Welcome to the Exciting World of Home Buying, but don’t let Conditional selling ruin the excitement!
Ah, the joys of hunting for your first home! You’ve scrimped and saved for that elusive deposit, earmarked funds for those pesky fees, and practically memorized every listing on Rightmove in your quest for the perfect abode. You’re armed with a Mortgage In Principle and a sense of purpose. But then, out of the blue, a curveball… Conditional selling!
You’re ready to make an offer on your dream house, only to be told by the estate agent that, surprise, you must ditch your trusty mortgage broker for theirs. Talk about a plot twist!
The Mystery of Conditional Selling
What Exactly is a Conditional Sale?
Let’s discuss this little mystery. Conditional selling in the estate agency world is like being told you can only buy your favorite chocolate if you also buy a specific brand of milk. In the housing market, it occurs when an estate agent or salesperson subtly (or not so subtly) nudges you towards using their in-house mortgage broker, financial advisor, or solicitor.
Imagine this: You’ve got your Mortgage In Principle, but the estate agent hints (or outright states) that your offer is only going onto the seller’s table if you play ball with their recommended advisors. Sometimes, they’ll dangle the carrot of using your own broker but insist on a ‘just-for-show’ assessment with their in-house team for “affordability checks”. to get a bum on a seat, but once you’re locked in the room the hard sell begins.
Is Conditional Selling Legal? (Spoiler: Nope!)
Yes, you guessed it, conditional selling is as legal as a square circle. According to the Estate Agents Act 1979, it’s a no-go. Every offer must see the light of day with the seller, regardless of your choice of mortgage broker. The offer needs to be provided to the seller within 2 working days of it being received.
But let’s face it, some estate agents can’t resist the temptation, especially in a challenging market where business levels are down and fighting to squeeze every penny out of a deal. This, is combined with buyers who are more anxious than kids in a candy store.
Despite it being illegal, it continues nonetheless. Often hidden behind unofficial conversations that aren’t recorded. Despite countless press coverage in the national press, it continues regularly.
Can You Escape a Conditional Sale?t
Pulling the Plug Before It’s Too Late
If you find yourself tangled in a conditional sale web, remember, that you can back out before contracts are signed. If something smells fishy, it might be time to swim away. Seek out an independent broker who genuinely has your best interest at heart. They might just snag you a sweeter mortgage deal than the one dangled by the estate agent.
Discovering Your Perfect Mortgage Match
A Buffet of Mortgage Options Awaits!
swerving the estate agent’s broker could open up a whole new world of mortgage possibilities. We’re talking about a smorgasbord of over 100 lenders and 20,000 mortgage products. Whether your finances are as straight as an arrow or as complicated as a Rubik’s Cube, Dimora Mortgages has got you covered.
How to avoid being caught in the trap
Be prepared, having a Mortgage broker, AIP and a proposed conveyancer you intend to use can all go in your favour and shouldn’t give the agent a chance to push their services upon you. If they do it’s important to under stand your rights and stick to your guns.
So there you have it, a whirlwind tour of the tricky terrain of conditional selling. With this guide in hand, you’re now equipped to navigate the housing market with confidence and perhaps a chuckle or two. Happy house hunting!
