Is the agent being illegal???

Rick62

It almost certainly is illegal to say the offer will not be passed on. What is your problem?

real1314

thesaint wrote: »

They are not acting 'illegally' whether the vendor has specified this condition is doubtful.

Is it possible to go and see the vendor directly?

They are acting illegally UNLESS the vendor has specified this condition (that only offers from people who have seen the EAs Mortgage Advisor).

I think this is the same as you are saying, but with a different emphasis.

thesaint

I will have one last attempt to explain. I will set a scenario for those who don't understand.

Scene 1

thesaint is a vendor who is clueless(obviously) that wants his house up for sale. thesaint approaches 'Dodgy estate agents' and asks them to market his house.

thesaint: Morning sir, can you sell my house?
dodgy salesman: That's what we do, 3% is the fee.

the saint although thick, knows he can do better

thesaint: Come on guv'nor, sort me out.
dodgy salesman: Let's do a deal, you sign this piece of paper that states that all prospective purchasers must 1st see our in house advisers.
thesaint: What's in it for me?
dodgy salesman: 1% instead of 3%.

thesaint is none to clever with figures, but even he knows that he is saving a packet.

thesaint: You're on.
dodgy salesman: Sign here.

Now, would this be illegal?

I am not saying that this would ever happen, estate agents are as honest as honest gets, but would "Dodgy salesman" be acting illegally?

Would he legally have to put all offers in writing, or can the vendor 'Opt out'?

lynzpower

As youve seen, Vendors can make the decision as to whether to OPT OUT of recieving the offers, but it HAS TO BE IN WRITING.

I expect you are right in that vendors can opt out of recieving low offers, and the olegislation doesnt EXPLICITLY state that they cant opt out of recieving ALL offers- maybe they can.

BUT its fair to deduce that any vendor wishing to not recieve the offers, NEEDS TO PUT THIER REQUEST IN WRITING.

Thus for all moneysavers who have had thier offers rebuffed it may well be because the vendor has opted out of recieving those- HOWEVER it seems that the vendor has to put his request in WRITING to the EA.

For moneysavers then, if your offer is NOT being put to the vendor, it might be an idea to ask the EA to see a COPY of this request in writing to ensure that they are not being led a merry dance by an EA wanting to up thier commission which lets face it, we all know some in our number do do. ( and need to do as thier basic is so low- in fact the very reason why I packed it in!)

Rick62

Thesaint, now I understand what you are asking and it is a very good question. I think it would be unethical and against any FSA principles, but... Anyone know?

thesaint

I have said all along that the OP should try and see the vendor directly, because no one knows what the vendor has specified, and speaking to the vendor does away with any 'misunderstanding;) ' that 'Dodgy Estate agency' has with regard to their obligations.

lynzpower

Rick62 wrote: »

Thesaint, now I understand what you are asking and it is a very good question. I think it would be unethical and against any FSA principles, but... Anyone know?

IME, if a vendor came to me and said this, I would reply, but what about people who dont require a mortgage - ie 100% cash investors etc? Would you want me to reject thier offer? in any case this HAS to be in writing, at the least so the EA can show this to irate buyers in this scenario.

As I understand it a vendor can refuse whtever they want. if they dont want gay people, famiies, people with dogs whoever, they can make the decision and the EA then has to act on it. ( and get yet more abuse for simply doing thier job :rolleyes:)

Suffice to say tho Ive never heard of anyone rejecting the offer as they havent been advised by an inhouse mortgage advisor. has anyone here?

I can quite easily understand why a vendor might REJECT an offer where a mortgage hasnt been agreed, indeed as an EA you would recommend that, however if a mortgage HAS been agreed, back to my original point that a quick call from the broker should suffice.

AndrewSmith

It would be not only illegal but also would fall into a very grey area within the bounds of FSA financial promotions, with the EA maybe being seen as attemption to make an unsolicited financial services sale. Purchasers MUST be given the choice whether they want to see the in-house adviser, not have it made a condition of an offer. This practice IS a breach of the EA act.

The only variation on the EA act making it legal for an agent not to pass on an offer is if the Vendor stipulates in writing that they do not wish to receive offers below a certain price.

The Vendor or Estate Agent cannot make the passing of an offer conditional on seeing their in-house mortgage broker.

AndrewSmith

thesaint wrote: »

You seem to be having a go at Andrew over this point- am I right.
No you are wrong, I questioned the information given by him/her.

As it is your perogative to clarify anything you do not understand, however having over 8 years prior experience as a Financial Services Manager/Director in estate agency I know that I am correct. By your own admittance you have very little experience of estate agency dealings, however I respect you opinion right or wrong.

You now say it's not illegal (according to the OFT), AndrewSmith is still stating it is(According to the government).

No I am saying nothing, merely quoting from the government information website direct.gov

tomstickland

Well, a practical solution is to say yes to the EA about the mortgage consultant but then don't take the MC offers any further.