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Original poster

Surveyor refused to carry out valuation due to conflict of interest?!

57 replies

Freestylem · 02/07/2022 11:23

I was booking in a valuation with a surveying company for the house I am purchasing. I spoke to the estate agent beforehand to give him the heads up that the surveyors would be contacting him to arrange access. The estate agent said he couldn't understand why I needed another valuation as I already had a valuation from my mortgage lender. I explained that the valuation was a free addition to the homebuyers survey I had purchased so there was nothing to lose in obtaining a valuation for my personal use.

I received a call from the surveyors to say that they had received a call from my estate agent letting them know we had already received a valuation from our mortgage lender. The surveyors said they therefore could not carry out the valuation as it would be a conflict of interest. I said the valuation from them would be for my own personal use, how is there a conflict of interest? The mortgage lender's valuation was with a different surveying company.

Firstly, is there a conflict of interest? Secondly, I am very concerned that the estate agent has gone to these lengths to stop me having a personal valuation! There are 3 properties on the same estate as the property I am buying that have not sold yet despite being on the market for a while.

Property in question is over £500k.

OP posts:
JustLyra · 02/07/2022 14:24

Was your bank survey a while ago?

I’d be very suspicious something has changed/happened since your back survey and the EA is trying to keep that hidden.

Original poster
Freestylem · 02/07/2022 15:25

No, the bank survey was recent

OP posts:
WhiteHydrangeas · 02/07/2022 17:02

OP, I think you're absolutely right to be suspicious here.

This alleged conflict of interest sounds like bullshit. If there really was some kind of conflict, why was the surveyor able to do the homebuyers survey? Surely the same rules would have apllied to that. And why didn't they decline to do the valuation straight away but only after the estate agent had called them? None of that makes sense. Pressure from the EA as suggested by SausagePourHomme is the only logical explanation here.

But even if there was a genuine conflict of interest, the EA's behaviour is way out of line and red flags gallore. As you said yourself, why on earth would he go to such lengths to stop a second valuation? Yes, of course he'd prefer to not have a second opinion that might throw a spanner in the works, but overstepping like this looks pretty desperate, the optics really are utterly terrible. Why would an EA do something that would set any buyer's alarm bells ringing unless they knew there was something seriously amiss?

It all seems dodgy AF. I'd walk away and tell them why - unless it's your ultimate dream house. In that case I'd get another (possibly non-local) surveyor involved and take their fee off your original offer.

PragmaticWench · 02/07/2022 17:32

The Estate Agent is employed by the vendor and has no place contacting any agent you employ, unless directed by you to do so. That could be a surveying agent, a drains specialist, a builder or anyone else you'd like a professional opinion about the property from.

I'd email the owner of the Estate Agency to complain and go to the ombudsman if that doesn't help.

BlueMongoose · 02/07/2022 17:34

Freestylem · 02/07/2022 11:54

The first valuation was the mortgage lender's valuation and it valued the property at the price I am paying for it. I can't see why however, I am not entitled to have my own personal valuation?

Show quote history

I can't either. I'd ask them very nicely to spell out in writing exactly what this 'conflict of interest' is because you don't understand it and you want to get your solicitor to explain it to you- and you need it in writing because you want to be sure you're reporting it properly to your solicitor. Then see if they back off.
Sometimes playing innocent can work wonders- it can be more effective than saying 'WTF are you talking about?' which I admit tends to be my first reaction to this sort of thing.

SausagePourHomme · 02/07/2022 17:37

"Your estate agent should be a member of one of two trade associations or professional bodies. If you can’t tell from their brochures and paperwork, ask them, because you may be able to get their trade association to look into your complaint. If the agent is in breach of the rules of membership or a code of practice then they could face disciplinary action The biggest Trade Association is the National Association of Estate Agents (NAEA) Propertymark and the main professional body is the Royal Institute of Chartered Surveyors (RICS).

Spanielsarepainless · 02/07/2022 18:03

The bank valuation survey merely checks that the property is worth at least as much as your mortgage. If you want a condition survey, I can't see why anyone would stop that unless there is something to hide.

Acaseofthemondays · 02/07/2022 18:11

I thought it was pretty standard to have a mortgage valuation survey and, if you’re having a homebuyer’s survey the one that comes with that.

I had 2 on my last property. They were from different valuers but they matched.

Your situation sounds a bit weird. There’s no obvious conflict of interest.

Emmagr1 · 02/07/2022 18:20

Your instructed valuer is probably on your lenders panel of firms to use. If that's the case their a conflict of interest.

You would need to use a firm who is not on their panel I suspect.

whatsmybabysname · 02/07/2022 19:23

Can you clarify please, you had a mortgage valuation by a surveyor (who actually works on behalf of the mortgage provider, not you.)

Who provided you with the homebuyers report? Was this arranged privately? I'm assuming there was no valuation within the homebuyers report?

You say you should have been entitled to a free valuation with the homebuyers? Is it the same surveyor who provided the homebuyers who is now saying they can't provide you with a valuation as it's a conflict of interest?

BlueMongoose · 02/07/2022 21:18

Emmagr1 · 02/07/2022 18:20

Your instructed valuer is probably on your lenders panel of firms to use. If that's the case their a conflict of interest.

