Advice on resolution of estate agent error

notreallysure1

So my mum put her house up for sale for £360k. She had lots of viewings a few offers in the first week. Then a week or 2 later 2 sets of people wanted viewings. The one we only knew about because the neighbour told us as he was friends with them.

The estate agent wouldn't give them a viewing as apparently they couldn't accommodate their times.
So my mum arranged a viewing with these people and they were excited and we expected an offer the next day. But nothing.

Roll on 2 weeks later it turns out that they put an asking price offer in. We have seen the emails to the estate agent and where she then asked if my mum had turned down the offer. The estate agent said that is correct it had been turned down.

We did not know about this offer. it was never put forward.

Now we have obviously approached the estate agent about this and they are shocked and the lady has been sacked and they're really upset by it all.

The issue now is how to resolve things? The buyers no longer want the property because of how they were treated and looked elsewhere and found something else.

The listing of my mum's house is now tired and old and needs a revamp to generate interest. Only real way to do this is to lower the price which she has agreed to do. It's now been reduced to £350k.

What should we be asking from the estate agent in terms of resolution? Compensation? 

lisyloo

Ask them to put her back into the position she would have been if they'd passed on the offer (which is a legal obligation I believe).
That's difficult right now as the house hasn't sold so you don't know what the "loss" is.

I'd put in a formal complaint now though stating you'll be seeking compensation when the final loss is known.

Hoenir

notreallysure1 said:

What should we be asking from the estate agent in terms of resolution? 

The employee concerned has been dismissed due to their conduct. Seems that the matter has been taken very seriously and dealt with in the proper manner. 

DE_612183

Not sure why you'd want to reduce the price if it sold at that previously - as @lisyloo said - ask the Estate Agents what they will do to provide compensation should the property be sold for lower than the full asking price.

They may however not want to do this - and could point out that an offer may not end up as a completed sale so there is no loss.

eddddy

Based on what you say, the estate agent has broken the law...
https://www.legislation.gov.uk/uksi/1991/1032/schedule/3/paragraph/2/made

What explanation did the firm give for their employee's actions?

(To be clear - the firm is probably liable for their employee's actions.)
 


Being a bit cynical...

• have they really sacked the employee concerned?

• some estate agents have been 'found guilty' of failing to pass on offers where the buyer was refusing to use the estate agents mortgage and conveyancing services. (Although that usually happens when there are multiple offers.)

So is it possible that the person concerned was following the firm's 'unwritten rules' by not passing on the offer?

What 'type' of estate agent firm is it? A large chain with 'aggressive' sales techniques? A local independent?



In terms of compensation, as others say, you should be claiming your financial losses. Potentially the difference between the offer that wasn't forward to you, and the final selling price that you achieve.

But I suspect the estate agent's argument will be that there was no guarantee that the 'non-forwarded' offer would have gone to completion.

Albermarle

eddddy said:

Based on what you say, the estate agent has broken the law...
https://www.legislation.gov.uk/uksi/1991/1032/schedule/3/paragraph/2/made

What explanation did the firm give for their employee's actions?

(To be clear - the firm is probably liable for their employee's actions.)
 


Being a bit cynical...

• have they really sacked the employee concerned?

• some estate agents have been 'found guilty' of failing to pass on offers where the buyer was refusing to use the estate agents mortgage and conveyancing services. (Although that usually happens when there are multiple offers.)

So is it possible that the person concerned was following the firm's 'unwritten rules' by not passing on the offer?

What 'type' of estate agent firm is it? A large chain with 'aggressive' sales techniques? A local independent?



In terms of compensation, as others say, you should be claiming your financial losses. Potentially the difference between the offer that wasn't forward to you, and the final selling price that you achieve.

But I suspect the estate agent's argument will be that there was no guarantee that the 'non-forwarded' offer would have gone to completion.

I would expect there will have to be some negotiation/compromise  on both sides, to avoid a potentially costly legal dispute.
The OP might have to be happy with the EA waiving their sales fee for example.

Smalltownhypocrite

eddddy said:

Based on what you say, the estate agent has broken the law...
https://www.legislation.gov.uk/uksi/1991/1032/schedule/3/paragraph/2/made

What explanation did the firm give for their employee's actions?

(To be clear - the firm is probably liable for their employee's actions.)
 


Being a bit cynical...

• have they really sacked the employee concerned?

