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Is action against estate agents possible? What wd you do?
florence4
Posts: 129 Forumite
I am in the middle of negotiations to buy a house, and it appears that the EAs have misled me, so I am trying to work out what to do. Any advice would be welcome... This is long, so thanks in advance to anyone who makes it to the end! 
The basic facts are these:
I am chain-free with mortgage in place and ready to go...
I made an offer on a house at 10% below asking price on Sunday. I followed my phone offer with a confirmation email.
On Mon morning I received a call from the EAs telling me other bidders had also submitted a 'similar' offer over the weekend and the vendor was considering his position, and that they'd get back to me. They confirmed to me over the phone that the other bidders were also 'proceedable'. I was able to confirm through word-of-mouth (we live in the same area as the vendor) that there had indeed been another offer, but not what it was.
I spoke to my broker and at noon on Mon increased my offer by approx 5%. I gave them my broker's contact details, as requested, to confirm my position. (They didn't).
On Monday evening I came home to an answer-phone message from the EA saying that the vendor had not made up his mind, confirming details. The exact words were "Both yourself and the other purchaser are at exactly the same stage, so whether you want to make a slight increased offer to give yourself an advantage is up to you". (I have this recorded).
On Tuesday morning, I called to confirm details and was told this time that the other bidders had made a slightly increased offer. again that "the other bidder is in a position to proceed, has nothing to sell and has made a higher offer" (not recorded). I did some sums and around lunchtime called back with an offer just £2k under asking price.
Just before 4:30pm on Tuesday, the EA called to say the vendor had accepted my offer. I informed my broker, instructed my solicitor, and told my children and friends.
At around 11:30am yesterday (Weds) I missed a call from the EA. I called back, and was told that the other bidders had made an increased offer and that the vendor was 'minded' to accept it. I told them of course how annoyed I was, and that I felt misled, and pointed out that they had had the option to tell me the vendor was still considering, but had told me he had accepted my offer. They basically blamed the vendor and implied he had changed his mind. I again stressed my strong position, and asked again whether the other bidders also proceedable. This time, they said they had not yet got confirmation of finances, but expected to receive them by the end of the day. I told them how cross I was about this, and said there was no way I would even consider an increased offer until this confirmation was received.
Last night I came home to an answer-phone message telling me they have not got confirmation from the other bidders. The exact words (recorded) are "I haven't as yet received any proof of funding from the other offer we have".
I'm spitting mad. My issue (as you'll probably have realised by now) is that the EAs misrepresented the position of the other bidders. I would not have increased my offer if they had not told me that they were proceedable and "at exactly the same stage" as me. By misleading me (and probably the other party too) they have effectively, artificially, bumped the price of the house up by 6-7%. Even if I continue in these negotiations, and even if I drop my bid again, the vendor can't 'unknow' what I am prepared to pay.
Is there anything I can do? What would people recommend? Options I can think of include:
- Reporting the EA to the OFT for breaching the Estate Agents Act 1979... But is it worth it?
- Calling the branch manager and outlining my complaint. Asking them to explain why they told me on Monday that the other bidders were proceedable.
- Insisting on written confirmation (cc-ed to my solicitor?) of any increased offer before I make any further decision.
- Dropping my offer and writing to the vendor to explain why.
- Popping round to speak to the vendor. (I don't know him/them well, but we have mutual friends).
- Pulling out.
- Continuing and if I succeed in buying the property at the increased cost, suing - or more realistically taking the EAs to the small claims court - to recover some of the difference...
Has anyone been in this situation before? Does anyone have any advice?
Thanks
The basic facts are these:
I am chain-free with mortgage in place and ready to go...
I made an offer on a house at 10% below asking price on Sunday. I followed my phone offer with a confirmation email.
On Mon morning I received a call from the EAs telling me other bidders had also submitted a 'similar' offer over the weekend and the vendor was considering his position, and that they'd get back to me. They confirmed to me over the phone that the other bidders were also 'proceedable'. I was able to confirm through word-of-mouth (we live in the same area as the vendor) that there had indeed been another offer, but not what it was.
I spoke to my broker and at noon on Mon increased my offer by approx 5%. I gave them my broker's contact details, as requested, to confirm my position. (They didn't).
On Monday evening I came home to an answer-phone message from the EA saying that the vendor had not made up his mind, confirming details. The exact words were "Both yourself and the other purchaser are at exactly the same stage, so whether you want to make a slight increased offer to give yourself an advantage is up to you". (I have this recorded).
On Tuesday morning, I called to confirm details and was told this time that the other bidders had made a slightly increased offer. again that "the other bidder is in a position to proceed, has nothing to sell and has made a higher offer" (not recorded). I did some sums and around lunchtime called back with an offer just £2k under asking price.
Just before 4:30pm on Tuesday, the EA called to say the vendor had accepted my offer. I informed my broker, instructed my solicitor, and told my children and friends.
At around 11:30am yesterday (Weds) I missed a call from the EA. I called back, and was told that the other bidders had made an increased offer and that the vendor was 'minded' to accept it. I told them of course how annoyed I was, and that I felt misled, and pointed out that they had had the option to tell me the vendor was still considering, but had told me he had accepted my offer. They basically blamed the vendor and implied he had changed his mind. I again stressed my strong position, and asked again whether the other bidders also proceedable. This time, they said they had not yet got confirmation of finances, but expected to receive them by the end of the day. I told them how cross I was about this, and said there was no way I would even consider an increased offer until this confirmation was received.
