Estate agent have sold a property to somebody else now - do i have a case against them??

Question

I require a bit of advice about an estate agent and whether I have a case against them. This is my story:-



I made an enquiry with an estate agent about an “affordable home”. I was required to provide a £250 deposit in order to reserve this property. On 5th June 2007 I attended at the estate agents to find out more about the property. I had the £250 deposit cheque that I had been told to bring with me. I was very keen to purchase this property but the estate agent told me that they could not take the deposit cheque until they had proof we could fund the purchase. They therefore made me an appointment to see their mortgage advisor the following week. When I attended to see their mortgage advisor she confirmed to me I could obtain a mortgage for this property but that she could not take matters any further that day because something had come up a section 106 agreement on the property and she needed to find out more before she could proceed to arrange a mortgage. Whilst I was with her she told the estate agents not to take anyone else’s deposit for this property until she had clarified the position. She said as soon as she heard from the local authority or the developer she would get back to me in order that I could proceed with the purchase. She then telephoned me on Friday last week to say she still hadn’t heard anything about the s106 agreement and that she was due to be receiving an email and as soon as she received it she would be in touch. I said I was still very keen to proceed.



However, on Monday this week I was looking on the estate agents website just out of interest and I noticed that the property I had enquired about was now sold subject to contract. I immediately contacted the estate agents and they confirmed that they had sold this property to somebody else. I explained the situation and how I had spoken to their mortgage advisor on Friday who said she was waiting to hear back still. They said to me that this person who is purchasing the property did not need a mortgage and the s106 agreement did not affect them. I have contacted the estate agents and they apologised to me and said that this has occurred because of a breakdown of communication between their company. I am very concerned and upset that they have now sold this property to somebody else. As far as I was concerned as soon as their mortgage advisor had received the information I would have been able to proceed. I was able to give the £250 deposit over two weeks ago but because of the difficulties that had arisen in relation to the s106 agreement I was told to hang on to it until the position was clearer



I do not believe that I should miss out on the opportunity to purchase this property because of a lack of communication on their part. I am very keen to purchase this property and I would like to know whether there is anything that I can do or say to them so that I can proceed with the purchase. I do not believe I should lose out because of them.

Answer 1

Section 106 agreements are established by the planning departments of the local authority. I would call the local authority and enquire regarding the specific property you were trying to purchase. The purpose of these agreements is to ensure that there are a proportion 'affordable' homes built in new developments. If you were advised by the estate agent's mortgage adviser to get approval for a mortgage first before having your offer accepted and then the estate agent sells the property to a cash buyer - I suggest that there may have been a contravention of the s106 agreement. You need to find out exactly what the local authority agreement stipulated. If there is a dispute the same local authority's trading standards department may be able to advise you on what the next step should be.

Answer 2

Another victim of estate agents incompetence i'm afraid.



It sounds like the agent is selling a new development that is not fully finished. It is quite common for agents to take 'deposits' to hold off-plan units on behalf of the developer and without formally putting the offer to the developer. Basically, as long as the agent takes holding deposits the developer isn't too bothered. Deposits are usually non-refundable and not contractual and if the buyer doesn't exchange within a certain timeframe, the agent/developer can re-offer that unit.



You unfortunately lost out to a cash buyer. However, it would have been good practice for the agent to inform you of other interest to see if you were in a position to secure the unit. This did not happen and your next option is to ask for their company complaints procedure. Insist that you get details of the managing partner/director. If you are not satisfied by the outcome then you need to make a formal complaint with NAEA, RICS or Ombudsman - whichever they are members of.

Answer 3

I dont understand why they requested a deposit. You shouldnt have to pay a deposit unless you make an offer and its accepted?



The question is did you make an offer to the sales negotiator? If you did then by law he/she has to put it forward to the seller. Then the seller decides wether to take it or not, then the estate agents come back to you and let you know if it has been accepted. You can offer on a property even if you dont have a mortgage offer.



If you didnt put an offer forward then unfortunately yes they can sell the property to someone else.



Best thinig to do is get in touch with the NAEA and they will be able to help you and let you know if you can take it further.



www.naea.co.uk



Hope this helps you.



Good luck

Answer 4

Unfortunately, no, I don't believe you have a case against them.



The vendor (seller or owner) of the house you intended to buy, sold it to the other person, because they were in a better position to buy than you (i.e. no mortgage required, meaning a quicker transaction and more certainty).



Look at it from the point of view of the vendor; he had no guarantee that you'd get the mortgage, and if he waited for you, there would be more chance of something going wrong. Someone offered him cash upfront. What would you do in his position?



Welcome to the world of property. It's petty, nasty, awkward, stressful, and the only thing that really counts is if you've got the money available.



As for estate agents, they're in it for the commission, end of story.

Answer 5

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Answer 6

you already have ur answer. someone didnt need to finance a mortgage therefore this agreement didnt affect them which was why they were able to afford the property.

Answer 7

Thats estate agents for you

Answer 8

Until you go to exchange of contracts, you don't have a legally enforceable contract.