OEA Code of Practice - 'Offers' versus 'Notes of Interest'...

Lips

I've been reading the OEA Code of Practice and it seems that my EA hasn't been adhering to this...on so many levels. :rolleyes: However, the main thing that is concerning me is that I never got any written confirmations of offers - it was all done on the phone. I note that Section 6a says :

'By law, you must tell sellers as soon as is reasonably possible about all offers that you receive at any time... You must confirm each offer in writing to the seller... within two working days.'

(the emphasis is mine, not the Code's)

I then see Section 6i - the Scottish adendum, which states :

'If you have received a Note of Interest (either orally or in writing) from someone intending to make an offer, you must : Immediately tell the seller about the Note of Interest and confirm the details in writing, whenever this is practicable.'

So, I had an offer which was made via a solicitors letter, but was subject to survey - was this an 'offer' or a 'note of interest'? Should I have received a written confirmation within two working days?


All advice appreciated...

Lips

merlinthehappypig

We had some offers confirmed in writing when we sold earlier in the year and some verbally. We didn't receive written confirmation of any of the notes of interest, just verbal. You had an offer if it was subject to survey - a note of interest is just that, a note of interest from a prospective purchaser so that the estate agents or solicitor have to let them know if any other offers are received. Personally I wouldn't worry too much - the agents in England don't follow all the rules regarding confirmation of offers either. The only one which matters is when you sell it!

lynzpower

I used to be an EA and as soon as i got an offer, the letter was printed and posted, even if I hadnt got through to the vendor.

Id say its whollly important, as it does not comply with the code.

IM in England so im not too sure what note of intent is, but offers are offers- and they would be written to the vendor- literally, within the hour.

Lips

Thanks for the responses.

It's somewhat academic now as the missives have been signed, but I get annoyed when a Code of Conduct is blatantly disregarded. By my reading of it, following it is not optional; it's not a 'guideline', as Section 1b says 'You must comply with this Code of Conduct.'

From day 1, my Agent was lousy at communication and feedback, even after I sent a rocket of a letter of complaint (which didn't get a 2-day written response, or indeed any formal response, as per the Code...)

Now that everything is concluded, I'm drafting another letter detailing their shortcomings, and copying it to their head office. Perhaps they'll get additional training resource to help prevent issues like this, but I suspect probably not.

In any case, I find venting good for the soul, and I think it's important that professionals be reminded just how important house-selling/buying is to the average Joe, even if, to them, it's just a daily slog.

Cheers,
Lips

RickG

The OEA Code of Practice is absolutely shot through with errors, and this is one of them.

Section 6a provides:-

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 two working days.

However, this is significantly weaker, as to time of compliance, than the corresponding statutory provision. Article 2(c) of and Paragraph 2 of Schedule 3 to the Estate Agents (Undesirable Practices) (No. 2) Order 1991 declare the following practice to be undesirable:-

The failure by an estate agent to forward to his client promptly and in writing accurate details (other than those of a description which the client has indicated in writing he does not wish to receive) of any offer the estate agent has received from a prospective purchaser in respect of an interest in the land.

“Promptly” means:-

Within as short a period as is reasonably practicable in the circumstances, from the moment when what is to be done can reasonably be done.

Although “as soon as is reasonably possible” more or less reflects this, it only applies to oral communication of offers. Written confirmation need only follow within two working days.

The corresponding statutory provision, however, contains no such lenience. The details must be forwarded promptly and in writing.

Therefore, you should rely on the statute, not the Code of Conduct. You can still enforce it through the OEA though.

Lips

RickG wrote: »

The OEA Code of Practice is absolutely shot through with errors, and this is one of them.

Section 6a provides:-

However, this is significantly weaker, as to time of compliance, than the corresponding statutory provision. Article 2(c) of and Paragraph 2 of Schedule 3 to the Estate Agents (Undesirable Practices) (No. 2) Order 1991 declare the following practice to be undesirable:-


“Promptly” means:-


Although “as soon as is reasonably possible” more or less reflects this, it only applies to oral communication of offers. Written confirmation need only follow within two working days.

The corresponding statutory provision, however, contains no such lenience. The details must be forwarded promptly and in writing.

Therefore, you should rely on the statute, not the Code of Conduct. You can still enforce it through the OEA though.

I knew you guys would come up trumps with this :T

So, just to be absolutely clear, can I put something like this in my letter :-

"...according to Article 2(c) of and Paragraph 2 of Schedule 3 to the Estate Agents (Undesirable Practices) (No. 2) Order 1991, you were legally obliged to provide me with a written confirmation of the offer within two working days."

When I saw the phrase 'by law' in the Code of Conduct, I thought that there must have been corresponding legislation somewhere, but I didn't know where to start looking. Thank you so much.

- Lips

PROFESSIONAL_LANDLORD

So, I had an offer which was made via a solicitors letter, but was subject to survey - was this an 'offer' or a 'note of interest'? Should I have received a written confirmation within two working days?

What you had was a LEGAL offer, although 'subject to survey' a 'note of interest' is given to EAs by a prospective buyers solicitor, asking the EA to inform the buyer via their solicitor of any impending closing date.

You should have been informed immediately the offer was put forward, maybe the EA 'forgot' or I wonder if the buyer wasn't taking a mortgage through your EA :rolleyes:

RickG

Lips.

Not quite. It's better (or worse from the estate agent's point of view) than that:-

...according to Article 2(c) of and Paragraph 2 of Schedule 3 to the Estate Agents (Undesirable Practices) (No. 2) Order 1991, you were legally obliged to provide me with a written confirmation of the offer promptly.

The "two working days" rule, in the OEA Code, is wrong.