Buying through Springbok properties

JuzaMum

I have booked a viewing to see a flat advertised by Springbok properties. My initial impressions of Springbok aren't good and I would be much more comfortable with a traditional agent. The property did have an offer on it but it has fallen through. I am told this is because the buyer couldn't get the funds to purchase. They have a model where you pay £2,500 to 'secure' the property and also pay for the information pack. I assume the person who put in the offer lost their £2,500 as it is non refundable. 
Has anyone had experience of buying/offering through Springbok? 

eddddy

Have they explained why they want a £2.5k fee when almost every other EA doesn't?

I've spoken to other agents (not Springbok) who ask for a fee like this, and it just sounded like a money-making wheeze for the agent - with no real benefit to the seller or buyer.

Do you need a mortgage? If so, check whether you will be buying the property from whoever currently owns the house, or whether you will be buying it from Springbok using a back-to-back contract.  No mainstream mortgage lender will lend on a property bought on a back-to-back contract.

And find out why the previous buyer "couldn't get the funds" - that sounds like a mortgage issue. (If they were a cash buyer they would have had the funds in their bank account.)

• Was it because of a back-to-back contract?
• Was it because of something else that made the property unmortgageable?
• If so, will you have a mortgage refused for the same reason?

As you can imagine, it would be 'a nice little earner' to take £2.5k off a prospective buyer, who then finds a big problem with the property and walks away. So they then take £2.5k off another prospective buyer, who finds the same big problem and walks away - and repeat the process multiple times.

They could earn a nice income without ever actually selling any properties.

In fact, it sounds like it's in their interests to make a sale fall through - so that they can charge somebody else a £2.5k fee for the same property.

JuzaMum

eddddy said:

As you can imagine, it would be 'a nice little earner' to take £2.5k off a prospective buyer, who then finds a big problem with the property and walks away. So they then take £2.5k off another prospective buyer, who finds the same big problem and walks away - and repeat the process multiple times.

They could earn a nice income without ever actually selling any properties.

In fact, it sounds like it's in their interests to make a sale fall through - so that they can charge somebody else a £2.5k fee for the same property.

Indeed a nice litter earner for the agents. I do not need a mortgage but if the property is unmortgagable I want to know why as I don't want to throw money away. Interestingly another property has just become available in the same block and is cheaper.

moneysavinghero

Is this in London by any chance? Maybe flat owners with cladding issues that can't sell for love or money and are so desperate to sell they are resorting to the Springbok type of companies to try and get a sale.

JuzaMum

Bournemouth and no cladding

user1977

JuzaMum said:

eddddy said:

As you can imagine, it would be 'a nice little earner' to take £2.5k off a prospective buyer, who then finds a big problem with the property and walks away. So they then take £2.5k off another prospective buyer, who finds the same big problem and walks away - and repeat the process multiple times.

They could earn a nice income without ever actually selling any properties.

In fact, it sounds like it's in their interests to make a sale fall through - so that they can charge somebody else a £2.5k fee for the same property.

Indeed a nice litter earner for the agents. I do not need a mortgage but if the property is unmortgagable I want to know why as I don't want to throw money away.

Even if it appears mortgageable I would stay well clear from this sort of method. I'm sure the property isn't going to be "secured" in a way which is in your favour - countless other potential reasons why you might decide not to proceed.

eddddy

JuzaMum said:

They have a model where you pay £2,500 to 'secure' the property and also pay for the information pack. I assume the person who put in the offer lost their £2,500 as it is non refundable. 

Looking at the listing for the property, it says:

TENURE, To be confirmed by the Vendor's Solicitors

Are they suggesting that you need to pay a £2.5k deposit, instruct your solicitor - and then find out how long the lease is?
(And then maybe you find out that the lease is unacceptably short - so you've lost £2.5k plus your solicitor's fees.)

Normally you would expect to see a full legal pack (lease, searches, TA6, TA7, LPE1 etc) before paying a £2.5k deposit.


And are you sure they provide an 'information pack' - that's not what the listing says?

The listing says you pay a fee of £396 for drawing up an exclusivity contract. You definitely need to know the wording of that exclusivity contract before handing over £2.5k and/or £396 - to fully understand the circumstances in which you can lose your £2.5k.

JuzaMum

eddddy said:

Looking at the listing for the property, it says:

TENURE, To be confirmed by the Vendor's Solicitors

Are they suggesting that you need to pay a £2.5k deposit, instruct your solicitor - and then find out how long the lease is?
(And then maybe you find out that the lease is unacceptably short - so you've lost £2.5k plus your solicitor's fees.)

This is what concerns me.
Sorry my mistake as it is a contract that I would have to pay for which I am very wary of. I am hoping someone will come along who has experience of their contract.

eddddy

FWIW, Springbok are members of the Property Ombudsman Scheme - but they appear to be breaching the mandatory code of practice by not providing material information.  I guess you need to be extra wary of companies who break the rules of their ombudsman! 

(If you feel like it, you can remind them of their ombudsman's mandatory code of practice.)

The code of practice says:

7k In accordance with paragraph 5e, where the title is registered at HM Land Registry, you should seek to obtain title information to verify the tenure of the property.

• 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. Material information in respect of the lease includes, but is not limited to, the following:

• Number of years remaining on the lease;

• Amount of ground rent (*) and when payable, together with details of how this will increase over time, if applicable;

• Rent payable in the case of a shared ownership arrangement;

For leasehold, commonhold and freehold properties where the owner has a legal obligation to contribute towards the maintenance costs of a shared amenity, material information would include, but is not limited to the following:

• Amount of service charge (*), and when payable;

• Amount of any event fees (*), and when payable;

• Amount of reserve fund (*) contribution and when payable (if not already included in other charges);

• Approximate total amount of reserve fund;

• Details of any event-related fees and charges payable under the lease that are triggered by certain circumstances or events;

• Details of any other fees / charges contained in the lease, commonhold community statement or title deeds.

For all properties, material information would include, but is not limited to the following;

• Details of any unusual restrictions or covenants affecting the use and enjoyment of the property.

Link: https://www.tpos.co.uk/images/Codes_2019_a5/TPOE27-8_Code_of_Practice_for_Residential_Estate_Agents_A5_-_Effective_1_June_2019.pdf

GDB2222

This is just like a 'Modern Auction', and most people have learned to steer clear of those.  

Stan29101

I bought my house which was sold by Springbok properties. This was 2 years ago and there was no £2.5k fee...no fee at all. It was similar to a standard agency aside from the fact they were not based nearby (I think somewhere up North and I’m in Birmingham). I spoke to the agency a few times with my offer and they were fine. Initially the owners accepted an offer from someone else which fell through and 3 months later I had a call to see if I was still interested...not sure why it fell through as they never tell you the real reason.