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AIBU?

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Original poster

Is this behaviour legal?

24 replies

Purplesheep2023 · 13/06/2023 21:48

Put in an offer for a house last week- had a few days of negotiation on the price and finally settled on asking price last Friday. Estate agent said sellers were instructing solicitors and we should hear on Monday morning. Told our solicitors etc.

Spent the weekend celebrating and then Monday morning we were told that the sellers had accepted a second offer over the weekend from close friends who were cash buyers for over asking price and were taking that. And our accepted offer was now rejected. Obviously so disappointed!!

Thought something sounded odd so popped note through the sellers letterbox and the seller has called back to say that they were still open to negotiation and the 2nd offer wasn’t from a friend but via the agent!

we think this was a ploy from the agent to get us to buy another house they are also selling.

surely this is illegal? Or are we naive to the unscrupulous EA ways?!

YABU = get a grip, this is standard EA behaviour

YANBU = this is defo illegal

OP posts:
OrwellianTimes · 13/06/2023 21:50

Not sure about the legalities but I wouldn’t be in a hurry to buy a house off them!

WhiteFire · 13/06/2023 21:53

I don't think it would be illegal, if you are in England nothing is binding until contracts are exchanged so your offer isn't protected as such.

Morally it is the pits though.

AnotherDelphinium · 13/06/2023 21:55

I’m not sure if it’s illegal, but it’s pretty shifty behaviour from the estate agent. Can you get them to put their lies into an email?

“Hi, sorry, was shocked by the info earlier and didn’t completely take it all in, did you say the new offer is from the seller’s friends who are cash buyers, and they’re taking it because it’s higher, because it’s a cash offer or because they’re friends? Just so we can understand our position and consider whether to increase our offer. Thanks, purplesheep”

What did the seller say when you spoke to them? I’d be a bit distrustful if an agent had done that and a previous offerer could provide written evidence, otherwise it’s just a he said/she said scenario.

Also, just be aware that in the English housing market you’ve not actually bought a house until completion. It can fall through (and regularly does!) at any stage, and you’ll likely lose all costs paid to that point.

Original poster
Purplesheep2023 · 13/06/2023 22:08

So interestingly the estate agent has put into an email that the house was sold to a close friend…
which the seller told me on the phone was untrue- seller said they just wanted max price possible for the house. So when EA came back to us with the information that the house was sold to friends who were cash buyers, our offer was rejected, we understood that was it and case closed- they booked us in for second viewing of the second house at the same time. No doubt they want to sell both houses and thought this was the best way to secure two sales.
only after reflecting about the strange timing of everything did we realise something else probably happened.
Honestly quite shocked by the whole thing!

OP posts:
caringcarer · 13/06/2023 22:47

I'd not be buying from that EA. There must be others close by.

Ophy83 · 13/06/2023 22:53

Are they registered with the property ombudsman? If so make a complaint

ComtesseDeSpair · 14/06/2023 07:50

The agent is legally bound to pass on any offers made, so they had no choice but to tell the sellers that another buyer had made an offer even though yours had been provisionally accepted. Any story around them being a friend is largely irrelevant detail.

Simplyfedup · 14/06/2023 08:07

ComtesseDeSpair · 14/06/2023 07:50

The agent is legally bound to pass on any offers made, so they had no choice but to tell the sellers that another buyer had made an offer even though yours had been provisionally accepted. Any story around them being a friend is largely irrelevant detail.

It really isn't.
Op, if they are a member of the TPO then you can contact the ombudsman. I think however that they would require that you go through the agents complaints procedure first. They deliberately misled you to avoid you making a higher offer. The seller should be pretty pissed off too.

Twobyfour · 14/06/2023 08:10

It’s certainly unethical and adds to the reputation estate agents have for lying.

Zebracrossings · 14/06/2023 08:11

Sadly once the offer is accepted the EA know your budget and are probably trying to earn two commissions. It's really unfair

Aprilx · 14/06/2023 08:19

I honestly cannot see what the issue is here and I certainly cannot see any ombudsman complaint. Although I don’t know why the estate agent felt the need to tell you that a friend had put in a better offer. But regardless, the EA is obliged to forward all offers to the seller, the seller had a better offer and took it. The estate agent then suggested another house for you to look at. How is this wrong? 🤷‍♀️

Whataretheodds · 14/06/2023 08:23

Maybe they're close friends of the agents rather than the vendors.

lljkk · 14/06/2023 08:32

Zebracrossings · 14/06/2023 08:11

Sadly once the offer is accepted the EA know your budget and are probably trying to earn two commissions. It's really unfair

how would EA earn 2 commissions ?

