Northern Rock Asset Management.

To be fair to the EA, he didn't explicitly state that they wouldn't take the property off the market without those docs - he just explained that they liked to do this to ensure that the buyer was in a good position, and avoid wasting time for all concerns if that wasn't the case - like I said, it didn't sound unreasonable.

Similarly, he emphasized that it was my choice as to whether to use their solicitor - just that it might make things more eficient as the company would also be representing the vendor (albeit a different lawyer). I could always ask the solicitor whether they paid any referral fee to the EA...

My concern is more that if I am relying on the solicitor to advise me through the buying process, if things are not going well, they might want to advise me to walk away from the deal - if they are affiliated in any way with the EA, this would potentially be a conflict for them. Will hunt around.

Gopes

betmunch

Chances are this is a blag to get you to use their mortgage consultant.

I would suggest you have the figure agreed before you go in, or your literally telling them what you earn, and therefore borrow. Doing this before the offer is accepted damages your negotiating position.

Once the figure is agreed I would go in, see what they have to say, do not use their mortgage advisor unless you want to. Do not be bullied into it!

I suspect you are dealing with a Countrywide, Connells, or Reeds Rains Estate Agent, am I right?

vuvuzela

It doesn't sound unreasonable, but they will likely feed the info back to the vendors and suggest you can afford more than you are wanting to spend (if this is the case). I would definitely think long and hard before providing this.
Any solicitor suggested by the EA will earn them commission and not necessarily be the best for you.

Clearlier

Why not ask your mortgage broker to call them and confirm that you should be able to get a mortgage for the amount that you require?

DRP

betmunch wrote: »

Chances are this is a blag to get you to use their mortgage consultant.

I would suggest you have the figure agreed before you go in, or your literally telling them what you earn, and therefore borrow. Doing this before the offer is accepted damages your negotiating position.

Once the figure is agreed I would go in, see what they have to say, do not use their mortgage advisor unless you want to. Do not be bullied into it!

I suspect you are dealing with a Countrywide, Connells, or Reeds Rains Estate Agent, am I right?

i think the EA told the OP to bring his details when the offer has been accepted.

I can understand the reasoning behind this. An appropriate agreement in principle should be an acceptable alternative to bank details etc...

Gopes

betmunch wrote: »

Chances are this is a blag to get you to use their mortgage consultant.

I would suggest you have the figure agreed before you go in, or your literally telling them what you earn, and therefore borrow. Doing this before the offer is accepted damages your negotiating position.

Once the figure is agreed I would go in, see what they have to say, do not use their mortgage advisor unless you want to. Do not be bullied into it!

I suspect you are dealing with a Countrywide, Connells, or Reeds Rains Estate Agent, am I right?

Actually, it was 'Ward and Partners'. In the end, we decided not to proceed with that property, and have now successfully got an offer accepted on the other property we were interested in.:T

Thanks to all for your comments and suggestions.
Gopes

C_Mababejive

Simply get your solicitor to write to them to affirm that you have access to the necessary funds and confirm your offer direct to the vendor. EAs act in a despicable fashion and it is time we were rid of them. They are mostly parasites.