Inherited property "unmortgagable" advice

eddddy

crazyoldmaurice said:

All the estate agent was told was it was due to "property condition".... apparently. That's all they said the buyer told them and that's all they are entitled to know according to estate agents.

The Estate Agent isn't "entitled" to know anything.

But it's just basic common sense for the Estate Agent to ask. 

When a buyer says "I'm withdrawing my offer due to the property condition" - any sensible human being would respond with "What is it about the property condition that is a problem?"


As I said, if the buyer doesn't give a straight answer to that question, I would strongly suspect the buyer is fibbing or hiding something.

So somebody is messing you about - it's either the buyer or the Estate Agent or both. So it's probably a good idea that you've given the Estate Agent notice.

eddddy

crazyoldmaurice said:

I'm fuming as I sent the EA an email stating I didn't agree with the property being cash only and also gave notice to cancel the contract (21 days I have to wait before another EA can market)

And I've seen last night they have re-listed the property to rightmove and have also put cash buyers only on the listing!!! So petty!!! I didn't realise they were allowed to make the listing live again without my approval.

It's a tricky question. It depends on the facts. And it sounds like you have not been told the precise facts.

If two mortgage applications for the property have failed because of the property's condition - the Estate Agent has a legal duty to warn future prospective buyers about that.

Otherwise, a prospective buyer might spend £1000+ on mortgage application fees, legal fees, survey fees, etc - and then lose it all when the mortgage company refuse to lend on the house.

That's one reason why it's important for the Estate Agent to find out precise reasons why the buyers withdrew from the purchase.


To be honest, your next Estate Agent should ask you if any buyers have dropped out and why - because they will have the same legal duty to warn future prospective buyers about any mortgageability problems. 


For the moment, I guess you could try the tactic of saying to the current Estate Agent: "I've decided not to sell the property anymore. So please remove the listing."

crazyoldmaurice

eddddy said:

crazyoldmaurice said:

I'm fuming as I sent the EA an email stating I didn't agree with the property being cash only and also gave notice to cancel the contract (21 days I have to wait before another EA can market)

And I've seen last night they have re-listed the property to rightmove and have also put cash buyers only on the listing!!! So petty!!! I didn't realise they were allowed to make the listing live again without my approval.

It's a tricky question. It depends on the facts. And it sounds like you have not been told the precise facts.

If two mortgage applications for the property have failed because of the property's condition - the Estate Agent has a legal duty to warn future prospective buyers about that.

Otherwise, a prospective buyer might spend £1000+ on mortgage application fees, legal fees, survey fees, etc - and then lose it all when the mortgage company refuse to lend on the house.

That's one reason why it's important for the Estate Agent to find out precise reasons why the buyers withdrew from the purchase.


To be honest, your next Estate Agent should ask you if any buyers have dropped out and why - because they will have the same legal duty to warn future prospective buyers about any mortgageability problems. 


For the moment, I guess you could try the tactic of saying to the current Estate Agent: "I've decided not to sell the property anymore. So please remove the listing."

Thanks for this.

A new estate agents I've been talking with who have viewed the property feel that there is something going on as to them it seems fine. They have just sold a property in a local village in a similar condition.

I would be happy to go to a cash buyer etc I just dont want to label it as cash only based on only one person's issues with having a mortgage retracted, I feel the retracted offer is what is causing me to doubt it all.

I'm worried that if I say I am no longer selling they will try to charge me a withdrawal fee now they have relisted it again. As I know waiting the 21 day period I wouldn't be charged.

housebuyer143

crazyoldmaurice said:

eddddy said:

crazyoldmaurice said:

I'm fuming as I sent the EA an email stating I didn't agree with the property being cash only and also gave notice to cancel the contract (21 days I have to wait before another EA can market)

And I've seen last night they have re-listed the property to rightmove and have also put cash buyers only on the listing!!! So petty!!! I didn't realise they were allowed to make the listing live again without my approval.

It's a tricky question. It depends on the facts. And it sounds like you have not been told the precise facts.

If two mortgage applications for the property have failed because of the property's condition - the Estate Agent has a legal duty to warn future prospective buyers about that.

Otherwise, a prospective buyer might spend £1000+ on mortgage application fees, legal fees, survey fees, etc - and then lose it all when the mortgage company refuse to lend on the house.

That's one reason why it's important for the Estate Agent to find out precise reasons why the buyers withdrew from the purchase.


To be honest, your next Estate Agent should ask you if any buyers have dropped out and why - because they will have the same legal duty to warn future prospective buyers about any mortgageability problems. 


For the moment, I guess you could try the tactic of saying to the current Estate Agent: "I've decided not to sell the property anymore. So please remove the listing."

Thanks for this.

A new estate agents I've been talking with who have viewed the property feel that there is something going on as to them it seems fine. They have just sold a property in a local village in a similar condition.

I would be happy to go to a cash buyer etc I just dont want to label it as cash only based on only one person's issues with having a mortgage retracted, I feel the retracted offer is what is causing me to doubt it all.

