Selling a Home in UK
This section details the potential scams and unethical practices
to beware of when selling a property in the UK.
to beware of when selling a property in the UK.
Categories in section: Selling a Home in UK
| Viewings to Offer | Offer to Completion |
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Agent requests sole selling rights within a sole Agency agreement
Who is the Rogue?:
Estate Agent
How does it work?: Some Sole Agency agreements are misleading in that they give the Estate Agent sole selling rights. If the seller finds a buyer privately, he is still forced to give the Agent commission if the sale goes through. How to avoid this scam?: Make sure you read the small print very carefully. Ensure the selling arrangements are clearly spelled out in the agreement you sign. |
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Agent insists their commision is paid at exchange of contracts
Who is the Rogue?:
Estate Agent
How does it work?: Some agents may specify in their contract that commission is paid at exchange of contracts and not on completion. This results in the seller having to front several thousand pounds from their own pocket before concluding the transaction. There are some cases where the Agent even claims interest for a late payment. How to avoid this scam?: Given the risk that a sale can still fall through before completion, never agree to pay the Estate Agent upfront. Make sure also that the contract allows a few days for the completion monies to transfer before claiming interest. |
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Agent is bribed to bin sealed bid offers
Who is the Rogue?:
Estate Agent
How does it work?: An estate agent receives a backhander from a buyer to open all other sealed bids on a property and bin them without informing the seller. He then informs the other potential buyers that their bid was unsucessful. How to avoid this scam?: An effective way to catch the rogue estate agent is to get a friend to put in a deliberately high sealed bid and see if the agent passes it on. If properly recorded, this could effectively prove that the agent is cheating you. |
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Solicitor dragging his feet and slowing down the process
Who is the Rogue?:
Conveyancer
How does it work?: Despite all the upfront assurances you get from your conveyancer that he'll move as quickly as possible, it's very rarely the case. When you call them to kick some ass, you'll often get fobbed out with the same excuses like..."local searches still not in" or "still waiting on question from other solicitor". They insist on communicating via letter and never bothering to phone or send an email. They are generally very busy and do not take a proactive stance at all when it comes to progressing the transaction. How to avoid this scam?: Choosing a proactive solicitor you can actually talk to is critical to helping control the pace of a successful transaction. Irrespective of whether you have an agreed offer in hand, be aware that a solicitor won't do anything until your initial deposit is cashed. When some issues/questions arise, it can often be much quicker to resolve them directly with the buyer (or seller) via the estate agent. The agent has a vested interest in making the process flow as quickly so he gets paid. |
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"No chain" buyer suddenly decides to sell his own house
Who is the Rogue?:
Buyer
How does it work?: A buyer may insist they don't have to sell their property in order to buy another and subsequently make an offer based on a strict timescale. This puts them in a much stronger position than someone caught up in a "chain". Unfortunately, after the offer is accepted, the buyer then changes his mind and looks tie in the sale of his own house thus significantly delaying the process. How to avoid this scam?: Make sure you obtain some proof before accepting the offer that the buyer is able to purchase another house without selling his (e.g., check he can raise another mortgage). Make it clear when accepting the offer that the proposed timeline should be adhered to. If not threaten to pull out. You should keep the house on the market until valuation is instructed to ensure the buyer moves quickly. |
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Results 6 - 10 of 19