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If a sale falls through, does the estate agent have to tell new perspective buys why?

My advisor told me that if the estate agent puts the property back on the market they have to tell the new buyer why the previous sale fell through.

Sounds great, but is he correct?

TIA
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Comments

  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    My advisor told me that if the estate agent puts the property back on the market they have to tell the new buyer why the previous sale fell through.

    Sounds great, but is he correct?

    TIA



    Short answer - no.


    Long answer - in some circumstances yes, but it's pretty much impossible to prove
  • SmashedAvacado
    SmashedAvacado Posts: 1,262 Forumite
    1,000 Posts First Anniversary
    They don't
    But you can't ask them to lie

    Your agent wants the property sold, so presumably they are not planning on saying anything that causes concern. Collapse of the buyer's sale is the best outcome (if this is the truth). Failing a survey because its made of asbestos and Plasticine less so.
  • Why would my mortgage advisor say that?
  • SmashedAvacado
    SmashedAvacado Posts: 1,262 Forumite
    1,000 Posts First Anniversary
    Why would my mortgage advisor say that?

    clinical idiocy?
  • Time to get a new one
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Time to get a new one
    Or time to get your legal advice from your lawyer, rather than a mortgage advisor.
  • Hi david he said he worked for an estate agent. It’s not legal advice.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Hi david he said he worked for an estate agent. It’s not legal advice.
    It reads like advice about the law to me. If he was giving you duff advice about mortgages, that would be a different matter.
  • need_an_answer
    need_an_answer Posts: 2,812 Forumite
    Ninth Anniversary 1,000 Posts
    No legal requirement to disclose why a sale falls through.In some cases it might be wise for an agent or vendor to disclose the reason,for example if it fell through because of something that will have some affect on the sales going forward.

    I once purchased a property where the sale had fallen through because of a nearby planning application,it bothered the previous potential buyer but not me.

    Some sales fall through in the early stages because of inability to raise the mortgage for example.that shouldn't always have a bearing on the next purchaser.
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  • SouthLondonUser
    SouthLondonUser Posts: 1,445 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper Combo Breaker
    OP, you might want to look into Consumer Protection from Unfair Trading Regulations

    https://hoa.org.uk/2013/10/what-estate-agents-have-to-tell-you-changes-to-the-law/

    Basically (lawyers will forgive my imprecisions), agents have to disclose any material fact. So if a buyer pulls out because of Japanese knotweed or because of some unsafe cladding, they have to tell you that.

    But, if the landlord tried to gazump the buyer and the buyer pulls out, I don't think the agent has any obligation to tell you; he will probably just blame it on the buyer or say something about finance not arranged.

    PS My starting assumption is never to trust anyone anyway - best to do your homework and pay for thorough surveys than to try to sue the agent and the vendor afterwards
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