Estate agent refusing to give information on a leashold.

deadhandle

I am a buyer, and very interested in a Leasehold retirement flat advertised locally.

The estate agent provided the lease length service charge and ground rent (amounts only, and only after I insisted)

I considered this insufficient information to make a decision.

After research, I refered the agent to "The Property Ombudsman (TPO) guidelines for residential agents" Paragraph 7k, which says the marketing "In regard to leasehold properties, in accordance with paragraph 4e, you must provide material information to the consumer so they can make an informed transactional decision."

it then goes on to list several pieces of information that I had already asked and thought was just common sense. including when fees are payable, what works are planned or likely and is the sinking/maintenance fund enough to cover them.   see https://www.tpos.co.uk/codes-of-practice

They are still refusing, saying that I must use a solicitor: The "Senior Negotiator" actually said their only job was to get the "best price for the seller", and he has never been asked for that information, ever, in the local area.

I understand there's no obligation to use a solicitor at all, although it is advisable. Even so, I wouldn't appoint one until i was satisfied about what I was committing to and after a survey.

I know they are guidelines, not mandatory, but there seems to be no way to complain, or get advice fron the TPO

This seems to be the best suited flat in the town, although it seems to have been on the market for at least 6 months (price reduced in September 2020)

I'd be grateful for any advice?

greatcrested

EAs are not conveyancers or lawyers. They basically know what their client, the seller, tells them.

Investiagtions into Title, and the legal details within or related to leases are for a lawyer - indeed if a legally unqualified  EA were to provide information that might later prove erroneous they would be in serious trouble, so I perfectly understand why they decline to do so.

deadhandle

Ok, How does that tie in with the TPO guidelines for marketing?

deadhandle

If I'm buying something I need to know what I'm buying and how much that will cost me.

I don't buy a car without checking the insurance cost.

[Deleted User]

Correct, but you'd get that information from an insurer, not the car salesman.

theoretica

If you want to make an offer you can make it clear it only stands if the answers are provided and positive.

deadhandle

OK Bad example.

The Property ombudsman thinks EAs should give "material information to the consumer so they can make an informed".

When you but a leasehold you are NOT buying the property, you are buying the right live in the property for X years, plus the obligation to pay ground rent and a share of maintenance, repairs and other fees, e.g. insurance..

I call all those material costs that i need to know about and that the seller sould tell the EA, with appropriate evidence if necessary.

If the seller refuses to tell the EA, or gives false information, then the seller should be liable, not the buyer.

deadhandle

thanks, theo.. already made that clear to the EA.

greatcrested

If you want to make an offer you can make it clear it only stands if the answers are provided and positive.

deadhandle said:

thanks, theo.. already made that clear to the EA.

Not sure what that adds.

EA passes offer to seller, who accepts the offer.

Seller then waits for your solicitor to undertake normal enquires. If those enquires don't satisfy you, you wihdraw.

Which you could do whether you'd made  your offer conditional as above or not. ALL offers are conditional and can be withdrawn up to Exchange for any (or no) reason.

I suppose you could refuse to instruct a solicior till the seller provided the information, but I suspect that unless there were very litle interest in the property, the seller would simply turn to another buyer.

Racky_Roo

I doubt the EA knows the info you want, that comes from a management pack which is created when you have an offer accepted. Have you asked the EA to ask the vendor those specific questions and they have refused/said they don't know? Often retirement properties are sold by the families as the owner has passed away or is in a home so maybe they genuinely don't know the answers. You could make it part of your offer that you want to see the management pack before paying for any searches etc and the offer may be revised should any unexpected information arise. The management pack will be needed anyway so shouldn't be too much of an issue for the vendor to commission it as soon as you have your offer accepted

theoretica

deadhandle said:

thanks, theo.. already made that clear to the EA.

But have you told them what your offer is?  They don't want to go through faff for someone who then makes an offer the seller rejects for being too low.