How can you confirm the buyer is financially qualified to proceed

20122013

https://forums.moneysavingexpert.com/discussion/comment/81954125#Comment_81954125

Hi - the agent said the buyer is not using their broker.

My concern is that estate agent is no honest ..I am finding this out as I go along (not great)

I had found out that the buyer was not verified by the agent until after the offer was accepted (red flag) and the buyer viewed and registered on the day even so they should have been vetted before putting the offer to me

According to the agent - they had said that the the buyer has a mortgage in principle then they are a cash buyer (in error) and then I found out they had cancelled the appointment and booked another appointment (to me red flags, for whatever reason they are changing - in the long run it seems the mortgage will be costing more due to current climate. and some of the mortgage products have been withdrawn and rates increasing.

It is not good to assume but I am assuming that the Buyer is delaying the sale to buy more time to sort themselves out. What the agent is saying adds up, does it?

20122013

https://forums.moneysavingexpert.com/discussion/comment/81954296#Comment_81954296

thanks for sharing - the agent had said that they have offered the buyer their own broker but the buyer had declined (I am thinking maybe the agent thinks that the buyer realised they are not able to get the mortgage with the first appointment so changed to another ?) I am tempted to contact the buyer directly to ask (but resisting not to)

20122013

https://forums.moneysavingexpert.com/discussion/comment/81954436#Comment_81954436

I have accepted the offer a month ago, according to the agent the buyer has instructed a solicitor. Also the agent keeps changing the amount the deposit the buyer has..The only other thing I can think of is the buyer is trying to save on fees. if that is the case then they may carry on and wait to the rate drops etc

RelievedSheff

https://forums.moneysavingexpert.com/discussion/comment/81954675#Comment_81954675

Has a memorandum of sale been issued?

If not I would be instructing the agent to remarket the property by now. A month is plenty of time to get the information required for this in order.

20122013

@Edddy - please see my comments in bold

May I check I can use the template below, now instead of waiting for the sale to fall through?

20122013 said

I would like to know 'How to confirm whether the buyer is financially qualified to proceed?'

If the buyer is a 'first time buyer' (or has no property to sell) an estate agent would normally ask to see…

• Bank statements - to prove the buyer has the deposit
• Mortgage agreement in principle - which indicates that the buyer could get a mortgage

According to the agent; this is not a first time buyer and not in a chain. I asked the agent for proof of financials and was told that their broker has not received those information, either. If that is the case, how can the agent tell me that the Buyer has passed their financial checks without showing any financial proof ? and be a proceedable buyer?

20122013 said

As I now have my doubts about this sale…

Is your estate agent paid on exchange/completion?

If so, they should be as keen as you are to get your property to exchange of contracts - so they get their fee.

So even if your buyer is a bit 'flaky', presumably the estate agent thinks they're the best bet for getting the property to exchange of contracts quickly.

(But it might be different if you paid the estate agent in advance. Then they have no incentive to get to exchange of contracts.)

My agent is no sale no fee. Sole agent rights

20122013 said

As I am no longer tie in with this agency and I do not feel this buyer is ready to proceed (and the solicitors have not had any communications - so the Buyer should not have a big bill) So when shall I end my agreement?

You can give notice of termination of the estate agent's contract now, if you want - most contracts require 2 or 4 weeks written notice.

Terminating the estate agent's contract shouldn't be a problem - but think more carefully about withdrawing from the sale.

i.e. The sale to your current buyer can continue, even though you've ended the estate agent's contract. And you'd have to pay the estate agent if the current buyer completes.

The notice and tie in periods has expired.

But if you withdraw from the sale… the estate agent might try to claim that the buyer was "ready, willing and able", and therefore demand their full fee from them.

If you want, you could try wring an email to the estate agent something like this:

"I don not believe that <name> is a ready, willing and able buyer. If you disagree please let me know, and explain your reasons.

