Offer submitted without consent or instruction by estate agent

cwgfu

Hi,

Very recently, while purchasing a repossessed property, I have had some issues. In a 14 day exchange period, I have held the highest offer until late afternoon on day 13 when I receive a call from the estate agents, informing me someone has bid more than me, but an increase of £500 in my bid would cover it and do I want to increase my offer. On the phone, I said might want to but I was unsure and they shouldn't do anything yet. The following day, exchange day, I receive a few missed calls from the estate agent asking me to call them while in a meeting. My solicitor then rings to inform me that the seller will not complete at the original price because the estate agent has submitted another offer £500 higher than my original. I had provided no written or verbal confirmation that they should act on my behalf at all and I am absolutely furious that they have. Now, to exchange contracts, I have had to pay the extra £500 and push for exchange rather than lose the property.

Apart from complaining to the Property Ombudsman, after complaining to them, and swallowing my pride and letting the seller swallow my £500, does anyone know where I stand with regards to what can be done to rectify this situation? I do feel slightly hard done by and quite stressed as I've waited for this day for a while.

Any thoughts?

Many thanks

G_M

So:

cwgfu wrote: »

..... late afternoon on day 13 when I receive a call from the estate agents, informing me someone has bid more than me, but an increase of £500 in my bid would cover it

.... My solicitor then rings to inform me that the seller will not complete at the original price because the estate agent has submitted another offer £500 higher than my original. (this seems to be in line with what he EA told you above)

I had provided no written or verbal confirmation that they should act on my behalf at all
Do you mean the soliitors? You had got to day 13 without instructing them? Seems strange....

and I am absolutely furious that they have. Now, to exchange contracts, I have had to pay the extra £500 and push for exchange rather than lose the property.
Indeed. You have been outbid by another buyer, by £500, and can either drop out or match their offer and Exchange. This is normal with a repo.

does anyone know where I stand with regards to what can be done to rectify this situation?

Yes: you can either drop out or match their offer and Exchange.

bris

The estate agent hasn't actually done anything wrong, at this point you don't actually have to go through with the exchange so you are in no different a position whether you told them to offer more or not.


By offering the extra £500 it just keeps things on track for you to exchange quickly, but if you don't want to pay the extra £500 tell them not to exchange and you are in no different a position, so either you want it or you don't.

cwgfu

Sorry, I instructed them to submit my best and final offer which was what saw me through the 13 days. The issue I had is that I did not tell them to submit the 2nd higher offer and I was happy to wait and see if the seller would exchange for my original offer, rather than decide to risk starting another 14 day period with a different buyer for an offer less than £500 higher. If the seller came back and asked me to match the offer that was slightly higher than mine, then I could have made the decision to do so.

My issue is the estate agent submitting offers on my behalf without my consent, subsequently pushing my purchase price up.

£500 isn't a dealbreaker, but I didn't ask for it to be put forward.

cwgfu

Also the previous offer had to be made in writing!

fairy_lights

cwgfu wrote: »

My solicitor then rings to inform me that the seller will not complete at the original price because the estate agent has submitted another offer £500 higher than my original. I had provided no written or verbal confirmation that they should act on my behalf at all and I am absolutely furious that they have.

That doesn't mean the estate agent increased your offer though does it? The offer £500 higher than your original may have come from another bidder.

Guest101

Im really confused here, the agent didnt put forward your offer, they put forward a new offer to the seller.

It was higher than yours.

The seller told you to match it. This being a repossession they have to get the highest price possible, so there would not be any sell to save 14 days stuff.

The agent isnt acting for you. In anyway. Nor have they by what you have described.

Landofwood

You agreed to pay the 500 quid when you agreed to pay the 500 quid.

You could have said no but you didn't.

DTDfanBoy

I also suspect you have confused the offer submitted by the estate agent, on behalf of the other prospective purchaser, with the estate agent submitting a higher offer on your behalf.

G_M

Yeah seems to me the increased offer for £500 more was clearly from someone else. EA received a new higher offer from someone else and put it to the seller.

Seller told his solicitor, who told your solitor. You then had a choice.

What makes you think the EA increased your offer by £500? You said

I receive a call from the estate agents, informing me someone has bid more than me, but an increase of £500 in my bid would cover it

cwgfu

I'm not explaining this well.

1) I submit an offer for a property which stands to be accepted for almost two weeks.
2) The estate agent rings on day 13, says another party has made a higher offer than me and that a £500 increase on my part will beat that other offer.
3) I tell the estate agent not to do anything.
4) On day 14, exchange day, my solicitor rings the sellers solicitor, and finds out from them that the estate agent has submitted an offer on my behalf, £500 more than the previous. I did not consent to this submission.
5) The sellers solicitor say they will not exchange for the figure I originally offered as now I had put an extra £500 on the table, and to exchange, that is the price.