TheFlis12345 · 14/06/2023 08:32

If I was the vendor I would be furious that the agent lied in a way that discouraged the OP from increasing their offer!

TheFlis12345 · 14/06/2023 08:33

lljkk · 14/06/2023 08:32

how would EA earn 2 commissions ?

Show quote history

They have sold the house the OP wanted to buy to someone else and are pushing the OP towards a different property.

Tinkerbyebye · 14/06/2023 08:35

Aprilx · 14/06/2023 08:19

I honestly cannot see what the issue is here and I certainly cannot see any ombudsman complaint. Although I don’t know why the estate agent felt the need to tell you that a friend had put in a better offer. But regardless, the EA is obliged to forward all offers to the seller, the seller had a better offer and took it. The estate agent then suggested another house for you to look at. How is this wrong? 🤷‍♀️

Because the EA has lied in order to get two houses sold. They lied it was friends ( it wasn’t) and a cash offer and the seller was now not interested in them going back to make an offer ( they obvs were) and tried to push a second viewing on another house

shoddy behaviour

Balloonmoons · 14/06/2023 08:38

I agree it sounds shady, if they had put a higher offer forward you should have had the opportunity to put a counter offer in, they obviously said it was sold to a cash buyer who is a friend of the sellers as this would seem like a buyer you wouldn't be able to compete with and so wouldn't bother trying. Whether it's illegal I don't know, but I would also assume the same as you, that yes they had another offer on the house you wanted and wanted you to go for the one you aren't as fussed on so they lied to you.

CleanCar · 14/06/2023 08:39

Or are the EA hoping youll offer more on the original house so it given them more profit?? Hmm shady behaviour imo

MayThe4th · 14/06/2023 08:40

I don’t understand why the agent would have said that the offer was from a close friend. They have in fact dissuaded the OP from putting in a higher offer.

Clearly there must have been an offer or the agent couldn’t have passed it on. So it’s hard to see what their agenda was really.

Unless there never was a second offer (doubtful) the ombudsman won’t be interested.

Question is, do you like the second house? If so go and look at it, if not then go and find somewhere else. This house obviously isn’t on the table any more.

And I would be careful about increasing your offer on the say-so of the vendors. Vendors can be equally duplicitous.

Twobyfour · 14/06/2023 08:50

It’s a buyers market so some of these estate agents tricks to up prices won’t fly at the moment.

Readyplayerthr33 · 14/06/2023 08:54

MayThe4th · 14/06/2023 08:40

I don’t understand why the agent would have said that the offer was from a close friend. They have in fact dissuaded the OP from putting in a higher offer.

Clearly there must have been an offer or the agent couldn’t have passed it on. So it’s hard to see what their agenda was really.

Unless there never was a second offer (doubtful) the ombudsman won’t be interested.

Question is, do you like the second house? If so go and look at it, if not then go and find somewhere else. This house obviously isn’t on the table any more.

And I would be careful about increasing your offer on the say-so of the vendors. Vendors can be equally duplicitous.

Because the have another house they are trying to sell to the OP.

This current house got another higher offer. If they told the OP that it was still open for negotiation then OP might increase her offer and it could be accepted. They would sell one house.

If they tell the OP that the sale is final and the seller won’t negotiate, but book her in to go view another house they’re selling and pusher her towards that one, then they’d sell the original house plus this other house. Two sales.

diddl · 14/06/2023 08:59

Isn't he point though that the EA is passing on offers after the Op's was accepted?

Should this have happened or should the house have been taken off the market?

Kiwano · 14/06/2023 08:59

Also, just be aware that in the English housing market you’ve not actually bought a house until completion. It can fall through (and regularly does!) at any stage, and you’ll likely lose all costs paid to that point.

Not true. Once contract are exchanged, the sale is binding. In the unlikely event that it falls through after that, the person at fault is liable for all costs.

lemoncurd1995 · 20/07/2023 07:39

Not illegal no, its called gazumping. Although it should be illegal!

However the follow up from the EA sounds dodgy and either there was no 2nd offer at all and they are just trying to get you to raise your offer or you are being invited to a bidding war.

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