Estate agent not passed on offer

Nursepenny · 27 May 2018 at 10:26AM

I put my house on the market 2 weeks ago and sold it straight away after a little bidding war. We accepted an offer and the sale is proceeding. Yesterday we had a knock at the door and it was one of the clients that had put an offer in that was rejected. He said he was just knocking to find out why we wasn't interested in his offer. Our sale is going through at £415,000 and he had offered 420,000. I told the gentleman that I had never received an offer of £420,000. I called the agent who first denied this offer then he said he thought we were happy with the 415 so didn't put this offer forward to us ( a week ago). Since then our buyers have had survey done and have payed out money for searches etc. He called our buyers regarding the new offer yesterday after our conversation coming back to me stating the buyer is threatening to come round to me. By this point my husband was very worried and concerned as it should never have come to this. I told the agent its not fair on our buyers and had this offer been put through when it was placed we would have accepted as its an extra £5000 but as it stands not it is the agents fault and I feel they should be dropping there fees as they have broke the law .
Advice wanted please as I don't know where I stand. The buyer did turn up on my doorstep last night and are very unhappy withe the estate agent.

davidmcn · 27 May 2018 at 10:35AM

How proceedable is the £420k offer? No point dropping your current buyer in favour of them if they're e.g. still to sell or otherwise not ready to survey, order searches etc.

Nursepenny · 27 May 2018 at 11:11AM

Well apparently they are in a good position. I cannot drop my buyer now but would have done so had the offer been put to me when it should have been. The agent was never going to disclose the offer if I hadn't called them.

[Deleted User] · 27 May 2018 at 11:35AM

You could offer to refund the buyers survey fees and go with the offer you didn't know about? Then try to get the EA to refund the fees although I'm not sure you'd get anywhere with that.

eddddy · 27 May 2018 at 11:43AM

When a sale is progressing well, EAs often don't like to disrupt it with new offers.

They might even know from experience, that people who come in with rash 'gazumping' offers don't make reliable buyers.

But, as you say, the EA still seems to have broken the law. They should have told you about it - and maybe discussed the pros and cons of accepting it.

It would be a bit more sinister if the EA was earning extra fees (or getting extra business) from your current buyer. e.g. Via mortgage brokering or conveyancing.

i.e The EA preferred the £415k offer, because it might earn them more fees/business than the £420k offer.

You could ask the EA whether they are getting any additional fees/business in relation to your current buyer.

G_M · 27 May 2018 at 11:43AM

Which ombudsman scheme does the agent belong to?
What does the scheme code say about offers?

eg the TPOS Code of Practice says:

9a By law, you must tell sellers as soon as is reasonably possible
about all offers that you receive at any time until contracts
have been exchanged unless the offer is an amount
or type which the seller has specifically instructed you, in
writing, not to pass on. You must confirm each offer in writing
to the seller, and to the buyer who made it, within
2 working days.

9b You must keep a written or electronic contemporaneous
record of all offers you receive including the date and time of
such offers and the seller!!!8217;s response.

Nursepenny · 27 May 2018 at 11:50AM

I have not paid any fees. This is all the agents fault they have breached there contract by failing to disclose an offer. I will not pull out from the buyer I have at present and feel it is the agent fault I have missed out on the 5000. The purchaser and the gentleman who put in the higher offer are all going to file a complaint. The agent knew he was in the wrong as was panicking on the phone.

G_M · 27 May 2018 at 11:54AM

Neither the purchaser, nor the other potential buyer, have a legal relationship with the estate agent.

If a complaint is to be made, it should be made by the estate agent's client. You.

steampowered · 27 May 2018 at 12:05PM

I would be tempted to deduct the £5,000 difference from the estate agent's commission.

eddddy · 27 May 2018 at 12:13PM

Nursepenny wrote: »

I have not paid any fees. This is all the agents fault they have breached there contract by failing to disclose an offer. I will not pull out from the buyer I have at present and feel it is the agent fault I have missed out on the 5000. The purchaser and the gentleman who put in the higher offer are all going to file a complaint. The agent knew he was in the wrong as was panicking on the phone.

The EA has done wrong - but what outcome are you looking for?

You mention breach of contract - but in legal terms, you haven't suffered a loss - because you can still switch to the other buyer.

If you want the EA punished, you could complain to the ombudsman, the EA is likely to get a serious rap across the knuckles - perhaps even struck off. So you'd get justice, but no money.

You could ask the EA for a substantial discount on fees (£5k?), because of poor service. They might agree.

(I suppose the subtext might be... if you don't give me a discount, I'll report you to the ombudsman, and you'll be in big trouble. But some people might say that's blackmail.)