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 |
| Title: | Scam rating: |
|
Gazumping: Seller accepted offer but then takes a higher one
Who is the Rogue?:
Seller
How does it work?: Gazumping is legal although considered unethical. It's when a seller accepts an offer from one interested party, only to then accept a higher offer later on from someone else. It can prove disastrous and financially damaging for the buyer if it happens late in the process after he's paid for conveyancing and surveys. Usually, plain old greed is the major factor in gazumping. Sometimes, the buyer can provoke gazumping by procrastinating or stalling on the deal. How to avoid this scam?: First, ask your agent if they have a contract with the seller to prevent Gazumping. Many do. You should also ask to have the property taken off the market following your offer (or at least when valuation is instructed). Make sure you get it in "writing" or it means nothing. Don't forget an estate agent is legally obliged to inform the seller of any offers he receives up until exchange of contracts. |
|
|
Agent deliberately lied about the property
Who is the Rogue?:
Estate Agent
How does it work?: Agent puts down false information about the property on the sales description or lies about a key feature of the house to convince you to buy. In particular, be wary about anything they say about planning permission or opportunities to extend the house. How to avoid this scam?: Never ever believe the agent's word. They cannot be trusted. Always get written proof. If they confirm the information in a letter, watch out for caveats like "to the best of my knowledge" etc. By law, an agent doesn't have to point out any defects or problems but must answer direct questions accurately. If not you may have a claim under the 1991 Property Misdescriptions Ac. Also make sure you have a good solicitor who'll double check everything the estate agent leads you to believe. |
|
|
Homebuyer Survey failed to inspect property correctly
Who is the Rogue?:
Surveyor
How does it work?: Homebuyers surveys are often recommended by estate agents but generally are a complete waste of time. They consist of very superficial inspections that point out obvious defects and yield a standardized report that's full of caveats and clauses. The surveyor will try so hard to protect himself from any legal reclamations that his point of view becomes worthless. A full structural survey is significantly better but is overkill in most cases and not to mention it costs alot more (often over £1000). How to avoid this scam?: A much better alternative to doing a homebuyers survey is to engage the services of a trustworthy and knowledgeable builder. Pay him for a couple of hours and take him around the property you wish to buy. He should be able to give you a good sense for the state of the property and anticipated repair costs. |
Rate it first |
|
Seller deliberately decieves buyer about problem neighbors
Who is the Rogue?:
Seller
How does it work?: Living next to a "nutter" or a noisy family can be a total nightmare and a key reason to want to move house. It can also bring down the value of the property so many sellers will try to avoid disclosing any neighbor related problems to a buyer. How to avoid this scam?: Make sure your solicitor triple checks that no neighbor related complaints have been made on the property you are buying. Sellers are obliged to disclose any problems on the Seller's Property Information Form but often omit to do so. Several court cases recently demonstrate that sellers should consider carefully how they answer questions on neighbor disputes. The possible consequences of being "economical with the truth" can be very costly indeed. |
Rate it first |
|
Agent continues to conduct viewings after offer is accepted
Who is the Rogue?:
Seller
How does it work?: Even after your offer is accepted, the Estate Agent may continue to market the property to the highest bidder. Usually the seller requests this specifically if he has low confidence that the buyer will complete the transaction or simply wishes to get a higher/stronger offer from someone else. The major risk is that the buyers gets gazumped after spending money for surveys and conveyancing. How to avoid this scam?: It's difficult to avoid this unethical practice happening as an offer is not legally binding. The Seller is within his right to continue marketing the property until exchange of contracts. Most honest sellers / estate agents will take the house off the market once valuation has been instructed and stop further viewings. |
Rate it first |
Results 1 - 5 of 7