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Original poster

Estate agent didn’t check that my buyer was proceedable

20 replies

Jammymare · 19/08/2020 12:45

5 weeks on from accepting an offer and having instructed solicitor and sent draft contracts etc, it turns out that my buyer isn’t even proceed-able. I accepted the offer on the basis that they were a cash buyer, and my estate agent is being next to useless at keeping my informed. Do they not have a duty of care to check the status of buyers before completing a memo of sale?

OP posts:
ChicCroissant · 19/08/2020 12:48

It's not a developer that has changed their mind about the funding source, is it? I've seen that on MN before, so annoying.

Do you want to put the house back on the market? Has the EA said what proof they saw of being a cash buyer?

Pipandmum · 19/08/2020 12:53

They should, and you also should have asked for evidence. Ask to see the manager of your branch for an explanation.

Lazypuppy · 19/08/2020 13:22

Did you ask for only offers from cash buyers? Or people who can proceed?

Bit odd as normally estate agents are good at checking

Mychitchatdays · 19/08/2020 13:29

We were cash buyers and not once were we asked for proof that we had the funds to pay.

Original poster
Jammymare · 19/08/2020 13:42

Not a developer, cash being released following a divorce, and buyer using equity. Estate agent told me the property was sold and buyer was renting, but it’s not even on the market. I couldn’t go to branch to check as my local branch was closed During the lockdown and is not reopening

OP posts:
notheragain4 · 19/08/2020 13:52

That's awful! Did the buyer lie to the EA? I had to show my sale notification to my onward purchase to be allowed to proceed.

Original poster
Jammymare · 19/08/2020 13:54

No idea because the estate agent left a voicemail yesterday talking about resisting, but i haven’t actually been able to get hold of her since. Just wondering if I could use this to get out of the 3 week clause and go to another agent as I have been less than satisfied with the service anyway

OP posts:
user1471538283 · 19/08/2020 14:39

I would ask to leave the estate agent and go somewhere else. If they don't let you leave without notice say you want a multi agency contract.

Vintagevixen · 19/08/2020 14:56

They sound crap. I recently sold post divorce/became a cash buyer through equity. The people buying mine were also cash buyers. They had to provide bank statements etc to show they had the cash, then the EA on the house I was buying had to speak in detail to my EA to prove I would have the cash.

Time for a change in EA I think.

tara66 · 19/08/2020 15:06

Tell any estate agent you engage you do not wish to even have viewer who have not proved they have money to buy. They are just wasting your time.

SingingSands · 19/08/2020 15:25

I'm so sorry this happened to you, it's totally crap and I'd be having a word with the manger of your EA office - not that they can do much now but it needs to be acknowledged and they need to apologise.

A few years ago my friend was the buyer who was unproceed-able. How she thought she was moving was beyond me, the EA seemed to think everything was fine, but she couldn't get a mortgage so it clearly wasn't! I was really cross with her for stringing the vendor along for weeks and for all the stress it caused them, possibly I was being more sensitive as I was selling myself at this point.

2bazookas · 19/08/2020 16:07

No, I don't think you can expect an EA to obtain proof of cash buyers assets.

In my experience (buying properties for cash) sellers, their EA and lawyers just had to take my word I was a cash buyer. I've never asked for proof of assets and frankly, it would not have been easy or convenient to provide any, because they are always tied up in various ways until the last minute. I don't cash them in until needed for paying up.

     During  covid  a lot of people have faced  lockdown  delays in financial transactions,  business losses,  investment losses.   Its quite possible that your buyers lost  money quite rapidly.  None of which your  estate agent  would know about.
Bells3032 · 19/08/2020 16:13

Never had an estate agent (or heard of one asking) for financial information. Perhaps if specifically asked for it but it's not generally done by the EA. And in addition it may be they are receiving a gift or something so asking to see finances doesn't always give a clear answer.

We had to provide the info to the lawyer at the start of the process that we had funds to proceed. But other than being asked my "position" never been asked any further queries by an estate agent

Maybenexttime08 · 19/08/2020 16:28

We have always been asked by the EA for our Decision in Principle from our mortgage company before a sale memorandum would be sent and the house taken off the market.

SuperficialSuzie · 19/08/2020 16:40

An estate agent should alway obtain proof of ID for Anti money laundering compliance as well as proof of funding (deposit and mortgage or funds to the full purchase price) from a buyer, it is basic stuff.

However if the buyer had a court order confirming that their ex spouse was releasing equity to pay to them for use towards their purchase, I guess they could have used this as proof that they had funds?

juneisbustingout · 19/08/2020 16:45

I recently made an offer on a house and was asked to provide proof of funds ( cash buyer) as well as show driving license and passport. I had to physically go into the branch and get my banking details up on my phone

Notemyname · 19/08/2020 17:39

This happened to my friend, her buyer said his house had accepted an offer on it, but 7 months down the line after delay and delay it turned out he was divorcing and there were all sorts of delays agreeing the sale and finalising their paperwork. The sale did go through eventually but the buyer had lied through his teeth, my friend was also divorcing and had wanted a quick sale so she could move on.

Didiusfalco · 19/08/2020 17:45

I think asking for proof of funds is very much the done thing now @Bells3032. We bought ten years ago and we weren't asked for anything. We moved at the start of this year and had to provide proof of mortgage offer as well as copies of bank statements showing we had the additional cash funds. This wasn't just to one estate agent either, since we had a purchase fall through and had to provide this more than once.

isseywith4vampirecats · 19/08/2020 19:07

we bought last year as cash buyers (pension draw down) and had to take proof of funding to the estate agents, my OH took the paperwork and the seller took the house off the market

YNK · 19/08/2020 20:04

I had to produce evidence that I could proceed when I made an offer on this house.

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