Surveyors backed out due to conflict of interest?

Zman786

Nationwide instructed Countrywide to do a valuation. Ive been following up since Tuesday to try and get a date, and when I called them today they said theyre referring me back to nw due to conflict of interest. What does this mean?

Have I dodged a bullet or will this take even longer now as cw may have been more available? Should I double check with nw tomorrow?

ValHaller

Countrywide must be somehow involved in your deal. If they are your vendor's agent for example, they could theoretically overlook problems with the property to make sure that the deal went ahead. So one interest is to do a good and proper survey for the lender and another interest is to do a cursory job to avoid jeopardising the sale. This is a conflict of interest. And it is to be expected that they would withdraw. Apart from the loss of time, this for you is now a resolved problem.

dominoman

Sorry to jump in on this thread but we have a similar issue.

We are buying a house through Mann Countrywide and our mortgage company appointed Countrywide to do the survey. Is this a conflict of interest?

I am unhappy with the valuation survey as I think he artificially boosted the valuation despite no comparables and subsidence on the house.

GMS

If there is subsidence then the lender will almost certainly not want to lend on the property.

Also consider carefully if you want to proceed with this. Insurance will be harder to obtain for instance.

bigadaj

dominoman wrote: »

Sorry to jump in on this thread but we have a similar issue.

We are buying a house through Mann Countrywide and our mortgage company appointed Countrywide to do the survey. Is this a conflict of interest?

I am unhappy with the valuation survey as I think he artificially boosted the valuation despite no comparables and subsidence on the house.

On the OPs post I was going to say that the conflict would be relatively unimportant, and they should have Chinese walls in place in such cases. If you really believe there is a conflict then speak to your lender and see if they will arrange for another survey, they might well be ab,e to claim the cost or not pay countryside for the original survey.

I'd pay for my own independent survey in your position, surveyors tend to be conservative in valuation generally so it could save you some money.

ValHaller

bigadaj wrote: »

On the OPs post I was going to say that the conflict would be relatively unimportant, and they should have Chinese walls in place in such cases.

Chinese walls. You can get the tooth fairy to repoint Chinese Walls.

kingstreet

I thought it was fairly routine these days for Countrywide surveyors to inspect Countrywide agents' sales for lenders' mortgage reports & valuations?

ValHaller

kingstreet wrote: »

I thought it was fairly routine these days for Countrywide surveyors to inspect Countrywide agents' sales for lenders' mortgage reports & valuations?

I wish I was telling you to get your tongue out of your cheek. If lenders don't get a grip on this, then it will probably turn out to be the next scandal.

kingstreet

TBH I thought there was a convention (a few years ago, admittedly) that a surveyor linked to the selling agent did not do the valuations on that agent's properties, but the link between Nationwide and Countrywide would appear to suggest that is no longer the case.

Niowrtt

kingstreet wrote: »

I thought it was fairly routine these days for Countrywide surveyors to inspect Countrywide agents' sales for lenders' mortgage reports & valuations?

I would say yes and am very surprised but pleased that the OP has had such an honest surveyor from Countrywide. Dodged a bullet is indeed appropriate.

Despite their written assurances to me, I found that there are serious issues with conflict of interest.

In my naivety, I was selling through Countrywide, buying through Countrywide, getting a mortgage brokered through Countrywide, and the purchase was surveyed through Countrywide.

The surveyor overvalued the property (up for £140k, offered and accepted at £130k, valuation at £160k, eventually sold for £125k).

The broker used this valuation to add the £30k difference in eventual equity to my deposit, changing my 10% into 27%, and got a mortgage offer at a hugely better rate (from 7.5% to 4.5%). Work that out: I suspect if not actual fraud then very dodgy.

The purchase fell through which in hindsight I am thankful for.

kingstreet

Niowrtt wrote: »

In my naivety, I was selling through Countrywide, buying through Countrywide, getting a mortgage brokered through Countrywide, and the purchase was surveyed through Countrywide

This ^^^ requires a simple "face-palm" image;-

https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcRzGi5oG0uLBzwYSt7v-IinwDjmx6qh0f8ay0p_uX22_WTMe3Hl

the rest is covered by;-

:eek: