Marketing a property that is sold STC

starsky78

Hello,

I have been trying to sell my property for the last 6 months. I've accepted two offers but both buyers have turned out to be timewasters. The property will now be going back on the market for a third time but, on this occasion, I have instructed my estate agent to carry on marketing the property even if I accept an offer so I have other options should my next accepted offer not be genuine. My estate agent has come back to me to say that it is now a legal requirement that, should an offer be accepted, they are not allowed to undertake any more viewings or accept offers from other prospective buyers. I'd like to think that what the estate agent has told me is correct and that they are not just trying to save themselves time by doing other viewings that may come to nothing because an offer has already been accepted, but I don't trust estate agents. Does anyone know what the law states regarding this issue?

I've done some research and came across this document from the property ombudsman: MSE WON'T ALLOW ME TO POST THE LINK. In it, it clearly states:

"When an offer has been accepted subject to contract (in Scotland, conclusion of missives) you must consult and take the seller’s instructions as to whether the property should be withdrawn from the market, or continue to be marketed. In the latter case, you must so advise the prospective buyer in writing. The prospective buyer must also be
informed in writing should the seller later decide to put the property back on the market. You remain under the legal obligation to pass on offers, as defined in 7a above."

Based on this, it looks like the estate agent is incorrect, although this document is dated August 2011.

starsky78

UPDATE: I have found the 2014 (latest) version from the property ombudsman, which appears to say the same. My estate agent appears to be telling fibs (shock horror).

jee

Why did the two buyers pull out of the purchase? Maybe the property is not being marketed correctly? It could be they are finding things out after searches etc which the estate agent could be upfront about when you accept an offer.

jimpix12

...Is that relevant jee?

The OP is asking if the agents are correct. They are not, although each will have their own policies, but it isn't enshrined in law.

If the agent isn't working for you and you are out of contract I'd switch to another one.

jm2926

In Scotland if you accept an offer the property is off the market. The reference to continuing to market it, would be if the offer wasn't accepted. Your solicitor will not accept an offer and begin work if you tell them you are still open to other offers.

That's why we don't have gazumping in Scotland

fairy_lights

Bear in mind that if you continue to market the property after an offer is accepted, your buyer might think that you're not a serious seller and continue to look elsewhere. It's a two way street.

stator

A lot of estate agents (and other employees in other jobs) get confused with something that is "THE LAW" and what is actually just their own company policy. I would assume it was said in ignorance rather than with malice.


I agree with the above, if a seller refused to take a property off the market I wouldn't go through with a purchase. I would set a deadline instead, say you will take it off the market for 2 weeks for them to get their first survey/valuation done.

Vectis

spunko2010 wrote: »

...Is that relevant jee?...

It's not answering the question (I think the OP has already done that subsequently) but it is relevant with regards to the sale and why two potential buyers have pulled out.

starsky78

Thanks for your input.

This is what is stated in the latest TPOS document:

"When an offer has been accepted subject to contract (in Scotland, subject to conclusion of missives) you must consult and take the seller’s instructions as to whether the property should be withdrawn from the market, or continue to be marketed. In the latter case, you must so advise the prospective buyer in writing. The prospective buyer must also be informed in writing should the seller later decide to put the property back on the market. You remain under the legal obligation to pass on offers, as defined in 9a above."

The estate agent should still be conducting viewings and taking offers even though I have accepted an offer if I had of instructed them to, according to this. As for the solicitor, they will be getting paid regardless so it should be of no consequence to them. At the moment, I've had to pay for two non-completions and the reasons for these non-completions, for the record, have been nothing to do with me. The first buyer asked for some repairs to be undertaken on the outside of the block of flats, which cost me £1500. They were completed and then she withdrew because she found something else. The second buyer has made all kinds of demands, which I have, in part, acquiesced to but still hasn't sorted out the finances after 3 months and time has run out for me. I'm mildly perturbed to think that my property could have still been marketed all this time even though I have accepted an offer. Knowing what I know now, I would have happily accepted a reduced price for another cash, no chain buyer, to avoid dealing with such prats.

jm2926

Ask your solicitor. It's the law society guidelines you need to check

jm2926

http://www.lawscot.org.uk/rules-and-guidance/section-f-guidance-relating-to-particular-types-of-work/division-c-conveyancing/guidance/gazumping,-gazundering-and-closing-dates/

Where a solicitor for a seller has intimated verbally or in writing to the solicitors for a prospective purchaser that their client’s offer is acceptable – whether after a closing date or otherwise – the seller’s solicitor should not accept subsequent instructions from the seller to accept an offer from another party unless and until negotiations with the original offeror have fallen through for bona fide reasons unconnected with the possible offer from another party. The solicitor should advise the seller to instruct another solicitor if he wishes to accept the later offer. ‘Fallen through’ could mean, but is not limited to, an inability for a solicitor to obtain instructions to progress the transaction, failure to purify suspensive conditions within a reasonable timescale and failure to meet a time limit specified in the missives.

So even if you continued to market, you could not accept further offers while the existing one is progressing. So what would be the point? People could view but not offer.