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Beigemaster

Can The Ea Legally Do This?

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I'm copying and pasting directly from a Sheffield certain EA's Rightmove add

Offer Procedure

Before contacting a Building Society, Bank or Solicitor you should make your offer to the branch dealing with the sale as any delay may result in the sale being agreed to another purchaser incurring unnecessary costs. Under the Estate Agency Act 1991 you will be required to provide us with financial information in order to verify your position, before we can recommend your offer to the vendor. We will also require proof of identification in order to adhere to Money Laundering Regulations.

Now, I'm sure that information would be very helpful to an EA by both

1.Trying to ensure you use their in house mortgage advisers/team

2. Establishing how much money you actually have, which would be extremely difficult to then make an offer significantly below the asking price. EG I have 200K in place looking at a 200K asking price that I want to offer 160K etc.

Question is can they legally block you're offer from being passed on to the vendor? We all know there are many crappy EA's and this particular one I distrust even more.

We were living in a place and the LL wanted to sell and requested 2 valuations. 1st one came in and was extremely thorough with measurements and even (shock horror) asked us mere tenants about the property (did it have any major problems etc) and valued it at a reasonable 150K. 2nd one came in, spent all of 5 minutes down stairs (didn't even look upstairs) and the only thing she told us about was her enormous property "portfolio" and said she could sell this for 170k so guess which one the LL went with? 2 Years later, it sold for 130K after she switched agents.

This is the same woman who has valued a house I'm now interested in, so by definition I would be going much lower than the asking price but I don't see how/why that offer wont be passed on without any detailed "Financial information" or am I just being unreasonable?

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Just ask the bank to provide you with a key facts breakdown based on the offer you want to present rather than giving them a mortgage promise (your maximum affordability).

If its a repo your offering on the bank may have asked the EA to only entertain offers where proceedability has been established.

By giving them the above, you've satisfied them that you can proceed on the offer you've made and so no need to book in time with their in house broker.

That said, even if you gave them your mortgage promise, and revealed your maximum budget, even if you were a multi-millionaire, your offer would still be your offer. It's pretty illogical to assume the maximum a bank is willing to lend is the maximum you're willing to offer, it's not 2007!

Edited by thombleached

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There is no such thing as the Estate Agency Act 1991.

Ooh - I wonder if there is some offence committed there. Or ground for a civil case under false representation. Any lawyers know? I LOVE knocking dodgy business people about when they try to invent spurious reasons to game the public.

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Ooh - I wonder if there is some offence committed there. Or ground for a civil case under false representation. Any lawyers know? I LOVE knocking dodgy business people about when they try to invent spurious reasons to game the public.

Advertising standards agency now covers web sites I seem to remember!

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Don't get too excited, there is a 1979 act, maybe it's a typo?

All you need is a bank statement which shows you have the deposit and a confirmation letter that you have a mortgage for the balance. They don't need to look under the cushions on your sofa and your detailed financial affairs are none of their business. If they want more, just quote the Act - there's a clause about acting impartially and fairly.

I keep a special account, un-used apart from dropping money into it in case anyone wants to see I have the money to finance a transaction.

Be careful about having "too much" visible money, especially if you are low-balling the offer and they might see you could improve your bid. Play them at their own game.

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ASA's rouges Gallery is here:

http://www.asa.org.u...dvertisers.aspx

Details on making a complaint here:

http://www.asa.org.u...o-complain.aspx

But the ASA are completely and UTTERLY toothless. Look at this one example: http://www.asa.org.uk/Rulings/Non-compliant-online-advertisers/Fitalifestyle.aspx

Because of Fitalifestyle’s continued non- compliance we took the decision to place their details on this section of the ASA website on 15 November 2011. These details shall remain in place until such time as Fitalifestyle Ltd t/a seemycells.co.uk has removed or appropriately amended the claims on its website to ensure compliance with the ASA adjudication and the CAP Code.

Guess what. It's now May 2013. I guess that Fitalifestyle Ltd don't give a shit. Why would they? They are trading with impunity and there is no punishment. The ASA is a joke.

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Thanks for the responses- think it is just a vetting exercise as I've noticed the same instructions don't seem to be on ALL the properties they're selling. Looks like I'm not the only one who has spotted it though and I agree that it looks like a misrepresentation of the Property Misdescriptions Act 1991

http://www.sheffieldforum.co.uk/showthread.php?t=146819

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  • 259 Brexit, House prices and Summer 2020

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      • down 5% +
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