Estate agent won't inform vendor of our offer

tchcreates

My partner and I have found a property for which we'd like to put an offer in.

I called the estate agent (Haart) and after answering some standard questions I was told that we had to "substantiate the offer" by making an appointment with their in-house mortgage broker.

We already have a mortgage broker that we have an appointment with on Friday so we have no intention of using Haart's broker.

Heart will not inform the vendor of the offer unless we see them and are effectively blocking us from putting an offer in.

Is this usual practice for estate agents and do they have a right to do so?

We don't know if the offer will be accepted so, assuming that Haart want us to obtain a mortgage in principal, if the offer isn't accepted then we'd have to do the whole thing again.

All we want to do is open up the negotiation process; once we agree a price we would speak to our mortgage broker to obtain a mortgage in principal and make the offer more formal through a solicitor. This is how we've progressed with a purchase before.

Finchy2018

They are doing their job by ensuring you can proceed if an offer is accepted. Give them your mortgage advisors contact details and ask them to confirm with your advisor. They have a legal obligation to forward all offers to the vendor but are ensuring you can proceed with the purchase. You don't have to see their in house advisor. Even if you do see them you don't need to use their services.

CommitedToChange

Options as I see them.

1: go see the inhouse broker to prove you have funds in place but then decline to use their service or let them do an api. Then get your offer put to vendors by ea as you have now met their broker - they can't make you use them.

2: put a note through the property you want explaining the situation

3: look for another property.

G_M

Not only do they not have this right, they are actually breaching their obligations.

Unless their client (the seller) has specifically instructed them to do this, in writting.

Which ombudsman scheme dod they belong to? (look on their website). Then look up the ombudsman's code of conduct.

You can also always pop a letter explaining through the seller's door - the mght be really p*ssed off to find their agent is not passsing on offers. The seller probably wants to see all offers.

Fisa002

I would stick with my
Mortgage broker. If it helps get a Dip done and then give the offer if you don’t mind the wait or try to see yours sooner.

As mentioned there is a legal obligation to pass on offers to vendors by the EAs so perhaps either writing one or emailing across the offer should get the ball rolling for you.

stator

It's quite common for the national chain estate agents to do this sort of thing.
They probably have a signed piece of paper from their client saying they want the estate agents to do this. Although the client probably didn't fully understand what they were signing.

Your choices are to either see the mortgage advisor or bypass the estate agents and make the offer directly to the vendor, telling them to sort out their estate agent if they wish to accept your offer.

When I was buying a house I saw one estate agent's advisor and he wasn't too bad. I took in the details of the offer I had from Post Office (BOI) and he said something along the lines of "That's a pretty good deal we can't beat that" and then they photocopied my 'offer in principle' and everything continued as normal. So it might not be too bad. However some of them can be very pushy, so you have to be prepared to stick to your guns and tell them you don't want them to do anything, make sure they don't do anything that will leave a mark on your credit file

tchcreates

Thanks for the input guys.

I've checked the Ombudsman's code of conduct which states:
"The agent must record all offers received and pass a written copy of the offer promptly to the seller. The agent must not conceal, misrepresent, withhold or delay communicating offers."

From this it would seem that they are breaking this code so I'll point them to this if I get resistance tomorrow (I'm still under the impression that the guy I spoke with made an error).

If they do insist on meeting their mortgage broker I'll write a letter to the vendor and hand deliver it explaining the situation.

ileven1225

it's a common practice to get an agreement in principle (AIP) from any bank and give to an estate agent when you put an offer. It won't take you long in the bank and it can be used for other offers afterwards. So do it tomorrow.

m0bov

They might be making more on the kick back from the mortgage broker than the sale. I'd be popping a note into the vendor asking them if they relise they are losing out on a sale due to the agents.

AnotherJoe

tchcreates wrote: »

Thanks for the input guys.

I've checked the Ombudsman's code of conduct which states:
"The agent must record all offers received and pass a written copy of the offer promptly to the seller. The agent must not conceal, misrepresent, withhold or delay communicating offers."

From this it would seem that they are breaking this code so I'll point them to this if I get resistance tomorrow (I'm still under the impression that the guy I spoke with made an error).

If they do insist on meeting their mortgage broker I'll write a letter to the vendor and hand deliver it explaining the situation.

Make sure any such letter explains that you do have a mortgage in principle arranged, because as sure as eggs are eggs, the EA will tell them that they have been unable to clarify your financial status and that's why they haven't put the offer through, they are avoiding "time wasters"

So you need to forestall that.

Thrugelmir

tchcreates wrote: »

Thanks for the input guys.

I've checked the Ombudsman's code of conduct which states:
"The agent must record all offers received and pass a written copy of the offer promptly to the seller. The agent must not conceal, misrepresent, withhold or delay communicating offers."

From this it would seem that they are breaking this code so I'll point them to this if I get resistance tomorrow (I'm still under the impression that the guy I spoke with made an error).

If they do insist on meeting their mortgage broker I'll write a letter to the vendor and hand deliver it explaining the situation.

The EA works on their clients instructions. While you may not like it. Better to focus on the property itself. Than making an issue which will gain you nothing.

Over the years encountered plenty of timewasters myself when it comes to selling property. Lots of people view properties they have little real intention of buying. Personally I prefer the EA to vet. Then I prefer doing the viewings.