Estate agent working for seller and buyer

swinstan · 18 August 2017 at 10:26PM

I suspect the estate agent selling my rental property is also working as the letting agent for my buyer and I'm not convinced the advice I've been given has been as independent as it might have been, e.g. in dropping my price. He has in fact taken possible tenants around the house to view already. Does anyone know if this contravenes any codes of practice? I just find in unethical, particularly since he hasn't declared this interest in the other party. Contracts have not been exchanged and I'm in no hurry to sell.

G_M · 18 August 2017 at 11:36PM

If you're not hapy with the agent, give notice and instruct a different one.....

swinstan · 18 August 2017 at 11:40PM

Thought of that, but if we opt out after them finding a buyer there are some hefty charges.

Thrugelmir · 18 August 2017 at 11:42PM

Was your choice to reduce the selling price. Presumably you were happy with the offer that was made.

G_M · 18 August 2017 at 11:45PM

swinstan wrote: »

Thought of that, but if we opt out after them finding a buyer there are some hefty charges.

If they find you a buyer, why do you care? They've done their job yes?

eddddy · 19 August 2017 at 10:22AM

I guess you're saying the following:

There is a potential conflict of interest - because the potential buyer is also a client of the EA.

And perhaps the potential buyer is a 'more important' client to the EA than you are (e.g. because the potential buyer lets lots of properties through the EA).

So the EA may be focusing harder on negotiating a low price for their 'important customer' than negotiating a high price for you (their 'less important' customer).

EAs have a duty to inform you of any potential conflicts of interest - but I guess the situation that you describe is a grey area.
See the code of practice for EAs for TPOS members: https://www.tpos.co.uk/members/codes-guidance

You should ask the EA about their relationship with the potential buyer - e.g. how much business they do with each other. And take that into account in your decision making.

swinstan · 20 August 2017 at 12:27PM

Thanks eddddy, for some useful information. You've got the exact point of my question. I feel like I have been taken for a ride. And even though I was willing to accept the lower price, another £5k would have been very welcome. We pay estate agents a substantial fee for their services and expect them to act in our best interests. We were not informed of any confict of interest and that's my main grievance. Again thank you.

ScorpiondeRooftrouser · 20 August 2017 at 12:46PM

They recommended you accept a price and you did. If you think you were wrong to do so, you can turn round and tell them you have changed your mind. I am not sure what you think any sort of code could do to to give you any better option than this.

swinstan · 22 August 2017 at 10:32PM

Thanks Scorpion... but you have missed the point again. The code of practice actually states clearly that the Agent should notify the seller in writing if they are acting for both parties - and take action to remove themselves from one side or the other. I assume that this is to ensure professional standards are maintained and to avoid suspicions of any collusion between them to get the property for a lower price than its true worth. We employ estate agents to advise us about the best possible price we can expect in the prevailing market, and not just to sell the property. This to me is malpractice. I can of course withdraw as you say, but as I have already stated, I will be charged.

ThePants999 · 22 August 2017 at 11:56PM

On a point of etiquette - feel free to click the "Thank You" button on eddddy's post if it was helpful!

swinstan · 23 August 2017 at 6:33PM

Thank you ThePants999. I have done so and have clicked yours too. I didn't realise this was so important, but both of you have offered me some really useful info.