Are the EA terms on surveys a concern?

greenflower

I've been trying to buy a house for the last 9 months as a FTB. The chain for my first choice house collapsed after 5 months and since then everything has been going to bidding wars or best and final. 

I noticed for the last two houses the estate agent had added a clause asking the buyer to agree not to negotiate the price after survey.

Should this concern me?

I've only been offering what I can genuinely afford and would only renegotiate if something major came up at survey. 

kingstreet

They can put what they want but it isn't binding on you.

user1977

Like any other non-contractual term, it sounds pretty meaningless. I expect in practice if you gave them the option of lowering the price or you just walking away, they'd still consider talking to you about it.

theartfullodger

Really?  So the EA would refuse to permit you to pay more after the survey?  £5 says nah, b+LL+cks

kingstreet

It's probably pre-populated on the EA's memorandum of sale template to try to scare people into compliance.

Thrugelmir

Probably fed up with people overbidding then dropping their offer when the valuation comes in lower. Although there's no specific justification for the lower offer, 

eddddy

greenflower said:

I noticed for the last two houses the estate agent had added a clause asking the buyer to agree not to negotiate the price after survey.
 

Just to be clear - what has this clause been added to?

Is the estate agent asking you to enter into some kind of a contract (like a reservation agreement or deposit agreement) as part of making your offer?

Do you have to pay any kind of fee to the estate agent when the offer is made or accepted?


If the agent is expecting you to enter into some kind of contract as part of making your offer, you need to be very cautious. That's not usual - and you need to make sure you fully understand the terms.


But as others say, if you'd just be making a 'regular' offer on a property, you don't really have to worry about it.

greenflower

eddddy said:

greenflower said:

I noticed for the last two houses the estate agent had added a clause asking the buyer to agree not to negotiate the price after survey.
 

Just to be clear - what has this clause been added to?

Is the estate agent asking you to enter into some kind of a contract (like a reservation agreement or deposit agreement) as part of making your offer?

Do you have to pay any kind of fee to the estate agent when the offer is made or accepted?


If the agent is expecting you to enter into some kind of contract as part of making your offer, you need to be very cautious. That's not usual - and you need to make sure you fully understand the terms.


But as others say, if you'd just be making a 'regular' offer on a property, you don't really have to worry about it.

Doesn't seem to be an official binding contract just a form you fill out and submit when making an offer. 

eddddy

greenflower said:

Doesn't seem to be an official binding contract just a form you fill out and submit when making an offer. 

OK - it sounds like it's probably ok then.


People who post here have occasionally got into a bit of a mess - because they've filled in forms thinking they were just making a regular offer on a property, but the form turned out to be a bidding form for the 'Modern Method of Auction', and/or an agreement to pay the EA's fee etc.

If the form doesn't already say that the offer is "subject to contract", you can add that phrase - to ensure that you're not bound by anything you say.

jenni_fer

We were asked to confirm this many times on the last house we went to best and final on.

I stuck with the response that our offer was based on our acceptance of the house in it's current condition as far as it was reasonable to judge pre survey and that we were aware a mortgage valuation might reflect the asking price.

Totally non-binding but I think they were wary of high bids with later down valuation nonsense.