Help - Making an offer but Estate Agent won't put it through

jimmybrowning

Hi,

There is a girl in my office who is a first time buyer. She has been to see a financial advisor and has a mortgage in principle (with a document to prove this due in the post).

Yesterday she went to see a house with her boyfriend. They like it and she has put an offer into the Estate Agent this morning. The EA has said that they are not going to put this offer through to the seller as she needs to see their mortgage advisor to ensure she can afford the mortgage!

This sounds way out of line to me. If I was the seller and found out my EA was screening offers (so that each buyer had to see the EA's mortgage advisor) I would be livid.

Is there any way she can find out the owner of the property and go to him direct (ie. the Land Registry website).

Or can anyone offer any advice for her?

Thanks in advance,

Jimmy

brock-cruse

Hi
I am sure the agent is just not allowed to do this! I am in the same position. Agent phoned me to say that i had received a good offer but that they did not know the ftb finances. They got their financial adviser to chat with her over the phone, he said if what she said was true then there should be no problem and she has made an appointment to see him next week. I have accepted offer providing her finances check out and after the results of the survey are known and she has definitive offer then the house will be taken off market (not doing viewings but still want it advertised and any interest noted just in case...long story!!). But your friend has a DIP already. If i was her i would call round at the house and tell the vendors what the agent is doing as if i was them i would not be happy!

AndrewSmith

They are in breach of the Estate Agency Act by not putting this offer forward as they are not allowed to withold offers on the basis of not having spoken to their mortgage adviser.

saxy1

Agree with Andrewsmith.

There was a similar thread a while back -

http://forums.moneysavingexpert.com/showthread.html?t=428519&highlight=estate+agents

Amitoocautious

Why dont you arrange another viewing on the house and put the offer forward direct to the vendor. Telling them what the EA is up to

dnwilliams

EA’s have a duty to put forward offers to sellers as a properly researched package. It is impossible to advise them when they do not have accurate information about a buyers financial ability. However, as already mentioned agents are legally bound to put forward offers and at the very least should make the seller aware of your interest but advise that they have not been able to establish your financial position. However what’s to stop them speaking with your FA? The likely situation is that they are a corporate EA, where selling houses is purely a means to selling their financial services products and as such what they are asking is a perfect excuse to do just this.

prutter

If I was the girl in your office, I'd tell the EA that you're sorry they wont put the offer forward, but instead will be knocking at the vendors door, with your agreement in principle in your hand, and placing the offer to them direct.

I would guess this would have the desired affect, as I doubt the agent would want the vendors to know they're screening offers (potentially losing them a sale) to try to get more people into their mortgage advisor.

jimmybrowning

Thanks to everyone who posted.

Just to follow up on this. She phoned the EA back armed with some of the info provided. The EA rapidly backtracked and said they'd put the offer in.

She followed up the following morning. The EA ummed & arrhhed and promised to follow up immediately.

A short while later she got a phone call back from the EA saying the offer had been accepted - £5k under the asking price as well!

BaldySmurf

Excellent

An EA tried this on with me once stating it was some sort of "financial lending regulation" that required us to be checked out by their FA (although we'd had an AIP already from an IFA). However, they did still put the offer forward to the seller.

Their FA called the next day and I let it go to voicemail. I conveniently forgot to call him back, and never heard from him again. The progression of the house sale still went forward, although later fell through.

Worried

Bairstow Eves. Is it? Is it?

sarmia

I work for a Commercial Agents specialising in Licensed Property but have worked in Residential in the past. All offers no matter how low have to be by law put into writing to the vendor, if this is not done then the matter could be taken forward.

In all sales (and my own purchases) I have dealt with the solicitor is the only party to require proof of mortgage and not a EA, maybe it is different in different areas as quite I believe quite frankly it has nothing to do with the EA. It is more likely that the girl is on commission on not just sales but mortgage commissions too and that is why she is trying to direct your friend the MA to make some more money for herself.