What should estate agent tell buyers?

evymay

Hi all, 

I am a first time buyer and not really aware how the market works, but I was quite lucky to find a dream-home quickly in crazy market conditions nowadays. It all looked smooth, as I didn't have to offer much over the asking price. I was a bit concerned there was no written communication from the agency, all offers were taken via phone calls and I was also informed about the offer acceptance verbally. I then started to sort out my mortgage. I was shopping around, speaking with multiple mortgage brokers, including the one offered by the estate agent. After choosing my best deal, I told the in-house mortgage broker that I will be working with another adviser. The next day, estate agent called me and told that the acceptance of my offer on the property was conditional upon me staying with in-house mortgage broker. What a surprise! I was also told that it is the vendor who put this condition and there is nothing to do with the estate agent. However, shouldn't they inform me about this condition when telling me that my offer was accepted?

I was told that I can still choose to work with an external mortgage broker, but in this case, the estate agent will bring all offers back to market and my offer will no longer be accepted by the buyer. I was just wondering if anyone had a similar situation and whether there is something I can do about it? 

Jumblebumble

evymay said:

Hi all, 

I am a first time buyer and not really aware how the market works, but I was quite lucky to find a dream-home quickly in crazy market conditions nowadays. It all looked smooth, as I didn't have to offer much over the asking price. I was a bit concerned there was no written communication from the agency, all offers were taken via phone calls and I was also informed about the offer acceptance verbally. I then started to sort out my mortgage. I was shopping around, speaking with multiple mortgage brokers, including the one offered by the estate agent. After choosing my best deal, I told the in-house mortgage broker that I will be working with another adviser. The next day, estate agent called me and told that the acceptance of my offer on the property was conditional upon me staying with in-house mortgage broker. What a surprise! I was also told that it is the vendor who put this condition and there is nothing to do with the estate agent. However, shouldn't they inform me about this condition when telling me that my offer was accepted?

I was told that I can still choose to work with an external mortgage broker, but in this case, the estate agent will bring all offers back to market and my offer will no longer be accepted by the buyer. I was just wondering if anyone had a similar situation and whether there is something I can do about it? 

I would be checking directly with the vendor just in case the estate agent has a tenuous grasp of the concept of telling the truth

Flugelhorn

I wonder if the vendor REALLY said that or where they persuaded to do so by the estate agent? 

I suppose you could speak to both brokers and ignore the in-house one? Or can you only deal with one?

Rather reminds me of a developer insisting I speak to their mortgage adviser - taking no notice of the fact that I was a cash buyer. 

AdrianC

evymay said:

I was also told that it is the vendor who put this condition and there is nothing to do with the estate agent.

Yeh, right...

1. The vendor really deeply personally cares about who you use to arrange your mortgage.
2. The vendor doesn't care half as much as the EA wants the extra commission.

Which do you find more credible?

lonibra

This is absolute BS. They can't do that. Did the Estate Agent actually give this in writing?
https://www.thisismoney.co.uk/money/experts/article-9146979/Can-estate-agent-hold-house-offer-dont-use-firms-finance-adviser.html

I have come across a different variation of this where they don't consider an offer without speaking to their financial adviser but never where you HAD to commit to actually using them!

evymay

lonibra said:

This is absolute BS. They can't do that. Did the Estate Agent actually give this in writing?

I have come across a different variation of this where they don't consider an offer without speaking to their financial adviser but never where you HAD to commit to actually using them!

Hi, thank you for your reply. No communication was provided in writing, all via phone. Every time I send them an email, they call me back to discuss. 

evymay

AdrianC said:

evymay said:

I was also told that it is the vendor who put this condition and there is nothing to do with the estate agent.

Yeh, right...

1. The vendor really deeply personally cares about who you use to arrange your mortgage.
2. The vendor doesn't care half as much as the EA wants the extra commission.

Which do you find more credible?

