Can estate agents refuse to let you purchase a property unless you have a mortgage?

deadendwaterfall

Even if you could say for example offer three times the amount the property price, and could of course prove you had said funds immediately without requiring a mortgage, could they insist that instead you get a mortgage before they allow you buy the property and if so, has anybody here ever had this happen to them?

Adereterial

There is nothing stopping them doing so, but the estate agent isn’t the one who would be imposing those conditions, it would be the vendor.

hazyjo

Not sure if I'm understanding right as I'm not sure you're actually asking this, but:


- Of course you can pay cash for a house and not have a mortgage.


- Not sure about the 3x bit. Just why? Or are you trying to say that if you had 3x the amount in the bank, which is totally irrelevant so not sure what point you're making.


Can you actually explain the situation you are in?

hazyjo

Adereterial wrote: »

There is nothing stopping them doing so, but the estate agent isn’t the one who would be imposing those conditions, it would be the vendor.

Why would the vendor want to sell to someone with a mortgage over a cash buyer? :think:

Sea_Shell

Of course you can buy a property without a mortgage. Many people are cash buyers, for one reason or another. No need to "over offer" though, what would be the point in that?

Adereterial

hazyjo wrote: »

Why would the vendor want to sell to someone with a mortgage over a cash buyer? :think:

I’m not saying they would, but the question posed is COULD an estate agent refuse to sell to someone who wasn’t getting a mortgage, not WHY would someone do such a thing, or can you buy without a mortgage. The answer is of course, as I said - nothing to stop them but it wouldn’t be the agent imposing such conditions, but the vendor.

davidmcn

As long as they're not discriminating against you on the basis of a protected characteristic, then yes the agents (and/or their clients) are free to refuse any offer for whatever reason they like.

And no, I doubt anybody here has offered three times the market price for a property.

ACG

hazyjo wrote: »

Why would the vendor want to sell to someone with a mortgage over a cash buyer? :think:

In my experience, cash buyers are rarely cash buyers. They are usually getting finance from another property. And where the cash buyer is a hardened developer, they tend to reduce the amount they are offering at the last minute when everyone is financially and emotionally tied in.

babyblade41

Estate agent can't refuse/ discriminate but a vendor can. Not sure why they'd want to but who knows

It's up to everyone to do due diligence and have proof of funds so not really probable

Bacon_Sandwich

Maybe the vendors have had a previous bad experience with a cash buyer, and have instructed the agent not to pass on offers from cash buyers? As mentioned above, cash buyers (such as investors, developers) can often be unscrupulous, or not have the liquidity they claim.

hazyjo

ACG wrote: »

In my experience, cash buyers are rarely cash buyers. They are usually getting finance from another property. And where the cash buyer is a hardened developer, they tend to reduce the amount they are offering at the last minute when everyone is financially and emotionally tied in.

Agree to a degree. 'Cash buyer' is often used rather loosely! And yes investors often reduce. Both did cross my mind, but thought surely the ad would have stated 'no cash buyers' or something. Plus a buyer needing a mortgage is probably far more at risk of not getting it than to risk a cash buyer dropping their offer.

Just seems very strange. Many people sell up and rent in order to be cash buyers. They have to prove the cash is available usually to the EA and certainly to the solicitor (complying with money laundering regs too) so I really can't see the problem.


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