• some estate agents have been 'found guilty' of failing to pass on offers where the buyer was refusing to use the estate agents mortgage and conveyancing services. (Although that usually happens when there are multiple offers.)

So is it possible that the person concerned was following the firm's 'unwritten rules' by not passing on the offer?

What 'type' of estate agent firm is it? A large chain with 'aggressive' sales techniques? A local independent?



In terms of compensation, as others say, you should be claiming your financial losses. Potentially the difference between the offer that wasn't forward to you, and the final selling price that you achieve.

But I suspect the estate agent's argument will be that there was no guarantee that the 'non-forwarded' offer would have gone to completion.

When we started looking to buy we had a complete nightmare with one estate agent, they kept INSISTING we HAD too book with their mortgage advisor but we are CASH buyers. They booked us in despite us saying no multiple times so I phoned the mortgage advisor and cancelled it. They then cancelled all our viewings and refused to speak to us (basically 'blacklisted' us). Even when I went in branch they acted like they couldn't see me... it was the most bizarre and childish thing I have ever encountered.

They also constantly harass us with 'house valuation' appointment that I have to keep cancelling despite having told them its not our house (we rent) and after that they even some how tracked down my husbands parents who are homeowners and booked in a valuation on their house (they have never contacted this company and have no interest in moving).

They are probably the biggest name company we have dealt with too and they are shockingly unprofessional, when they kept phoning and I told them we had an offer accepted for a house with a different EA they barrated us and slagged off the house/area. That was a YEAR ago and we still get them sending mortgage and valuation booking through that we now just refuse to engage with. 

I don't get why they have spent 2 years wasting their own time just to seemingly have a vendetta against us, its really odd. I know they supposedly get paid per referral but surely not for all these cancellations.

notreallysure1

DE_612183 said:

Not sure why you'd want to reduce the price if it sold at that previously - as @lisyloo said - ask the Estate Agents what they will do to provide compensation should the property be sold for lower than the full asking price.

They may however not want to do this - and could point out that an offer may not end up as a completed sale so there is no loss.

The estate agent said that there was no interest after this - which as far as we know, is true. So they said she needed to reduce the price.

eddddy

Albermarle said:

I would expect there will have to be some negotiation/compromise  on both sides, to avoid a potentially costly legal dispute.

All estate agents are members of redress schemes. Mostly the The Property Ombudsman Service, and occasionally the Property Redress Scheme.

It's free for consumers to complain to those schemes, and you don't generally need a solicitor. So there are no costs for the person complaining.

The schemes will do the investigations - including gathering evidence etc.

If appropriate, the schemes can tell estate agents to pay compensation up to a max of £25k.

notreallysure1

Albermarle said:

I would expect there will have to be some negotiation/compromise  on both sides, to avoid a potentially costly legal dispute.
The OP might have to be happy with the EA waiving their sales fee for example.

There are no estate agent fees as she is buying a new build and the builders are paying their fees so can't negotiate on that. 

notreallysure1

eddddy said:

Being a bit cynical...

• have they really sacked the employee concerned?

• some estate agents have been 'found guilty' of failing to pass on offers where the buyer was refusing to use the estate agents mortgage and conveyancing services. (Although that usually happens when there are multiple offers.)

So is it possible that the person concerned was following the firm's 'unwritten rules' by not passing on the offer?

What 'type' of estate agent firm is it? A large chain with 'aggressive' sales techniques? A local independent?



In terms of compensation, as others say, you should be claiming your financial losses. Potentially the difference between the offer that wasn't forward to you, and the final selling price that you achieve.

But I suspect the estate agent's argument will be that there was no guarantee that the 'non-forwarded' offer would have gone to completion.

Yes I believe they have sacked her. She is no longer there, the estate agent seem genuinely mortified. I would have thought if it was something in the contract re viewers needing to use their advisors etc they would have pointed this out and not got rid of her.

Type of estate agent is a large local one - several offices in neighbouring areas. I have spoken to the MD who founded it about 10 years ago, as well as two of the managers. I think they want to sell the house quickly and that's another reason they've suggested reducing it.

They've not offered an explanation - whether there's something fraudulent or carelessness I don't know. We've said we're concerned more has been missed - other people who wanted to view possibly other offers etc. They have said they are looking into all emails and phone calls as everything is recorded.

They can't apologise enough and I do believe they are genuine and that this was a rogue woman who worked there, for whatever reason she had!