The EA told a story around it that the previous deal failed as buyers were taking mortgage with external mortgage adviser and didn't get it. That's why the seller "wanted to be sure this time that the sale goes through". But I still don't believe that the fact that you get mortgage depends on broker. I am taking less than a half that I actually can and there is no reason for me not getting it. . . Anyways, I should have known about conditions in advance, not at the time I told them that I am not intending to use an in-house mortgage broker

saajan_12

evymay said:

lonibra said:

This is absolute BS. They can't do that. Did the Estate Agent actually give this in writing?

I have come across a different variation of this where they don't consider an offer without speaking to their financial adviser but never where you HAD to commit to actually using them!

Hi, thank you for your reply. No communication was provided in writing, all via phone. Every time I send them an email, they call me back to discuss. 

1. Ask EA to confirm in writing. 
2. Then say you're willing to consider the in house broker and ask for another viewing (ideally with the vendor present)
3. Speak to the vendor, say you like the house, you trust your offer is accepted and that you hope a silly thing like which broker won't hold things up (your one is very efficient, EA probably wants commission etc)

Otherwise has the sales memo been sent, and has your solicitor made contact with the seller's solicitor? if so, repalce with 

1. Ask EA to confirm in writing. 
2. Forward to your solicitor, and ask them to email the vendor's solicitor saying you trust your offer is accepted and that you hope a silly thing like which broker won't hold things up (your one is very efficient, EA probably wants commission etc)

Flugelhorn

I like the idea of getting the EA to confirm in writing, bet they won'y do it 

evymay

saajan_12 said:

evymay said:

lonibra said:

This is absolute BS. They can't do that. Did the Estate Agent actually give this in writing?

I have come across a different variation of this where they don't consider an offer without speaking to their financial adviser but never where you HAD to commit to actually using them!

Hi, thank you for your reply. No communication was provided in writing, all via phone. Every time I send them an email, they call me back to discuss. 

1. Ask EA to confirm in writing. 
2. Then say you're willing to consider the in house broker and ask for another viewing (ideally with the vendor present)
3. Speak to the vendor, say you like the house, you trust your offer is accepted and that you hope a silly thing like which broker won't hold things up (your one is very efficient, EA probably wants commission etc)

Otherwise has the sales memo been sent, and has your solicitor made contact with the seller's solicitor? if so, repalce with 

1. Ask EA to confirm in writing. 
2. Forward to your solicitor, and ask them to email the vendor's solicitor saying you trust your offer is accepted and that you hope a silly thing like which broker won't hold things up (your one is very efficient, EA probably wants commission etc)

Thanks for that. I think it is too late for another viewing but will try to get it clarified via solicitors. I was wondering if there is a point of submitting a complaint? as they clearly breached the Code of Practice

saajan_12

evymay said:

saajan_12 said:

evymay said:

lonibra said:

This is absolute BS. They can't do that. Did the Estate Agent actually give this in writing?

I have come across a different variation of this where they don't consider an offer without speaking to their financial adviser but never where you HAD to commit to actually using them!

Hi, thank you for your reply. No communication was provided in writing, all via phone. Every time I send them an email, they call me back to discuss. 

1. Ask EA to confirm in writing. 
2. Then say you're willing to consider the in house broker and ask for another viewing (ideally with the vendor present)
3. Speak to the vendor, say you like the house, you trust your offer is accepted and that you hope a silly thing like which broker won't hold things up (your one is very efficient, EA probably wants commission etc)

Otherwise has the sales memo been sent, and has your solicitor made contact with the seller's solicitor? if so, repalce with 

1. Ask EA to confirm in writing. 
2. Forward to your solicitor, and ask them to email the vendor's solicitor saying you trust your offer is accepted and that you hope a silly thing like which broker won't hold things up (your one is very efficient, EA probably wants commission etc)

Thanks for that. I think it is too late for another viewing but will try to get it clarified via solicitors. I was wondering if there is a point of submitting a complaint? as they clearly breached the Code of Practice

Just a way of trying to contact the actual vendors. People do view on the day before exchange, so its not unreasoanble as part of due dilligence (as opposed to a speculative deciding whether to offer)