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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Estate agent related to seller

22 replies

creamteaandfishcakes · 05/12/2023 18:33

Just had an offer on a house accepted. I later found out that the estate agent is related to the seller (sibling I believe). Not sure how I feel about it. I know that the EA works for the seller but thinking back to it feel like the EA didn’t even take our original offers to the seller, just told us they won’t accept those amounts instead, until we increased.

Not sure what I’m asking really but can’t help but feel a bit hard done by.

OP posts:

HappyHamsters · 05/12/2023 18:39

EA have to put forward all offers, maybe the seller set a minimum price. If you're not comfortable with them do you want to proceed? Any paperwork or emails yet about your offer.

Flangeosaurus · 05/12/2023 18:42

Have they declared this to you in writing? It’s defined as a connected person under the Estate Agency Act and they have to declare it on their marketing (so on the Rightmove listing) and also as part of the memorandum of sale. Were all your offers confirmed in writing. If not you need to follow their complaints process then can escalate to the ombudsman if you’re not satisfied.

Flangeosaurus · 05/12/2023 18:43

Also - if you’re not happy with the price you offered you shouldn’t have put it forward. Surely you decide what price you’re prepared to pay? If the EA has done their job well and negotiated the sale to something the seller will accept and you have said you’re happy to pay I don’t really see why you’re feeling hard done by.

mbosnz · 05/12/2023 18:45

Estate agent did this to us. Only came out because we wouldn't accept their 'she'll be jake' on an ongoing insurance claim in quake country, and we required to see the email chain. Turned out the REA was the mother of the husband part of the ownership partnership. We collapsed the sale. Too much that they were hoping not to disclose.

Original poster

creamteaandfishcakes · 05/12/2023 19:38

I don’t know, I think I will in the end. I just feel like I would have perhaps had more of a guard up had I known the EA was related to them. Held my cards closer to my chest. Both when actually viewing the property and then submitting my offer(s). And definitely preparing myself for them to try to get me to increase my opening offer, because they are related, and I would expect them to be trying extra hard to get the highest price for their family member.

OP posts:

HappyHamsters · 05/12/2023 19:41

EA never accept an opening offer if its lower than asking price

Didimum · 05/12/2023 19:46

It’s a conflict of interest and by law has to be declared.

Original poster

creamteaandfishcakes · 05/12/2023 20:27

Really? They never? I thought they had to put the offer to the seller. I offered 6% under asking.

OP posts:

Original poster

creamteaandfishcakes · 05/12/2023 20:27

This is interesting. Wonder what difference it makes now.

OP posts:

Flangeosaurus · 05/12/2023 20:29

It’s not at all true that they never accept an opening offer if it’s less than asking price. Christ. There are, obviously, some agents who still believe it’s 1982 but the majority are just doing their job. Their job is to get the best price for their client, the seller, within the parameters of the law and best practice guidelines set by the ombudsman.

BrimfulOfMash · 05/12/2023 20:30

HappyHamsters · 05/12/2023 19:41

EA never accept an opening offer if its lower than asking price

That is simply not true.

And it isn’t the agent who accepts or declines, it is the vendor.

Nousernamesleftatall · 05/12/2023 20:32

The EA works for the seller either way so I don’t see the problem. It would be different if you were the seller and his sibling was the buyer.

Original poster

creamteaandfishcakes · 05/12/2023 20:33

I don’t think it’s anywhere in writing. I will double check. The only offer confirmed in writing is the offer they took to the seller. The didn’t take my original offer, I said I need some time to think if I will increase and at that point they just kinda said okay but didn’t confirm that as an offer.

OP posts:

HardcoreLadyType · 05/12/2023 20:35

The EA is always acting for the seller. It is their job to get the best possible price for them.

Flangeosaurus · 05/12/2023 20:36

Well they’re definitely in the wrong for not confirming all your offers in writing. The connected person should have been declared at the start but they’ll probably get away with that if it’s in the memorandum of sale. Have you had that yet?

I suppose I would be personally feeling - do I want this house, am I happy with what I paid for it, what do I stand to/hope to gain by making a complaint, would it change the outcome. If you’re saying no to the first two questions then walk away

MissDollyMix · 05/12/2023 20:39

We have an estate agency in our family. It’s really common for us to use the estate agency to buy and sell our properties. To be fair, it’s more to support the family business. As buyers it doesn’t really curry any favour other than the estate agent tipping us the wink when a really nice house comes on the market. As sellers it makes no difference except we pay a lower fee.

HollowEgg · 05/12/2023 20:39

are you happy with the price
do you want to buy the house?

I’m not sure what the issue is? If you think it’s dodgy walk away.

jc12689 · 05/12/2023 20:40

Didimum · 05/12/2023 19:46

It’s a conflict of interest and by law has to be declared.

How is it a conflict of interest when the EA's acting on behalf of the seller anyway. He just trying to get the best price for the person who's paying them.

If I was selling my house and my EA was related to someone who put in an offer on my house. That would be a conflict of interest.

Obviously they're obligated to pass on offers but that's different.

LindorDoubleChoc · 05/12/2023 20:55

Of course it is a conflict of interest!

Yes, it should have been declared at the outset. This has been an EA compliance issue since at least the 1990s.

If you are unhappy about any of this process OP you can withdraw your offer.

tennesseewhiskey1 · 05/12/2023 20:56

If you don’t want to buy the house because of how you feel with this new information then pull out.

Aaron95 · 05/12/2023 20:58

HappyHamsters · 05/12/2023 18:39

EA have to put forward all offers, maybe the seller set a minimum price. If you're not comfortable with them do you want to proceed? Any paperwork or emails yet about your offer.

No they don't. They have to follow the vendors instructions. If the vendor has told the agent they will not consider any offer under £X the agent does not need to inform them if an offer is below that.

Didimum · 05/12/2023 21:56

jc12689 · 05/12/2023 20:40

How is it a conflict of interest when the EA's acting on behalf of the seller anyway. He just trying to get the best price for the person who's paying them.

If I was selling my house and my EA was related to someone who put in an offer on my house. That would be a conflict of interest.

Obviously they're obligated to pass on offers but that's different.

Edited

Show quote history

It’s most definitely a conflict of interest. The agent has a personal interest in the property and may stand to benefit from its sale.

The Estate Agents Act states that an agent must not enter into negotiations regarding a property in which he or a connected person has a personal interest until such interest has been disclosed to all parties. The definition of connected person can include: an employer or employee, an associate of an employer or employee, a business associate, a spouse or relative, or spouse or relative of a business associate

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