Conflict of interest-estate agents
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There wouldn't be any conflict of interest there at all. When your EA secured your buyer, they would have asked your buyer about their own house. It's two separate transactions, the EA is acting for you in the sale of your home and is acting for your buyer in the sale of their home. It happens all the time, no conflict of interest.
Why would there be a conflict of interest? On the contrary I would expect the EA to work (if that's the right word 
) twice as hard to keep the chain together otherwise they potentially lose two lots of commission.
Sarah
www.rea.ie
) twice as hard to keep the chain together otherwise they potentially lose two lots of commission.Sarah
www.rea.ie
S
SteelBlue05
Guest
sounds like a conflict of interest to me. How can you be sure the EA is getting the best price out of the buyer when the EA is also selling the buyers house?
Hi, On the surface it may not appear to be a conflict of interest but the situation is not quite straightforward. Basically, the agent came to us telling us a certain party would accept our price subject to sale of their own. We said ok. The next day the agent phoned to say that if we accepted 10,000 less ,the buyers would sign without any subject to sale of their own. We felt this was ok as it meant that 1) we did not have to worry about their house selling 2) everything would go through quicker. The agent sent our solicitor a letter detailing buyers with an instruction that the buyers were to sign and return the contract by a certain date which would be 2 weeks later. The solicitor sent out the contract ,I'm told, the day after I rang which was the day before the contract and 10% was due. Thinking that this is strange ,I checked to see if the buyers had their house for sale and to my surprise a sign was up and the agent was our good friend .Checked the internet to see what price but not listed anywhere although 2 others houses in the same estate was for sale by same agent. Its now 7 weeks since the date for signing and last week I saw a sale agreed sign for the buyers house. I am wondering if the signing was delayed so that the buyer could have their house sold which is not what was agreed.
Do you mean you haven't signed yet? Sounds weird to me. If that's the case you could back out, I'd imagine, since the agreement was to sign in 2 weeks and it's now 7 (if I understand correctly). Prices have gone way up in the last couple of months (at least in this area) and I bet you could easily get more than you agreed.
Sarah W said:Why would there be a conflict of interest? On the contrary I would expect the EA to work (if that's the right word
Sarah
www.rea.ie
I would tend to agree..based upon prev experience where I used the same EA to sell our house as the one we were buying. The guy buying our house ended up being a total plonker & as a result it dragged out the sale. The sellers of the house we were buying even threatened to pull the sale & move to another EA... our EA had to jump through hoops to keep it stitched together so that he would get his 2 commissions.
So in that instance it worked out OK.
ninsaga
frando said:
This sounds just like the scheming that the BBC programme the other night uncovered. The EA setting your price high to get the instruction and then bringing you expectations down to get the sale done quick.
I’m not assuming it is happening in this case but it seems to me that the EA, that YOU are paying, negotiated the price down with the buyer for no benefit to you – in fact the EA negotiated against your interest (10k less) on behalf of the buyer!
Was the estate agent contracted to sell their house before yours
Hi Sinewave, Last Oct. we engaged the agent having got house value from several. We went with this one because his %fee wa .75% .Others were in excess of 1%. Nothing really happened until Jan. We were not aware when he brought the bidders to view that he had any arrangements with them for the sale of their house and in any conversations he ,at no time, gave any indication that he was involved with them for the sale of their house. It was when I felt something was going on that I checked out their address (our solicitor was advised of the details to enable him draw up a contract). I discovered then the agents sign on the premises . Nothing was or has been shown on the internet , not even the agent's site.
Hi Sinewave, Last Oct. we engaged the agent having got house value from several. We went with this one because his %fee wa .75% .Others were in excess of 1%. Nothing really happened until Jan. We were not aware when he brought the bidders to view that he had any arrangements with them for the sale of their house and in any conversations he ,at no time, gave any indication that he was involved with them for the sale of their house. It was when I felt something was going on that I checked out their address (our solicitor was advised of the details to enable him draw up a contract). I discovered then the agents sign on the premises . Nothing was or has been shown on the internet , not even the agent's site.
Re: Conflict of interest
Hi ClubMan..Checked out IAVA codes of conduct and I got the following"
7. No member shall act for two parties in the same transaction without the full knowledge and prior written consent of both parties.
would you consider if this would apply ?
ClubMan said:
Hi ClubMan..Checked out IAVA codes of conduct and I got the following"
7. No member shall act for two parties in the same transaction without the full knowledge and prior written consent of both parties.
would you consider if this would apply ?
I'm not sure that the IAVI/IPAV code strictly applies here. I believe that the code was put in place to protect purchasers in acquisition situations.