Last night I came home to an answer-phone message telling me they have not got confirmation from the other bidders. The exact words (recorded) are "I haven't as yet received any proof of funding from the other offer we have".
I'm spitting mad. My issue (as you'll probably have realised by now) is that the EAs misrepresented the position of the other bidders. I would not have increased my offer if they had not told me that they were proceedable and "at exactly the same stage" as me. By misleading me (and probably the other party too) they have effectively, artificially, bumped the price of the house up by 6-7%. Even if I continue in these negotiations, and even if I drop my bid again, the vendor can't 'unknow' what I am prepared to pay.
Is there anything I can do? What would people recommend? Options I can think of include:
- Reporting the EA to the OFT for breaching the Estate Agents Act 1979... But is it worth it?
- Calling the branch manager and outlining my complaint. Asking them to explain why they told me on Monday that the other bidders were proceedable.
- Insisting on written confirmation (cc-ed to my solicitor?) of any increased offer before I make any further decision.
- Dropping my offer and writing to the vendor to explain why.
- Popping round to speak to the vendor. (I don't know him/them well, but we have mutual friends).
- Pulling out.
- Continuing and if I succeed in buying the property at the increased cost, suing - or more realistically taking the EAs to the small claims court - to recover some of the difference...
Has anyone been in this situation before? Does anyone have any advice?
Thanks
0
Comments
-
The EA is working on behalf of his client (the vendor).
Offer what you think the place is worth and you either get it or not.0 -
it sound like the EA hedged their bets with the information they gave you, so they weren't strictly lying to you.
As ILW says, either sh*t or get off the pot...
it isn't nice, but it sounds like your vendor (and/or the EA) is a PITA anyway. Even if they did now accept your offer, would you trust them not to gazump at later date?0 -
Personally I'd walk away. Sounds to me like the EA is either playing you or they are just incompetent.
You might be upset but you will get over it when another house comes along.
I would think carefully about complaining as if you find another house with this EA you do not want to have burnt any bridges with them. Depends how popular/big this particular EA are.0 -
Wow. The Estate Agents Act 1979 requires an EA "to represent offers and prospective purchasers honestly, i.e. not to misrepresent the details/existence of any offer or the existence/status of any purchaser".
http://www.oft.gov.uk/business-advice/estate-agents/estate-agent-complaints
No wonder EAs seem to get away with such bad behaviour, if people just accept it. I'm not sure I'm prepared to, whether or not I proceed.
I would probably just assume that the vendor was a PITA, except that we have mutual friends who assure me he is a decent bloke and would probably be horrified... Which is why I'm tempted to go and see him...0 -
You are worried that you have lost out and that is colouring your view.
1: Up your offer; have a survey and find reasons to lower the price.
Think it through
-The EA may have confirmation of say £100k- you agreed £102.
-Loser offers £105K,vendor is enticed
-EA asks for confirmation of £100 + £5k
-EA advises you of higher offer
Thereby giving you the chance to retain the purchase.
2: Respond and say
"we're sticking at £102, but if the loser confirms their finance calls us before the vendor pulls out"
There is no breach of the Act its not a pleasant process hence my suggestion of 1 above.Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
Actively hunting down the person who invented the imaginary tenure, "share freehold"; if you can show me one I will produce my daughter's unicorn0 -
That's a good point braun. Thanks.
and that is exactly why it isn't worth the bother to complain about relatively minor ethical aberrations by EAs...
I doubt the vendor will be complaining too much about these antics - even if you are assured he is a 'decent bloke', would he turn his nose up at an extra 6-7% ?
As posted above, play the game and renegotiate after the survey0 -
Drop your offer, tell them it's only on the table for x days then be prepared to walk away
Look, people are @ssholes. When I was selling my house, we accepted an offer, then after 6 weeks, the sale fell through. I found a new buyer, but even when they matched that previous offer; I still pushed them for another £2k. Why? Because I could; and we needed as much capital as we could get. Little did they know, but if they hadn't found that £2k, we still would have accepted their offer as we were desperate to move.
We also ended up in a position where someone accepted our offer, then 2 days later came back and said someone else had offered higher - they then forced us into a blind bid-by-email. Lost the house. We even out-bid someone by £10k at one point and we still didn't get the house.
Buying and selling a house is a game of poker. Hold your nerve. We eventually did get a new home!0 -
propertyman wrote: »You are worried that you have lost out and that is colouring your view.
Yes, you may be right
1: Up your offer; have a survey and find reasons to lower the price.
Think it through
-The EA may have confirmation of say £100k- you agreed £102.
-Loser offers £105K,vendor is enticed
-EA asks for confirmation of £100 + £5k
-EA advises you of higher offer
Thereby giving you the chance to retain the purchase.
[COLOR="rgb(153, 50, 204)"]
I don't follow this bit propertyman - sorry if I'm being slow! Can you talk me through it againplease?[/COLOR]
2: Respond and say
"we're sticking at £102, but if the loser confirms their finance calls us before the vendor pulls out"
[COLOR="rgb(153, 50, 204)"]That is what I have currently said (if I'm understanding you right - do you mean before the vendor makes up his mind?).[/COLOR]
There is no breach of the Act its not a pleasant process hence my suggestion of 1 above.
Do people really commonly re-negotiate after survey? When I started out, various people on this board and elsewhere assured me it was a risk tactic, and it seems pretty shabby to me!
It's a horrible business! I'm not made for it, which is why I haven't moved house for 20+ years!0 -
(Dunno what happened with the text highlights there - sorry!)0
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