Buying a Home in UK
This section details the potential scams and unethical practices
to beware
of when buying a property in the UK.
Categories in section: Buying a Home in UK
| Viewings to Offer | Offer to Completion |
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Agent fails to pass on my offer to the seller
Who is the Rogue?:
Estate Agent
How does it work?: There have been a number of cases where the Estate Agent had deliberately withheld a higher offer from the seller. They may have another more profitable client who is willing to use their other services like mortgages. Or they could have a friend lined up for the property or be in collusion with a property developer. How to avoid this scam?: Estate Agents are required by law to pass on absolutely all offers in writing to the seller. Make sure you ask for a copy of the offer letter. If still in doubt, try and contact the seller directly to see if they received your offer. |
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Agent threatens to withold offer unless buyer uses their mortgage services
Who is the Rogue?:
Estate Agent
How does it work?: Some estate agents use high pressure sales tactics to hawk finance related services to potential buyers. They often can make more money on these services than on actually selling houses. One fraudulent practice is preferential listing when buyers are told they will have priority over other buyers if they take the financial services like an insurance or a mortgage offered by the estate agent. How to avoid this scam?: Under the terms of the Estate Agents Act 1979, Estate agents cannot discriminate and must treat all buyers "fairly". You are under no obligation to accept any financial services offered to you by the estate agent. If the Agent specifically tries to link his products to the offer, call him on it and threaten to contact your Local Trading Standards officer. |
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Agent puts up For Sale boards next to properties that are not for sale
Who is the Rogue?:
Estate Agent
How does it work?: The Agent will put up For Sale or Sold signs outside properties that are not for sale as a way of generating cheap publicity. This practice is known as flyboarding and gives a misleading impression of the amount of business an estate agent is doing in an area. The Agents goal is to affect the choice of potential sellers when choosing an Estate Agent to market their property. How to avoid this scam?: If you encounter Flyboarding, call the estate agent on it and threaten to contact your local Trading Standards Authority. This is an illegal practice under the Trade Description Act and carries a hefty fine. Trading standards officers have successfully prosecuted several Estate Agents in the past few years. |
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Agent continues to advertise property that's already sold
Who is the Rogue?:
Estate Agent
How does it work?: When an estate agent has sold an attractive property, he may continue to advertise it or list it on websites to draw in new prospects. When you call him to arrange a viewing, he will tell you it's no longer available but will invariably try to sign you up and promise he has other similar properties available. Some rogues will go as far as to advertise another agents property as their own without permission from the owners. How to avoid this scam?: As this tends to happen a lot, it's worth suggesting to the Estate Agent that he updates his listing. If he still fails to comply, threaten to report him to your local trading standards office. |
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Agent fraudulently claims to be a member of a trade body
Who is the Rogue?:
Estate Agent
How does it work?: Some rogue Agents may claim to be members of the NAEA (National Association of Estate Agents) or OEA (Ombudsman of Estate Agents) in their advertising or promotional literature. This can help reassure potential clients that they adhere to a chart of conduct when in fact it's false. How to avoid this scam?: You should always double check that an estate agent is what they claim to be on the NAEA and OEA websites. All the members estate agents in your neighborhood should be listed. |
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