Estate Agents In-house mortgage broker causes sale to fall through.

frinny

Hi,

Can anyone advise on this problem?

6 weeks ago we accepted an offer on our house.
The buyers agreed to use the in house broker for their mortgage, which was a buy to let mortgage.
They gave all information and flagged up twice that their deposit was coming from themselves and a business partner.
The broker insisted this was no problem and that they met the criteria. The survey went ahead and was fine. All looked good.
Now, suddenly, the mortgage lender has refused the mortgage on the grounds that the business partner is not a homeowner. (This was known by the broker)
The broker then found a new lender who was happy with the status of the business partner but the early repayment fee is £3500. (The buyers intend to refurb and sell before the fixed fee time is up)

Both ourselves and the buyers are understandably annoyed at the ineptiude of the in house broker.
To add insult to injury the EA then told us that the buyers had asked for a drop in price. (Of £4000...oh what a coincidence!)
The buyers had not done this (we have been in dialogue with them for some time) and are furious that we were told it was them that had requested a drop in price.
It would appear that the EA have realised that the broker totally messed up and thought they could get away with asking us to drop the price so the buyers could accept their brokers mortgage. They even went as far as to suggest that the buyers were likely to withdraw if we did not agree to a price reduction. The buyers have spoken with us to confirm this is untrue and that their original offer has always stood.

Does anyone have any advice on what we should do about the EA? We would like to get out of the sole agency agreement and go with someone else. Do you think that their actions could count as breach of contract. i.e not working in our interest and being dishonest.

Thanks in advance

marlot

Fraud springs to mind for the EA.

I'd get a signed statement from your buyers, then demanding to be released from your contract and reporting them to their governing body.

pleasedelete

If an investor is buying it as a quick turn around do-er upper- why not do it yourself and get the profit?

frinny

Thanks marlot. I am sure the buyers will be more than happy to do this.

I may have trouble with the EA if the buyers find a mortgage through another broker and then proceed. That is their aim at the moment.

Unfortunately, we may lose out on the house we are trying to buy in the meantime. If we can get out of paying the EA, we will feel a bit better.

frinny

If an investor is buying it as a quick turn around do-er upper- why not do it yourself and get the profit?

Yep...would be sensible but it is my partners house and he just wants it shifted. I think he just can't face it and by going in together right now on a new place we save £££s each month on mortgage.