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Fraud

sensation211
sensation211 Posts: 438 Forumite
in House buying, renting & selling
Hello guys.

We have a retail/maisonette property which we were about to bring to market (via agent) when we were approached privately about it's potential availability; showed the property and verbally agreed a cash fee (they got wind of it through word of mouth and while we don't know the buyer personally they 'appear' to live locally and have a small, well-run construction company). We are now wondering if it's just a case of instructing a solicitor or if we should still have an estate agent take over (do identification/finance checks)? One agent said they would take it on for £1000 but when we asked what he'd be doing for that money he said "not a right lot to be honest"... went on to say that we couldn't do verification checks ourselves and I casually suggested £500 instead to which he agreed :rotfl:. Told him I would get back to him. Spoke to a conveyancing firm and they said that the buyers solicitor would do the checks.

Quite confused now to be honest so thought I might tap MSE wisdom, any advice welcome :T
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Comments

  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
    First Anniversary First Post
    Can't see why you need the services of an EA in your case.

    What makes you concerned about fraud?

    You appoint your solicitor, they appoint their solicitor, and they will deal with the need to perform anti money laundering checks.

    Don't make things more complicated than they need to be!
  • sensation211
    sensation211 Posts: 438 Forumite
    Surrey_EA wrote: »
    Can't see why you need the services of an EA in your case.

    What makes you concerned about fraud?

    You appoint your solicitor, they appoint their solicitor, and they will deal with the need to perform anti money laundering checks.

    Don't make things more complicated than they need to be!

    Purely through a little reading online. One page of advice lists disadvantages for arranging a private sale which includes this:

    "Estate agents check the validity and financial situation of potential buyers and have checks in place to guard against fraud. You may be leaving yourself more exposed to fraudsters by selling directly through a private sale."
  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
    First Anniversary First Post
    sensation211 wrote: »
    Purely through a little reading online. One page of advice lists disadvantages for arranging a private sale which includes this:

    "Estate agents check the validity and financial situation of potential buyers and have checks in place to guard against fraud. You may be leaving yourself more exposed to fraudsters by selling directly through a private sale."

    I think it's particularly unlikely, I really wouldn't worry.

    There's only so much an EA can do to verify the finances of a prospective buyer, but it's the solicitor who actually deals with the money.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    sensation211 wrote: »

    "Estate agents check the validity and financial situation of potential buyers and have checks in place to guard against fraud. You may be leaving yourself more exposed to fraudsters by selling directly through a private sale."

    Why pay an EA to do this when you'll also be paying a solicitor to do it properly anyway?
  • sensation211
    sensation211 Posts: 438 Forumite
    agrinnall wrote: »
    Why pay an EA to do this when you'll also be paying a solicitor to do it properly anyway?

    I agree with you, although technically I won't be paying the purchaser's solicitor anything and they're the ones who will verify the guy.
  • kingstreet
    kingstreet Posts: 38,754 Forumite
    First Anniversary Name Dropper Photogenic First Post
    I've worked for three and I can't think of a single thing an EA does to reduce fraud. Most of their work is finding a buyer then troubleshooting to get to exchange of contracts ASAP.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Name Dropper First Anniversary First Post
    What fraud are you hoping to guard against anyway? Either they come up with the money when they're meant to or they don't.
  • fezster
    fezster Posts: 485 Forumite
    Name Dropper First Post First Anniversary
    sensation211 wrote: »
    Purely through a little reading online. One page of advice lists disadvantages for arranging a private sale which includes this:

    "Estate agents check the validity and financial situation of potential buyers and have checks in place to guard against fraud. You may be leaving yourself more exposed to fraudsters by selling directly through a private sale."

    This sounds like it was written by an EA! Or perhaps some sponsored advertising :rotfl:
  • Mr.Generous
    Mr.Generous Posts: 3,368 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    EA's market property. If you have a sale agreed (and just stick with this buyer) then I will market your property for only £250, think of the saving!
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    sensation211 wrote: »
    I agree with you, although technically I won't be paying the purchaser's solicitor anything and they're the ones who will verify the guy.

    It's not a technicality, it's a fact, you will not be paying the buyer's solicitor anything. However, (s)he is a solicitor and has to comply with anti money laundering regulations. As a solicitor (s)he will be a member of The Law Society and will be regulated by the Solicitor's Regulation Authroity.

    Does anyone regulate Estate Agents in England?
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