Unethical Treatment of estate agent

Nowsthetime_2

Hi

I think I already know the answer but wanted to check with the accumulative brain power of MSE users.

Basically we had an offer accepted on a house we wanted to buy and we were proceeding very well. Our solicitors had received the contract pack and made enquiries, had our mortgage unwritten, home buyers survey booked in and had environmental surveys paid for and reports completed. All in a very short time to meet the time scales of the vendor.

We then had a phone call form the vendors estate agents saying the vendors were now ready to exchange with another buyer and that she had advised the vendor to take the other offer. We were never informed of this other buyer until 2 days before they exchanged. Apparently (unknown to us) the other buyer had previously been taking so long they had put the house back on the market. Overall we were one week away from exchange and well within the times agreed within the offer acceptance paperwork.

I live in Brighton which is a extreme sellers market at the moment, there are about 9 buyers to 1 house and prices have rocketed. Its hellish and everyday you get priced further and further out.

I know that buyers essentially have no legal rights until exchange but I feel as if we were in a contract race without being informed. I have lodged a complaint with the estate agent but they are fairly unhelpful.

My partner is heavily pregnant and I feel the estate agents have acted extremely unethically and possible breaking TPO guidelines - I just want to know if there is anyway I can be a thorn in their side for a bit and hopefully (million to one) we can get them to repay our costs of around £400.

I think the whole system in England needs reshaping as this process leads to honest people being treated terribly without any repercussions to unscrupulous estate agents.

Welcome to the murky underbelly of property!

Any thoughts are welcome......

Prothet_of_Doom

I think you got confused with the words by and of.

Please treat all estate agents Unethically. It is clear they deserve all they get.

Did they treat you unethically ? Well, they may have had instructions from their client, which forbid them from disclosing the details of this. I guess that the vendor was worried that if you knew you were in a race, you'd pull out, and he knew that if the other people knew they were in a race, they'd get on with it.

I don't think you have a standing in law, but I'd send them an invoice for failure to disclose the full facts, and take them to the small claims court, and get your local paper to report on it (oh they won't do that as they might loose the advertising) but hey, I feel your pain.

Bantex_2

Just bear in mind that the EA is working for their client, not any of the potential buyers.

dunstonh

I think the whole system in England needs reshaping as this process leads to honest people being treated terribly without any repercussions to unscrupulous estate agents.

The vendor, who has employed and paid the EA, probably feels the EA has done a very good job and will feel differently to you (who has not employed the estate agent or paid them a penny).

It is normal for a potential buyer to not have their offer taken seriously until they have a buyer for their house. The vendor has a choice on who they sell their house to. The EA does not decide. The vendor does. It may be that the original buyer gazumped you. It maybe that the vendors felt sorry for the original buyer who and picked them over you.

vectistim

Estate agents get a bad name because of things like this, but they appear to have simply done what they were told to by their clients. Agents therefore get a bad name because they essentially mimic the general public.

If I were to question anything, it would be the solicitor - did they know there was already a contract out with another party? Solicitors normally disclose that, and if anyone threatens me with a contract race I walk.

Thrugelmir

If it's National Chain of EA's. Ring head office and have a rant.

Tell them you intend to contact the local paper and have your tale published.

No one likes bad publicity.

At least you'll feel better afterwards.

Dave_Ham

Although I have absolutely no love for Estate Agents, as suggested typically your Solicitor should have been aware of the other contract out there.

Was the solicitor recommended by the Estate Agent by any chance?

TrixA

Nowsthetime wrote: »

I think the whole system in England needs reshaping as this process leads to honest people being treated terribly without any repercussions to unscrupulous estate agents.

I for one agree with you. I come from a country where offers are contractually binding once agreed by both parties and I think the English system is bonkers and in need of urgent reform. I don't think it will happen though because there seems to be a mentality that because things have been this way for a long time, that's the way they'll stay. Honestly, buying or selling a house doesn't need to be this stressful! If you agree, talk to your MP.

PeacefulWaters

TrixA wrote: »

I for one agree with you. I come from a country where offers are contractually binding once agreed by both parties and I think the English system is bonkers and in need of urgent reform. I don't think it will happen though because there seems to be a mentality that because things have been this way for a long time, that's the way they'll stay. Honestly, buying or selling a house doesn't need to be this stressful! If you agree, talk to your MP.

In what ways would you change it?

Most ideas I've heard over the years would create an even worse system.

TrixA

My prior experience is with the New Zealand system, which I personally think is 100 times better than the English system, and all my English friends living in NZ say the same thing.

http://www.workingin-newzealand.com/move/finding-a-house/buying-property-in-new-zealand#.U0UZC8dZUUs

http://www.cowdy.co.nz/overseas-buyers/

The salient feature is that offers are legally binding once agreed in writing by both parties - usually this happens within about a week of making the offer. Offers can either be unconditional or conditional - a conditional offer means there are a specific set of conditions under which the buyer can withdraw from the contract, for example if their mortgage isn't approved, or they are unable to sell their own property. They can't withdraw simply because they change their mind, or because something unforeseen happens. Similarly, the seller can't withdraw simply because someone comes along with a higher offer. So the process is much quicker, and much less stressful for everybody. There's also no such thing as a chain!

The other thing I like in NZ is that houses are commonly sold at auction, meaning that you pay exactly as much as you need to secure the property, and no more. It's a lot more transparent. If you're trying to gain intelligence about the market you can just attend auctions for properties that meet your requirements and see what they sell for.

Honestly I don't think you could design a worse system than the English one if you tried.

kingstreet

TrixA wrote: »

Offers can either be unconditional or conditional - a conditional offer means there are a specific set of conditions under which the buyer can withdraw from the contract, for example if their mortgage isn't approved, or they are unable to sell their own property

Isn't that just a distillation of the English system anyway?

What if someone suffers relationship breakdown, or job loss? Should they be legally obliged to buy? What if the vendor is bereaved, should they be legally obliged to sell?

Every time I see a supposed better system, there are just as many questions posed as there are answers given.

I agree that withdrawal on a whim should not be permitted somehow, but how do you do that without severely restricting one party's freedom, or the contract becomes so "conditional" we end up back where we are...?