You would need to use a firm who is not on their panel I suspect.

Why is it? Ther lender has done their own valuation. The buyer has paid for a survey that includes a valuation. Are you saying that if the surveyor happens to0 be on the lender's list that they are able to not do part of the survey contract, and that without even warning you in advance? They ought not to be sharing any part of the survey with the lender if the buyer is paying for it- including the valuation. So either they ought not to have agreed to do the survey, or they ought to do the valuation. They can't have it both ways.

Emmagr1 · 02/07/2022 21:30

It seems in this case the homebuyers report has been completed by one firm and the valuation by another. I think that's unusual.

The valuer is protected it's interest in this instance because their wouldn't want their report to be used in dispute of another panel firms opinion of value.

The lender, rightly so, would rely on the report they have instructed anyway. I can understand why another firm wouldn't want to value the property, as it is subjective and they may not reach the same conclusions.

So being on panel of a lender is far more valuable to a surveyors firm than a one off report request.

That's the reality of it unfortunately.

Once the mortgage has completed and the initial report has been relied upon, the conflict would fall away.

Hope this makes sense

Original poster
Freestylem · 02/07/2022 21:33

The surveyors who did the homebuyers report were Countrywide actually so it is very likely they would be on the lender's panel.

OP posts:
Emmagr1 · 02/07/2022 21:34

Freestylem · 02/07/2022 21:33

The surveyors who did the homebuyers report were Countrywide actually so it is very likely they would be on the lender's panel.

That will be your reason I am sorry to say.

WhiteHydrangeas · 02/07/2022 22:31

This still doesn't explain why the EA decided to massively over-step to stop a second valuation, though. Surely nobody would do that unless they had something fairly major to hide? The three other properties on the estate that haven't sold would also worry me. Personally, I'd definitely keep digging and complain about the EA.

Original poster
Freestylem · 03/07/2022 08:59

WhiteHydrangeas · 02/07/2022 22:31

This still doesn't explain why the EA decided to massively over-step to stop a second valuation, though. Surely nobody would do that unless they had something fairly major to hide? The three other properties on the estate that haven't sold would also worry me. Personally, I'd definitely keep digging and complain about the EA.

The estate agent is exP, I think he works independently under their umbrella but would be grateful if anyone could shed any light!

OP posts:
NoSquirrels · 03/07/2022 09:03

The estate agent is your ex partner? What’s the history?

Butterfly44 · 03/07/2022 09:05

The answer is to go to another surveyor.

CaptainBeakyandhisband · 03/07/2022 09:11

If you’re wanting a survey/valuation report solely for your information then you very much need to engage an independent RICS chartered surveyor directly. I think as you’ve picked one of the big chains eg through Countrywide that’s probably why you’ve had a problem. When we bought we had a full structural survey (with valuation - but the valuation just said the agreed price was reasonable given the condition of the house), and a mortgage valuation for the loan itself.

As it stands, I’m not sure I would want a second valuation in your shoes. It’s likely to be the same (so a waste of effort), but if it’s higher are you going to tell the seller and offer more? If it’s lower are you going to tell the bank and increase your deposit when they decrease the loan amount? As a seller I would not entertain dropping the price in these circumstances.

Original poster
Freestylem · 03/07/2022 10:08

NoSquirrels · 03/07/2022 09:03

The estate agent is your ex partner? What’s the history?

Noooo the company is called eXp!

OP posts:
Goawayangryman · 03/07/2022 10:23

I don't think it is necessarily that the EA has snitched. It will be the panel thing that the PP mentioned. Surely it would come up during their due diligence. Plus, you already have a survey (although I'd never go for just homebuyers personally)..... If the survey was ok and there are no obvious problems with eg tenure, lease arrangements (if leasehold on an estate), planning, adoption of roads etc... Then I'm not sure what the big deal is.

Goawayangryman · 03/07/2022 10:26

As in, it might not be that the EA called up to flag this valuation, it might be that the two know each other and it came up in the course of conversation, "dunno why they are booking another appt, they've already had one valuation but hey ho, let's try and find a date when the seller can give access...." Or something.

I'm not usually a fan of EAs and wouldn't trust them as far as I could throw them but it strikes me that this isn't necessarily some massive conspiracy.

Original poster
Freestylem · 03/07/2022 10:26

Goawayangryman · 03/07/2022 10:23

I don't think it is necessarily that the EA has snitched. It will be the panel thing that the PP mentioned. Surely it would come up during their due diligence. Plus, you already have a survey (although I'd never go for just homebuyers personally)..... If the survey was ok and there are no obvious problems with eg tenure, lease arrangements (if leasehold on an estate), planning, adoption of roads etc... Then I'm not sure what the big deal is.

The surveyor told me that the EA rung them to tell them I already had a mortgage valuation

OP posts:
RockinHorseShit · 03/07/2022 10:32

EA works for you, never forget that. I'd be handing him his arse on a plate after that move & either moving company, or asking his bosses that he's taken off your sale & it's given to another agent. CFer

Winederlust · 03/07/2022 10:47

I think you need to go back and ask them exactly where the conflict lies tbh. It's all well and good speculating the reasons on here but there are obviously a number of possibilities, some innocent and some not so much.
I do think it's unusual for the EA to be getting themselves involved when they have no business to...