Connells has come under fire for allegedly trying to pressurise a buyer at a Barnard Marcus branch into using its legal and financial services.
The purchaser already had a mortgage offer and wanted to use his own solicitor, but said that Barnard Marcus tried to ‘strong-arm’ him into using its own services.
After he had made the offer, he says he was offered a £5,000 discount if he used the in-house services.
The accompanying email said: “The seller requires a secure buyer with as many positive securities as possible, for example using our legals and financial services… Basically you are required to speak to my financial adviser.”
The Sunday Times ran the allegations under the headline “Beware estate agents’ hard sell tactics”.
The story also claimed that Barnard Marcus operates a list of ‘head start’ buyers – people who sign up for financial services and have a mortgage agreed in principle through the firm. The Sunday Times says it was told by one Barnard Marcus branch: “When we take on a new property for sale, people on the list get to see it first.”
The OFT said: “The Estate Agents Act clearly states that agents must not discriminate against potential buyers because they don’t want, or might refuse, to take services.
“For example, they must not refuse to give information about a property to these buyers or take longer to send property information to them.”
Connells is owned by Skipton Building Society. The Sunday Times claims that it has a panel of only 15 lenders, and that it would be possible to get a cheaper mortgage elsewhere by using an independent broker.
Barnard Marcus told the paper that it apologised if any buyer felt any undue pressure to use its mortgage and conveyancing services, and stressed these were entirely optional.
It added: “It is common practice for our branches to have lists of buyers in a position to proceed, some of whom are cash buyers, some of whom are head start card holders and some of whom have mortgages in place with other lenders and mortgage providers.
“This is common practice across the industry.
“This does not mean that other buyers do not get to view the properties, and it is against company policy to give priority to those who have a head start card.”
Comments
Agents have been doing this for years. They continue to pressurise clients into using their services and taking awy business from legitimate independant brokers who can give better advice. One of the agents mentioned is a train, burn and churn type of employer. Their expertise are therefore limited and their clients are not gettting the best advice from limited panels. Is it not time the OFT stepped in to monitor these activities and set new guidelines. Guidelines for these agents and brokers need to be set by OFT and Trading Standards need to step in. But then again does anybody care about the smaller brokerage firms and do we let corporates step all over us again and again.