Cash buyer isn't - EA lied to us!

Mattygroves2

moneyistooshorttomention wrote: »

Its up to the EA to check whether anyone that says they are a cash buyer are really...ie by demanding proof of the amount of cash they say they have/checking up on their present address (ie to see if its up for sale)/etc.

A genuine cashbuyer would be quite happy after all to provide proof they really were telling the truth, as they would want to differentiate themselves from those that were lying.

I disagree. I've been in the position of being a true cash in the bank buyer and wouldn't have taken kindly to the Estate Agent asking to see my bank statements. Fine for the solicitors to discuss early exchange dates but I'd expect the EA to take my word for it.

Annie1960

http://www.tpos.co.uk/downloads/TPOE27-3%20Code%20of%20Practice%20for%20Residential%20Estate%20Agents%20-%20Effective%20from%201%20August%202014.pdf

See para 18d for the definition of cash buyer EAs are supposed to use.

Hoploz

Well Annie I am interested to read that, as I have frequently come across EAs describing people as cash buyers when they are NOT but they may be chain free. I am always therefore sure to ask specifics when these words are uttered.

moneyistooshorttomention

That indeed makes it very clear - ie that the only people who can claim to be cash buyers without cash in hand at the time are those who have Exchanged already on a property they have and will Complete on that property before Exchanging on the one they are buying. Absolute "chapter and verse".

Cant say clearer than that:T

arbrighton

tea-bag wrote: »

We are classed as cash buyers because I don't need a mortgage and not in a chain due to my buyers are FTB we are using the equity from our sale.

RUbbish, you are the middle of a chain.

Cash buyers is what we were- no mortgage, nothing dependent on a sale going through- it is there, in the bank

arbrighton

Mattygroves2 wrote: »

I disagree. I've been in the position of being a true cash in the bank buyer and wouldn't have taken kindly to the Estate Agent asking to see my bank statements. Fine for the solicitors to discuss early exchange dates but I'd expect the EA to take my word for it.

We were cash buyers and i was not happy for the EA to see our statements. WE stated that we would only show them to our sols who could then provide assurances.

Jhoney_2

SuzieSue wrote: »

Some people think that "cash buyer" means that that person does not have to sell a property in order to fund the purchase so it is possible that is what the EA meant.

Which means the EA should have stated an investor or chain free buyer - normally within most EAs vocabulary.

It should not be left to the buyer to interpret the meaning from such a random definition. It is entirely reasonable to assume the words "cash buyer" to mean precisely that, imo.

If the buyers circumstances had materially changed, as it has here, I would have expected at least a call to ask for further instruction on if I wanted to remarket etc to find a more proceedable buyer etc.

The investor probably does a lot of business with them.

Jhoney_2

LisaLou1982 wrote: »

From my EA days, there were a heck of a lot of buyers out there who said they were cash buyers and they werent. This could be anything from outright lies (they thought by saying they were a cash buyer that it would be more in their favour) to buying a house with no mortgage (but needing to sell their house and therefore cash from sale) or genuinely cash, but then changing their mind. There are few genuinely cash in the bank buyers in the grand scheme of things

But don't the EAs usually qualify the person making an offer first? Not 'inhouse MA' etc, but when they take details of the offer they take solicitor, deposit amount, property value/ EA details if applicable, Lender.

Buyer may well have the sum sitting in an account anyway, but have no intention of using it for the purchase. EA however should at least have contacted the vendor - who pays them. That's the issue.

Jhoney_2

Pheobedoglet wrote: »

Yet my eldest daughter got rejected for a flat the other week despite meeting the price the vendor asked for and having her mortgage in principle as a first time buyer all in place, in favour of a cash buyer. She even put a higher offer in, £2k above the other guy but that was rejected too. So it seems they suddenly mean a cash buyer with instantly available funds when it suits them lol!

Yes, when it's not one of their investors on the other end of the buy. Repeat business.... it's the BTL market that keeps them ticking over while we are all busy furnishing and enjoying our homes, I assume. Again, it's not the investors, it's the EA who is shoddy in his client care.

Jhoney_2

tea-bag wrote: »

We are classed as cash buyers because I don't need a mortgage and not in a chain due to my buyers are FTB we are using the equity from our sale.

Have to disagree TB.You need to realise the funds from your sale and there are 3 of you in the chain.