Advice Please - Is this Fraud?

Jebu

I would welcome some advice from the forum and any experts in this matter.

My mum lives on the south west coast now but has a house in Yorkshire. She wants to sell her house as she is retirement age and she of course has my full blessing. I offered to put the house on market and manage it for her but she was adamant that she wanted to use a "quick sale" company.

This company (I won't name) came to value the house and they agreed on £84k cash, even though I know the house is worth £100k+ my mum didn't want the hassle so she accepted. The way it is supposed to work is that the quick sale company find a "quick buyer" for what I assume will be more money and they therefore make their profit.

I have no issues with companies doing this as it is their business model and in exchange for convenience and quick sale they give a lower price and make their margin.

However, unbeknown to the agent the person who wanted to buy the house off them was in fact my sisters friend. She rang my sister and said they had an offer of £105k agreed. At such point I toyed with the idea of sacking off the middleman and getting my mum to sell direct but once again she didn't want the hassle.

Today - She had a phone call from the agent who said they couldn't find any buyers/investors would pay more than £84k and therefore they had to reduce their offer to £73k for the house. They clearly didn't know that we know someone has offered £105k and had it accepted.

Now this is clearly misrepresentation of the sale process to try get my mother to accept a lower offer and they can make £11k more profit. My mum is getting older and had she not known better would feel like she had to take the lower offer. As it was she gave them full barrels and they backtracked and honoured the £84k. Now if it was me I would have pulled right out of the deal with the agent but once again my Mum has decided she just wants to stick with it and get the £84k.

As a compromise she has said I can write a letter of complaint to the head office of this company once the deal is done as she is nervous, despite me reassuring her, that any communication now might put an halt on the £84k.

So... my question is... Is this even legal and how many other people have they managed to get more money out of using similar tactics? It looks like fraud to me but I am no legal expert and I don't want to say this in a letter and potentially make myself liable for slander. However, I do want to word my complain letter as strongly as possibly and after stating the facts I plan on asking for a full explanation and if wrongdoing was found to be re-compensated for the distress my family has been put through. If I don't get any response I will tell them that I will pass all the details onto a third party (watch dog? police? press?).

What do you think?

anselld

Normal practice for these companies Im afraid. Your mum had free choice and decided to go down that route. She could just as easily have instruced a normal agent and "priced to sell" but she chose not to.

It seems she has now stood her ground and is happy with the deal so does not have any complaint. No point in you making one on her behalf.

freeisgood

This is unfortunately common place, many estate agents do it, and "we buy any house" companies do it always, it is how they work(con people).

kinger101

You need to convince you mum to walk away from this. Regular estate agents can sell houses quickly too. Writing a letter to the head office won't do anything other than get the guy promoted for being an exemplary scumbag.

Jebu

Wow. Very depressing responses. I can fully understand these companies making money but blatant lying to increase their margins? That's legal and accepted practice?

How depressing.

PasturesNew

Jebu wrote: »

.... use a "quick sale" company.... agreed on £84k cash, .... unbeknown ... person who wanted to buy ... my sisters friend.... offer of £105k agreed.

Today - She had a phone call from the agent who said they couldn't find any buyers/investors would pay more than £84k and therefore they had to reduce their offer to £73k for the house.

See below:

anselld wrote: »

Normal practice for these companies

Yes, this is normal for them.

OP, people using "quick sale" need to be in a desperate situation, your mum's just in a "can't be 4rsed/make it easy" situation .... I'd be working with the buyer to find a way for them to buy it direct. You need a solicitor to go over the Quick Sale contract. Although the Shysters don't know you're in touch with the buyer at all .... they WILL probably check the land registry when the sale completes to see if the person who bought it had been on their list of potential buyers in order to issue some random invoice for an "introducer fee".

Jebu

Setting up a private sale was, as noted, my first thought but unfortunately no matter how much I explain this is the best way forward it's not going to happen.

I am surprised companies are allowed to blatantly lie to their customers. In the T&Cs it states they will provide "immediate and honest" feedback if any bids are made on their house... What happened is as far from immediate and honest as possible.

That said - I thank you all for your responses, no matter how depressing.

giddypenguin

I wonder why she is so adamant - I wonder if their sales people have worked their 'magic' on her. Could it be worth her visiting you for a week and getting away from the situation - while convincing her that the usual sale process won't be as bad as she fears?

dancingfairy

It is highly likely that on the day of exchange their 'buyer' will pull out/not be in a good position etc etc and that they can only offer x amount (a lot lower). At this point she is likely to have sorted out new accomodation, organised removals etc It's a really, really common trick with these companies.
As you have a family friend interested you don't need to worry about estate agents commissions etc and may even be a smoother process as you can both chase your solicitors/legal reps to get it though quicker. This would surely be the best bet, she' get the full price and not have to pay estate agent fees. Failing that if she really wants to sell quickly for some reason then an auction with a reserve would be better than using these vultures.
df

stator

I can't believe that people put up with this sort of nonsense.

Yes if they have lied to her then it is likely illegal, but I doubt there is anything you could do about it. I don't suppose you have their lies in writing do you?

Convincing your mother to pull out is the only sensible option. It boggles my mind how some people let themselves be taken advantage of. In your position I would be furious at her, not because she is being irresponsible with her money (her right) but because she is rewarding these dodgey companies for their unethical behaviour.

freeisgood

Jebu, its worth reading some of the "sell your house quick" threads here. There are a fair few.