My understanding is that:

• <name>'s solicitor has yet contacted my solicitor
• <name> doesn't yet have a mortgage agreement in principle
• <name> hasn't yet applied for a mortgage for my property
• <name. hasn't yet booked a mortgage valuation

Please address these points in your reply to me.

If I don't hear from you within 3 working days, I will assume that you agree that <name> is not a ready, willing and able buyer."

If you want, you could also add…

" Also, based on the above, I don't believe that <name> is a serious potential buyer, I wouldn't even describe them as proceedable.

Therefore I would like you to start remarketing my property, and it should remain on the market until <name> shows they are serious by booking a mortgage valuation."

Appreciate the reminder of 'withdrawing from the sale and the template' also, very helpful last point

I have asked them to carry on viewings as a backup and they have also commented not to worry about the lease reducing. These have given me the impression either they are confident this sale will go through or not willing to do what I have asked.

elsien

https://forums.moneysavingexpert.com/discussion/comment/81954660#Comment_81954660

I am another one who would never use the estate agent’s broker. It doesn’t mean anything more than that as a buyer you want to be sure that the broker and the estate agent are completely independence of each other.
Perhaps that simply occurred to your buyer after the initial appointment had been made.

20122013

https://forums.moneysavingexpert.com/discussion/comment/81954165#Comment_81954165

Yes, that is a great point, as I am confused with what the buyer can achieve by cancelling and making a new appointment.

Myci85

You can check with your solicitor if they have issued the memorandum of sale, if you don't trust the estate agent when they tell you the buyer has a solicitor. That would be one of the first things to happen, so if that hasn't been done in a month, I'd definitely make it clear to the agent that you want it to go back on the open market, and if they're not prepared to do this, you will go with another agent.

eddddy

20122013 said

The notice and tie in periods has expired.

Are you saying that you've given written notice of termination?

Just to clarify - estate agents' contracts almost always work like this:

• By default, an estate agents' contract goes on forever - it only ends when you give written notice (usually 2 weeks or 4 weeks), or the property is sold

And…

• Estate agents' contracts usually have minimum contract periods (tie-in periods) - maybe 10 weeks, 12 weeks, 16 weeks or whatever. You cannot terminate the contract (by giving written notice) until that minimum period has finished.

20122013 said

My agent is no sale no fee. Sole agent rights

Has your contract got a clause about a "ready, willing and able buyer"?

I've come across a number of 'dodgy' estate agents who claim to be "no sale, no fee", but they have "ready, willing and able buyer" clauses in their contract.

If there is no "ready, willing and able buyer" clause, you should be able to withdraw from the sale without any risk of having to pay the full fee.

(But some estate agents charge smaller withdrawal / termination fees. Check your contract.)

But just to make sure you understand…

You pay the estate agent a fee for introducing somebody… who eventually goes on to buy your property.

So you can terminate your contract with the estate agent, and they will stop trying to introduce new people.

But if the person they have already introduced goes on to buy your property - you have to pay them their fee (even if you terminated the estate agents contract weeks or months before completion).

So even if you terminate the estate agent's contract, they can still push the buyer to complete - so they get their fee.

Terminating the estate agent's contract is completely different from withdrawing from the sale. You can do either or both.

20122013 said

May I check I can use the template below, now instead of waiting for the sale to fall through?

The first part of the template is only relevant if there is a "ready , willing and able buyer" clause in the contract.

If there isn't, you can withdraw from the sale for any reason you like at any time.

But you can ask the questions posed in the template - without mentioning a "ready, willing and able buyer".

theartfullodger

So who chose this appalling agent?? I'd drop them like a hit brick.

You confirm they are liable (eventually) when your solicitor tells you the agreed funds have arrived. Until then it's a guess, and even if viable they can cancel the deal pretty much any time. It's a gamble. Anyone saying otherwise is liable.

As that great Frenchman (Proudhon) said, "Property is theft" - well, in franch.

Good Luck. If you don't like the rules try some other legislation (Scotland, France, Spain etc etc etc).