Horton: No place for conditional selling
The Property Ombudsman has told home buyers to stand up for themselves in the face of estate agency pressure to use a preferred conveyancer or other service provider.
Guidance on conditional selling [1] issued this week follows the issues highlighted in a BBC Panorama documentary last year [2], which highlighted how some estate agents forced buyers to use specific services, such as its recommended solicitor or in-house mortgage broker, as a condition of accepting their offer.
The practice is prohibited by the Property Ombudsman’s code of practice and the guidance aims to help consumers understand their rights and recognise when they may be experiencing unfair pressure or misinformation.
It says: “[Estate agents] can recommend services, but it must be clear that whether you choose to use them or not, your ability to view and make offers is not negatively affected.” It gives the example of a buyer being told: “The seller will only accept buyers who use our solicitor.”
If it happens, the guidance says, buyers should say no “firmly: make it clear you know your rights – you can send this guide to the agent”.
They should keep records – asking the agent to put it in writing – and speak to the seller if possible as “they may be unaware that the agent is putting pressure on you”.
Buyers should also raise it with the branch manager – “sometimes it is a staff issue” – and make a formal complaint, escalating it if necessary to the ombudsman or Property Redress, a body that resolves disputes between consumers and property agents. It finally recommends referring the issue to Trading Standards.
Chief ombudsman Lesley Horton said conditional selling “has no place in a transparent property market”.
She went on: “Estate agents must ensure that every buyer is treated fairly, with clear and honest communication at every stage of the process.
“Consumers should be able to trust that estate agents are acting fairly and equally, not using unfair tactics to influence their choices. Our new guidance is designed to provide home buyers with clear information about their rights and to remind agents of their obligations under the code of practice.”
The ombudsman said it would continue to monitor complaints about conditional selling and “work closely with government and industry bodies to promote best practice”.
The Panorama programme also prompted the Council for Licensed Conveyancers to launch a review of referral arrangements.
Last month, we reported how an estate agency had been praised [3] for publicly disavowing future demands for referral fees, describing them as “the quiet scandal” in the industry.