I'm worried that if I say I am no longer selling they will try to charge me a withdrawal fee now they have relisted it again. As I know waiting the 21 day period I wouldn't be charged.

Yeah, unless there is a proven issue I would be reluctant to tell people it's an issue with the property. One person telling you that's why with no detail seems dubious to me. 
If anyone asks I would simply share that the previous buyer couldn't get a mortgage and leave it at that. Until you get concrete evidence of what the problem is, I don't think you can assume it's the property and not that buyer.

eddddy

housebuyer143 said:

Yeah, unless there is a proven issue I would be reluctant to tell people it's an issue with the property. One person telling you that's why with no detail seems dubious to me. 

If anyone asks I would simply share that the previous buyer couldn't get a mortgage and leave it at that. Until you get concrete evidence of what the problem is, I don't think you can assume it's the property and not that buyer.

But just to play devil's advocate...

It's not really the seller's decision about what information the Estate Agent discloses or doesn't disclose. By law the Estate Agent must disclose material information - even if they are not asked.

If the Estate Agent fails to tell a prospective buyer material information (e.g. about mortgageability)...

• It's the Estate Agent who can be prosecuted

• It's the Estate Agent who can be ordered to pay compensation to the prospective buyer

So the Estate Agent won't follow the seller's wishes if that means the Estate Agent is breaking the law.

The best plan is to discuss the facts with the new Estate Agents, and ask them what they will say to new prospective buyers. And agree an approach that you and the new Estate Agent are both happy with - before signing any contract. (And it sounds like the OP has done that.)

crazyoldmaurice

eddddy said:

housebuyer143 said:

Yeah, unless there is a proven issue I would be reluctant to tell people it's an issue with the property. One person telling you that's why with no detail seems dubious to me. 

If anyone asks I would simply share that the previous buyer couldn't get a mortgage and leave it at that. Until you get concrete evidence of what the problem is, I don't think you can assume it's the property and not that buyer.

But just to play devil's advocate...

It's not really the seller's decision about what information the Estate Agent discloses or doesn't disclose. By law the Estate Agent must disclose material information - even if they are not asked.

If the Estate Agent fails to tell a prospective buyer material information (e.g. about mortgageability)...

• It's the Estate Agent who can be prosecuted

• It's the Estate Agent who can be ordered to pay compensation to the prospective buyer

So the Estate Agent won't follow the seller's wishes if that means the Estate Agent is breaking the law.

The best plan is to discuss the facts with the new Estate Agents, and ask them what they will say to new prospective buyers. And agree an approach that you and the new Estate Agent are both happy with - before signing any contract. (And it sounds like the OP has done that.)

I totally agree, and if it had been 3 outright rejections for a mortgage I'd be less suspicious. Its the fact a mortgage offer was made and later retracted which was also apparently down to "property condition". Surely the condition of the property would be picked apart before any offer made and the only real thing would be underwriting and the buyers own credentials that determine the retraction?

Because the EA doesn't know more than a rejection reason being "property condition" and no further details it just seems a reach to start talking about cash buyers/auctions when it seems to tick the boxes to be able to get a mortgage on it. 

If I was given a decent cash offer I would take it and it would be quicker, I just dont want to have to deal with that particular EA ever again after he has gone ahead and realisted an updated listing without my approval and specific instructions that I didn't want it marked as cash only buyers when this is not a certainty. Tempted to get a full survey.

eddddy

crazyoldmaurice said:

I'm worried that if I say I am no longer selling they will try to charge me a withdrawal fee now they have relisted it again. As I know waiting the 21 day period I wouldn't be charged.

I've seen dozens of Estate Agency contracts - but I've never seen one that says that. Typically...

• If the contract says there is a withdrawal fee, you will have to pay it whether you withdraw it from sale now or give 21 days notice.

• If the contract doesn't mention a withdrawal fee, you don't have to pay a fee, whether you withdraw the property from sale now or give 21 days notice

But read your contract to check.

But saying that you are withdrawing the property from sale doesn't necessarily mean they will remove the listing straight away. But obviously, they shouldn't arrange any more viewings.

NeverTooLate

Is an estate agent really allowed to change the wording of the rightmove advert without the client approving it?

deano2099

Is it non-standard construction by any chance? Metal frame, etc? 
We're dealing with this at the moment, there's no actual problem with the property, but the construction type is rare - so lenders are less keen to lend on it. Used to be there were just a couple of lenders who offered mortgages on those properties but even they've become reluctant over the past 6-12 months as rates have gone up.

eddddy

NeverTooLate said:

Is an estate agent really allowed to change the wording of the rightmove advert without the client approving it?

Well...  I suppose the estate agent would argue that they are breaking the law if they don't change the advert.

But the Property Ombudsman's Code of Practice says that "written details of a property must be agreed with the seller to confirm that the details are accurate" - but it doesn't say that the seller can veto information, if it's accurate (or required by law)

So the argument would be whether the information is accurate or not.