Estate agent responsibility in advertising

rustybloke425

Hi all, been lurking for ages but this is my first post. We are in the process of buying our first home. Our first one fell through due to spray foam and wet rot in the roof. Seller didn't want to do anything about it and mortgage company wouldn't touch it. 

This property has just gone back on the market advertised as "perfect for first time buyers", doesn't mention anything about the roof. Just reduced by 5k. Is this allowed? Surely if they know this they have to inform potential buyers? I don't want anyone else wasting time and money on the place like we did... 

UnderOffer

Honestly, just forget about it and move on, don’t waste time. Unfortunately there are always houses listed which are unmortgagable and potential buyers go through all the initial steps only to find out there is a huge problem, these houses continue to be marketed, as at some point they will find a buyer, cash, or investor who can proceed. 

Good luck with your future purchase. 

Bookworm105

the fact you could not get a mortgage does not mean the next person can't
the advert does not need to reflect that 

rustybloke425

Thanks for the replies, wow that's kind of off putting. We have a really weird house buying system in this country. 

Let's hope the new vendor isn't hiding anything from us I guess 🙄

eddddy

Could the spray foam have been removed?

As far as I'm aware, no mortgage lenders will accept a property with spray foam.


If the foam is still there, the Estate Agent is required by law (Consumer Protection from Unfair Trading Regulations 2008) to disclose material information to prospective buyers - and the spray foam and unmortgageabilty would almost certainly be classed as material information.

Also, the material information should be disclosed in a timely manner - the Property Ombudsman has said that means before a prospective buyer spends time and money travelling to a viewing.


But... a rational estate agent would want to disclose it anyway for the estate agent's own benefit. The estate agent won't want to waste time and money doing viewings, negotiating offers, progressing a sale etc - if it's going to fall through because of the spray foam / unmortgageabilty.

rustybloke425

eddddy said:

Could the spray foam have been removed?

Partially, badly, causing more damage to roof structure in the process. 

As far as I'm aware, no mortgage lenders will accept a property with spray foam.

This seems to be the answer I found too. 

If not, the Estate Agent is required by law (Consumer Protection from Unfair Trading Regulations 2008) to disclose material information to prospective buyers - and the spray foam and unmortgageabilty would almost certainly be classed as material information.

this is very interesting, but I don't know if I can prove they knew that before our survey.. 


But... a rational estate agent would want to disclose it anyway for the estate agent's own benefit. The estate agent won't want to waste time and money doing viewings, negotiating offers, progressing a sale etc - if it's going to fall through because of the spray foam / unmortgageabilty.

This was the major issue. The EA is anything but rational. Even verging on rude and dismissive. Ended up completely ignoring us and our solicitor. 

Oh well, can't be helped.. we are out of the deal now and had an offer accepted on a new place which we prefer, I just wanted to see if there was anything I could do to stop another poor naive couple like us getting stuck with fees/stress for nothing... 

rustybloke425

Sorry Eddy. Just realised what you meant. I doubt they have removed it since. We offered to continue at full asking price if they fully removed the foam and got a quote for remedial works required. Absolute refusal to budge. 

born_again

rustybloke425 said:

Thanks for the replies, wow that's kind of off putting. We have a really weird house buying system in this country. 

Let's hope the new vendor isn't hiding anything from us I guess 🙄

Spray Foam is just lenders saying no. Same as some will say no to certain EPC bands, or if you live on a flood plain. 

Cash buyer would have no problems & might not care about spray foam.

Exodi

rustybloke425 said:

Thanks for the replies, wow that's kind of off putting. We have a really weird house buying system in this country. 

Let's hope the new vendor isn't hiding anything from us I guess 🙄

I regret to inform it's commonplace.

Got damp stains on the ceiling/walls? Paint over them before you list the house.

Downstairs toilet leaking? Well you're selling anyway so just be sure to mop up before viewings.

Boiler on its way out? Future buyers problem.

Because this sort of practice is so rampant, I would go into the house-buying process fully expecting that you will need to get a few tradesman in straight away (I certainly did, even despite having a survey).

People seem to have different mindsets when they are selling. It will be interesting to see how you feel if your house is on under offer and you notice a leak starting to develop.

I do agree though, it doesn't seem fair that unsuspecting buyers can be stitched up with survey costs ad infinitum by a buyer that happens to forget to mention that the roof needs replacement. Obviously in the UK we are only legally obliged to complete a transaction at the very end of a process, other countries (like France for example) this obligation occurs at the start (which has its own advantages and disadvantages).

Albermarle

born_again said:

rustybloke425 said:

Thanks for the replies, wow that's kind of off putting. We have a really weird house buying system in this country. 

Let's hope the new vendor isn't hiding anything from us I guess 🙄

Spray Foam is just lenders saying no. Same as some will say no to certain EPC bands, or if you live on a flood plain. 

Cash buyer would have no problems & might not care about spray foam.

Although they might care about the consequence of having spray foam.

 Our first one fell through due to spray foam and wet rot in the roof.

BarelySentientAI

rustybloke425 said:

This property has just gone back on the market advertised as "perfect for first time buyers", doesn't mention anything about the roof. Just reduced by 5k. Is this allowed? Surely if they know this they have to inform potential buyers? I don't want anyone else wasting time and money on the place like we did... 

Yes, of course it's allowed.  You can't seriously think the advert should say "unmortgageable property, complete wreck, hidden problems, don't buy this".

When they really are a complete wreck, you see things like "perfect investment property" or "potential for development".

The EA does, as others have said, have to disclose things that they know about it.  Doesn't mean it has to be the headline on the advert though.