That is to say, when a purchaser has retained the agent to act on their behalf & they then find a property for them. They cannot act on behalf of the vendor and the purchaser without prior written notice. In the case where the property is on the open market, afaik there are no restrictions on the agent acting on behalf of the vendor and the purchaser because technically they are not acting on behalf of the purchaser. They are treated as two separate transactions - i.e. 2 sales. It's very unusual for an agent to act on behalf of a purchaser in a residential transaction.
Frando are you sure that it was the estate agent retained/delayed the signing of contracts? Contracts are issued directly from the vendor's solicitor to the purchaser's solicitor. The purchaser's solicitor is bound to act on their clients' instructions, not on the instructions of the estate agent.
You mention that the estate agent negotiated you down by €10K on the sale of your house - to be honest I'm not sure that the agent acted inappropriately here either. The agent is bound to pass on all and every offers on your property to you. As I see it that's what the agent did, you were not compelled to take the offers, but you decided to. Frankly, as the property was on the market since October, I can understand why.
If you really are concerned about the chances of a conflict of interest why not ask the agent directly?
That is to say, when a purchaser has retained the agent to act on their behalf & they then find a property for them. They cannot act on behalf of the vendor and the purchaser without prior written notice. In the case where the property is on the open market, afaik there are no restrictions on the agent acting on behalf of the vendor and the purchaser because technically they are not acting on behalf of the purchaser. They are treated as two separate transactions - i.e. 2 sales. It's very unusual for an agent to act on behalf of a purchaser in a residential transaction.
Frando are you sure that it was the estate agent retained/delayed the signing of contracts? Contracts are issued directly from the vendor's solicitor to the purchaser's solicitor. The purchaser's solicitor is bound to act on their clients' instructions, not on the instructions of the estate agent.
You mention that the estate agent negotiated you down by €10K on the sale of your house - to be honest I'm not sure that the agent acted inappropriately here either. The agent is bound to pass on all and every offers on your property to you. As I see it that's what the agent did, you were not compelled to take the offers, but you decided to. Frankly, as the property was on the market since October, I can understand why.
If you really are concerned about the chances of a conflict of interest why not ask the agent directly?
Hi Mo3art, " It's very unusual for an agent to act on behalf of a purchaser in a residential transaction"
I feel that as the agent knew that we were not in any hurry , he may have suggested to the buyers to offer 10,000 lower with no subject to offer and then delay contract signing until her had sale agreed on theirs.
"Frando are you sure that it was the estate agent retained/delayed the signing of contracts"
The agent sent a letter to the solicitor outlining details including a date for contract signing. As he knew the solicitor, I thought he may have suggested a delay in sending out the contract as it was not until I rang the day before the contract should have been returned signed (2 weeks after the agents letter) that the contract was ,I'm told, was sent out.
"you were not compelled to take the offers, but you decided to".
Yes. we accepted because 1) we were happy enough with the offer and 2) it meant we did not have to worry about the buyers having a problem selling theirs
"Frankly, as the property was on the market since October, I can understand why"
We intended to only get estimates of the value from different agents and were surprised (inocent lambs) that the values were great . we were told by 2 agents that the house WOULD FLY. We now believe the agents just wanted the house on their books. When the new year came , things hotted up and offers came in quickly.
"If you really are concerned about the chances of a conflict of interest why not ask the agent directly"
We are happy enough with the price and to date the owners of the house we are buying seem contented to wait but my wife is getting P----d off waiting so she going to tackle with the solicitor . As for me I'm easy going but dont like to be duped. Thanks Mo3art for you kind interest.
I feel that as the agent knew that we were not in any hurry , he may have suggested to the buyers to offer 10,000 lower with no subject to offer and then delay contract signing until her had sale agreed on theirs.
"Frando are you sure that it was the estate agent retained/delayed the signing of contracts"
The agent sent a letter to the solicitor outlining details including a date for contract signing. As he knew the solicitor, I thought he may have suggested a delay in sending out the contract as it was not until I rang the day before the contract should have been returned signed (2 weeks after the agents letter) that the contract was ,I'm told, was sent out.
"you were not compelled to take the offers, but you decided to".
Yes. we accepted because 1) we were happy enough with the offer and 2) it meant we did not have to worry about the buyers having a problem selling theirs
"Frankly, as the property was on the market since October, I can understand why"
We intended to only get estimates of the value from different agents and were surprised (inocent lambs) that the values were great . we were told by 2 agents that the house WOULD FLY. We now believe the agents just wanted the house on their books. When the new year came , things hotted up and offers came in quickly.
"If you really are concerned about the chances of a conflict of interest why not ask the agent directly"
We are happy enough with the price and to date the owners of the house we are buying seem contented to wait but my wife is getting P----d off waiting so she going to tackle with the solicitor . As for me I'm easy going but dont like to be duped. Thanks Mo3art for you kind interest.