Pressure to use builders broker solicitor (part ex house)

Lewis.hudson90

Hi there,

First time poster and house buyer.

We are currently in the process of putting in an offer for a house that has been part exchanged for a new build by the current owners (persimmons builder)

The estate agent came back to us today and said that we would be required to use the builders own broker and solicitor.

I would assume this is standard practice when buying a new home from them, and they would possibly offer some incentives to do this, however this is not a new build and at at the moment feel like we are being pushed to use their with no actual incentive for us to use theirs, other than them not accepting an offer should we refuse

We currently have a MIP with halifax direct, and the solicitor fees are more expensive than we have been quoted by halifax.

New to all this with this being our first home together so any advice would be appreciated

Thanks, Lewis

G_M

Just ignore.

Give them the name and address of your solicior and mortgage advisor.

See the Property Ombudsman rules:

Associated Services

You are not required to use any associated service which is offered by the agent. You are entitled to use your own financial adviser, legal representative and surveyor. Refusal of additional services should not prejudice any offers or viewings made through the agent.
If the buyer accepts services offered though the agent, the agent must inform the seller in writing of those services.

Financial Checks

An agent will ask sellers to provide proof of identity, as required by the Money Laundering Regulations 2007. Buyers will be asked for similar information, along with details of their funding for the proposed purchase at the point an offer is made.

marksoton

As Zamo from Grange Hill got told....

Just say no.

jimbog

Lewis.hudson90 wrote: »

The estate agent came back to us today and said that we would be required to use the builders own broker and solicitor.

Email the estate agent to clarify that you have understood it properly and that it is compulsory

(so that you can have it in writing)

Lewis.hudson90

Hi Guys,

Thanks for the responses. A bit of an updated on the situation below;

Had an offer accepted below the asking price, however they are not budging with their own services, saying because we have had an offer accepted under the asking price, we have been given an incentive. They will not sell us the property without us using their service partners.

In addition, they are asking for exchange within 4 weeks, however we cannot complete until February when the new build for the previous owners is complete. We don't have a major issue with this as we will be house sitting for a friend until this date.

They will not confirm a date in the contract, meaning if the project overruns we will have to wait until it is finished to complete and move in.

hazyjo

Tell the vendors they're blackmailing you.


Tell whatever body they are part of that you won't be bullied.


Your mortgage offer is likely to expire before completion which could prove to be a nightmare if you can't extend or get another offer. Your (independent) solicitor will advise against. Their legal bods will probably tell you to go ahead. You need a solicitor to have your best interests at heart, not the developer's.


Jx

cloo

Is it even actually legal to make using certain vendors a condition of sale? Sounds like very sharp practice to me. Below asking price shouldn't have any bearing on the matter.


They're definitely bullying you, what with the four-week exchange business, and they have no right to.

keith969

Lewis.hudson90 wrote: »

Hi Guys,

Thanks for the responses. A bit of an updated on the situation below;

Had an offer accepted below the asking price, however they are not budging with their own services, saying because we have had an offer accepted under the asking price, we have been given an incentive. They will not sell us the property without us using their service partners.

In addition, they are asking for exchange within 4 weeks, however we cannot complete until February when the new build for the previous owners is complete. We don't have a major issue with this as we will be house sitting for a friend until this date.

They will not confirm a date in the contract, meaning if the project overruns we will have to wait until it is finished to complete and move in.

So Persimmon want to blackmail you into using their services so they can charge you extra for who knows what quality of service, and they also want to lock you in by making you exchange now rather than in 6 months time?

Tell them where to go, and look for somewhere else. You've got plenty of time to find somewhere where you won't be ripped off.

ScorpiondeRooftrouser

cloo wrote: »

Is it even actually legal to make using certain vendors a condition of sale? Sounds like very sharp practice to me. Below asking price shouldn't have any bearing on the matter.


They're definitely bullying you, what with the four-week exchange business, and they have no right to.

They have every right to impose whatever conditions they like on the sale of a house. However nobody has to buy it with those conditions attached.

Lewis.hudson90

Thanks for the responces, really has helped as we are both virgins to the house buying process.

Will be retracting the offer based on the long period between exchange and completion aswell as the fact they cannot confirm this and will not allow us to use our own solicitor.

Found out the mortgage offer would be close to expiring in february and we would have to insure the building for that length of time.

I was also concerned of what assurances we would recieve that the house would be in the same condition on completion as it was at exchange 5-6months later.

Will keep an eye on it in the meantime and we may even be able to get a better deal if it is still on the market after christmas?

Thanks again! I am sure ill be posting again with more questions!

david1951

You've done the right thing. As a FTB you can easily sit it out for a couple of months and see what happens.