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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Gazundering: Buyer attempts to lower the sale price before exchange of contracts
Who is the Rogue?:
Buyer
How does it work?: Gazundering is legal as the buyer is under no contractual obligation to the seller until exchange is made. Certain unscrupulous buyers wait until the last minute when the seller is at the most vulnerable to revise their offer down. It is particularly problematic and dishonest when there is a chain involved and all parties stand to lose a significant amount of money and time. How to avoid this scam?: Unfortunately, there is not much you can do to protect yourself especially if you're caught in a chain. Refusing the revised offer may cost you not only the house you're selling but also the one you're buying as you may be forced to pull out. Bridging loans are very expensive and should only be used as a very last resort. |
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Agent makes up an imaginary buyer and offer
Who is the Rogue?:
Estate Agent
How does it work?: It works something like this. The agent puts forward an offer from an imaginary buyer in an attempt to stall the seller while a friend of his attempts to line up a mortgage. Nothing happens therefore for several weeks after the offer is accepted. Then the agent informs the seller that the buyer has pulled out but he has a backup option standing by. He then proceeds to negotiate a lower price to the property and introduces his friend as the new buyer. How to avoid this scam?: When you accept the offer, make sure it's in writing and includes the names of the buyer and his solicitor. Keep pressure on the agent to conduct new viewings until which time you feel the buyer is genuine and is committed to the sale. |
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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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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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