Legal requirement for estate agent to tell vendor about buyer's mortgage?

Propertyfan

We had a similar situation when selling last year - our buyer lied about his position; our agent found out but decided not to tell us (in our case, we suspect because the agents within the branch were competing for their commission - she wanted us to sell to "her" buyer, even if that involved huge delays and problems for us). So stressful and horrible - I really feel for you. In fact, I can feel the anger building up again just thinking about it now!

My only advice is to find a new agency. This one has lost the chance to get any commission out of you and they'll care far more about that than any complaint!

Thanks for sharing your own experience. It's a real learning curve selling a property, isn' it? You learn as you go through the process but it can be at an emotional and financial cost. The only positive out of this is you learn from your bad experiences. You'll know what to be aware of in the future. Don't assume the EA is telling you the complete truth, she/he may be withholding certain information, and keep your guard up at all times.

Yorkie1

OP, you quote "the buyer is chain free" in a post above. This does not mean that they don't need a mortgage; it means that they don't have to sell a property at the same time as buying yours.

I do not believe that the Act has been breached.

However I do agree that the EA should have kept you properly informed once they became aware of the buyer's position, and that a complaint is merited.

I think your plan to have the buyer's mortgage details provided to you may backfire, depending on what you precisely mean by that plan. It is not usual for a buyer to provide the specific mortgage details to a seller or the EA. And many buyers think the term 'cash buyer' means that they don't have a property to sell ... so misunderstandings can still arise.

Propertyfan

OP, you quote "the buyer is chain free" in a post above. This does not mean that they don't need a mortgage; it means that they don't have to sell a property at the same time as buying yours.

I do not believe that the Act has been breached.

However I do agree that the EA should have kept you properly informed once they became aware of the buyer's position, and that a complaint is merited.

I think your plan to have the buyer's mortgage details provided to you may backfire, depending on what you precisely mean by that plan. It is not usual for a buyer to provide the specific mortgage details to a seller or the EA. And many buyers think the term 'cash buyer' means that they don't have a property to sell ... so misunderstandings can still arise.

What I mean is.... if I get a new buyer I will ask or insist that the EA put down in writing:

The buyer is purchasing the property without a mortgage.

or

The buyer requires a mortgage to purchase the property.

I will insist this is put down in writing so I know where I stand. As I mentioned, the agent told me "the buyer has the cash, doesn't need a mortgage."

She can deny she ever said that because I have no recorded tape or MP3 audio file of her saying that. It didn't cross my mind to record my conversations with the EA when she visited my house and told me the buyer doesn't need a mortgage. However, based on all the grief I've gone through I will insist (in polite words) that I must have the buyer's mortgage status put down in a letter or on the sales memorandum. If there is a dispute I can show the letter as clear evidence.