Dealing with Estate Agents

Dealing with Estate Agents

It is very important to bear in mind when dealing with an estate agent that their primary client is the seller and not the buyer. If you live in England, Wales and Northern Ireland, here are some things that you should know:

• Find an agent that belongs to an Ombudsman’s scheme. The Ombudsman can award compensation and publishes a list of members on its website. Under the government’s Consumer Act, all estate agents have to belong to an industry body with an ombudsman scheme attached

• Be aware of the estate agent’s legal obligations

• If a buyer or seller believes that an agent has failed to meet its obligations they should complain to their local trading standards department

• Complaints about agents should be made to your local authority’s trading standards office

• If the agent cannot resolve a problem and they is signed up to the OEA code of practice, you can take your complaint to the Ombudsman

• Do not use the same legal adviser as the seller

• When an offer is made for a property, the estate agent must pass it to the seller promptly and in writing

• If you are the buyer, the estate agent does not have to give you details of other offers they have received for the property that you are after. Badly-handled offers are one of the top complaints dealt with by the Ombudsman for Estate Agents

• According to the Office of Fair Trading (OFT), an agent must not invent a bid or claim to have a cash offer, or first-time buyer, unless this is true. Nor can they state that they have a potential buyer unless that is true. A seller should demand to see the evidence if they have suspicions

• After your offer has been accepted, you cannot force an estate agent, or seller, to take the property off the market, or stop them advertising. You may fear being gazumped, but the agent is working to get the best price for the seller, and not the buyer. Some agents will offer to take a property off the market out of goodwill - particularly if your offer is close to the asking price and you are not involved in a chain

• In England, Wales and Northern Ireland, an estate agent can ask for a holding deposit once an offer has been put in, providing that they are covered by adequate insurance. All money must be held in a separate client bank or building society account, or accounts, as set out in the Estate Agents (Accounts) Regulations

• A common complaint handled by the Ombudsman for Estate Agents are “inaccurate sales particulars”. It is actually an offence for an estate agent to make statements about a property that are false, or misleading

• Estate agents are forbidden from presenting a seller with hidden extra charges. They must state either the exact amount you will be charged, or when this is not possible, provide details about how the costs will be worked out, or provide an accurate estimate. It is important to read their contract of services carefully before signing. For example, if you opt for single estate agent selling rights, and then find a buyer yourself without the help of the agent, you will still have to pay the agent

• Estate agents cannot discriminate against a buyer because they do not want to take advantage of the agent’s financial advice services. Agents must treat all buyers “fairly”, under the terms of the Estate Agents Act 1979

The OFT has a free booklet called “Using an estate agent”, which is available from its website.

Contact addresses

The Ombudsman for Estate Agents Scheme: 01722 333306

The National Association of Estate Agents (NAEA): 01926 496800