Estate agent won't put offer to vendor until we have spoken to his "financial" colleague

[mrssmooth]

Does this seem right to you? He (the estate agent) won't put the offer to the vendor without us having first spoken to his financial/mortgage consultant/chappie. We have sold our house, the bank is willing to lend us x amount of money (which I have told him - although not the amount!) so why do I need to speak to this guy before they even put the offer on the table? Plus, I put the offer in an hour ago and they still haven't phoned back! I'm very about this ..

Nope, seems very wrong! He can offer the services of his financial colleague but it shouldn't be mandatory, AFAIK.

They did this with us, and it seems ridiculous to be honest. They claimed that it was to ensure our offer was something we could afford, but really was just a stupid selling tactic as I could have told the financial guy all manner of crap as he didn't check anything. It was rather funny when I told him about the deal we have, the equity we have and the amount we earn because there was no way he could match our offer or argue we couldn't afford the mortgage.

It's just a few minutes so I wouldn't worry if I were you.

Very wrong. If your finances are in place, they are in place. They seem to be chasing a cut, or a kickback.

I think its pretty normal actually - from the vendors pov, they want to know you actually can finance the purchase before taking it off the market etc. I think we've done it each time, but never gone through the EA for a mortgage.

they are not allowed to do that, he's trying to get additional commission. He is obliged to put every offer that he receives to his client. In your position, I woudl get written confirmation from your bank that you are proceedable for £x. Hand that over with a written note confirming his obligation as teh vendor's agent to pass over your offer of £y and asking for the agent's written confirmation that he has done so. He's a lying shyster after more commission.

This happened to me, albeit many years ago. Turns out the EA's "financial colleague" was in fact an IFA and he persuaded me to take out a mortgae and various other policies through him, rather than go with what I'd already arranged. Needless to say he was taking a cut, and when I realised I'd been scammed I dobbed him in and had the various banks refund me. He then clearly got into trouble because he rang me, gave me an earful and said "Now I'll have to sell my wife's new Golf"! Cheeky sod. I was only 21 and very naive and inexperienced. Funnily enough, I'm not anymore!

Typical, I post this and then they phone! Thanks Poldera, that's my view too. Apparently it's "a service they offer" so they can go back to the vendor and say yes, these people are "good to go ahead". Very bizarre practice indeed.

crikey, didn't refresh before I posted last message! Will read now

I appreciate that they need to make sure that we are proceedable, but as we explained to the Estate Agent on Saturday (not the one I made the offer to), we have sold our house, have a large deposit to put down and the bank has agreed to lend us an amount! God I wish dh was doing all the "dealing"!

No no no this is all wrong. They should put forward your offer without attaching such "strings".

This is a well known "angle" some EAs use to get more business for their associated mortgage brokers. Resist!

at Smartarse! This only confirms my low opinion of EAs.

Good luck with your offer, OP.

I think you should, prior to any meeting, send a letter to the EA saying "we hereby offer £xx for 27 Bog Street. Please pass this offer to your client" If you want to be awkward you can send a copy to the vendor at Bog Steet.

Talking is one thing, but the "consultant" is doubtless a highly-skilled salesman who receives fat commission on whatever of your money he can syphon through his firm. Do your best not to let him. When he is asking for your personal information, bank accounts etc, try saying "this is personal data which is given to you for the purpose of evaluating our ability to complete the purchase, and for no other reason." Try putting that in a confirming letter after the meeting and adding "It is not provided to enable you to make marketing or sales calls for financial products or services"

Don't suppose it will work but is worth a try.

Also look very carefully at all the papers he gets you to sign, and untick the box that says your details can be used for carefully targetted information from them and their associated companies. You know what that means.

As the others have said, the EA has a legal obligation to pass on your offer to their client. You DO NOT have to use their mortgage brokers, and it should not be a prerequisite of them passing your offer on.

However, in the current climate where deals are often failing because purchasers cannot get mortgage finance, it would be wise to have a letter from your bank stating your position that you can give to the agent to reassure the vendor. (I had to do this, even for a well known client who bought his house for over £6million pounds, and effectively in cash).

Under the Act they are obliged to put all offers forward to their client. Estate agency act 1979 obviously.

This act applies to anyone transacting property or land of any kind

Go and quote that at him.

Probably trying to get extra business out of you. Or he could be trying to give his vendor the impression there was no interest in the property and sell it cheap to his mate which is obtaining money by deception.

You can put your offer and position re house sale and loan etc in a letter direct to the vendor and pop it thru the post box and apologise for the direct approach but agent would not put offer forward. This way the vendor are not obliged to pay his fee if they sell to you as he is in breach of contract (by breaching the act).

Hth

Thanks all. He was trying to "get us a better deal for our mortgage" which we have politely declined. I wouldn't be signing any paperwork or anything like that! The offer was put to the vendor, rejected and they are now considering the second offer so fingers crossed!