Estate Agent sold property to a family member. Is this legal?

Monte2014

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A number of Section 23 holiday homes (20+) were built in the early 2000's. These properties were owned by various individuals and companies. Some owned just one house while others own multiple houses. When the financial crisis hit in 2008, some of the companies who owned the properties went into receivership.

An estate agent was appointed to sell certain properties. It is worth noting that the same estate agent owned a few of the properties and was (and still is) in personal financial difficulty. During this time I approached the estate agent expressing an interest in purchasing a property if they became available and to keep me updated. I was overseas at the time. I kept in contact with the estate agent by email over the following months but he always responded by saying there was no update and these things tend to move slowly.

After a few months I noticed that 4 properties were advertised by the estate agent on daft and myhome. However, when I contacted the estate agent he said they were already gone sale agreed to individual's for €43k each. Six months later another house came up for sale by a different estate agent and this sold for €90k!

It is 18 months since we last communicated but I have since found out that he sold 2 of the properties to his daughter. Firstly, I imagine this is a complete conflict of interest. Secondly, I would have thought that an estate agent should endeavor to get the best market price for a property on behalf of its client. Thirdly, I would have thought that the estate agent had a duty of care to keep me informed. Finally, I would have thought that the receiver (through the estate agent) endeavor to get the best price? However, it may have been the case that the receiver was satisfied for the properties to be sold to the estate agents daughter but I somehow doubt this is permissible?

What can I do? In the first instance, I would like to meet with the estate agent to discuss. Also, I believe I can go through the complaints procedure as laid down by the Property Services Regulatory Authority's (PSRA). Any advice would be appreciated.
 
Thirdly, I would have thought that the estate agent had a duty of care to keep me informed.

You are not his client. He has no legal duty to you.

If the Receiver got enough to cover the debt, he may have been happy, but the owner would not have been.

It's probably worth complaining to him in the first place and then to the PSRA. But don't expect to gain anything from it. He certainly won't sell to you in the future.

Brendan
 
Yes T McGibney. You are correct. The estate agent is selling on behalf of the receiver and the receiver, I presume, has a duty of care to get the best price in the market. Obviously, the receiver is not in the business of selling property so he engages an estate agent. I would have thought that the agent, acting on behalf of the receiver, has a duty of care to get the best price on the market?
 
I would have thought that the agent, acting on behalf of the receiver, has a duty of care to get the best price on the market?

The agent has a responsibility to their client. That client however is fully entitled to prioritise factors other than price, and might prefer to accept a lower valuation for a quick sale.
 
Forget about it, it is not worth the hassle, your expectations were too high anyway and never likely to have been met, hang tight and you might get another chance, at least now you know the value of the units so place a dated offer in writing to the same estate agent in the event he gets another one and see what happens.

You have to bait the hook to get a bite.
 
I did a bit of research on the PSRA and found that from the 6th July 2012 all estate agents legally operating in Ireland are regulated and licensed by the Property Services Regulatory Authority, also known as the PSRA. The PSRA published a Code of Practice which licenced agents must abide to. This Code sets out the minimum ethical standards and procedures that clients should expect from licenced agents. It seems quite clear on conflict of interest.

Anyway, thank you for your replies.
 
It seems quite clear on conflict of interest
Do you know for a fact that the agent didn't inform their client of a conflict of interest?

The scenario sounds like a conflict, and it wouldn't be a unique case, but once the agent informed the seller of conflicts he should have met the PRSA standards.
 
I did a bit of research on the PSRA and found that from the 6th July 2012 all estate agents legally operating in Ireland are regulated and licensed by the Property Services Regulatory Authority, also known as the PSRA. The PSRA published a Code of Practice which licenced agents must abide to. This Code sets out the minimum ethical standards and procedures that clients should expect from licenced agents. It seems quite clear on conflict of interest.

Anyway, thank you for your replies.

You keep making wild assumptions and presenting them as facts! You have no standing in the issue and you have absolutely no idea what information passed between the agent and their client.
 
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