Estate Agents Duty to disclose why a house sale failed???

[DavMan]

Hi, does an estate agent have to disclose why a property sale fell through? I'm looking to buy a property that has come back on to the market but before I ask the agent why it's back on the market I wanted to know my rights. I've heard through the grapevine that the previous purchaser pulled out because their survey revealed defects in the roof timbers. Apparently the estate agent is aware of this but has not mentioned it to me yet. Someone told me that if the agent is aware of an adverse survey they must disclose this information rather than me asking? If anyone knows the Estate Agent Act in detail, in particular the above point I would be grateful. Thanks

[sandyRoe]

Are people, even Estate Agents, obliged to cry: 'Rotten fish'?

[mrs_overall]

The estate agent is employed by the seller and acts for the seller. I'm no expert but I don't think he has any obligation to reveal faults to a would be purchaser.

[silliemillie]

I had a similar situation and the Estate Agent told be, the survey was the property of the previous potential purchaser (the person who had pulled out) as they had paid for it so it was not for him to say what was in it.

Dont know if its true or he was fobbing me off but it does sound reasonable i suppose.

[gness]

If the Estate Agent is aware of a problem they must tell you if you ask. Search for Bad House Survey Results.

[bert_h]

The estate agent simply can't do that. Think about this: suppose somebody I really really don't like puts his house up for sale, I go to view it and get a surveyor pal to report to me that it's falling to bits, then if the estate agent HAS A DUTY to pass that on to any genuinely interested purchasers, the owner is completely shafted, which is just what I wanted.

[woofgang]

The estate agent does not have to tell you ANYTHING but he cannot lie. Estate agents work for the seller, not the buyer. The survey will have been done for the use only of the person who commissioned the survey. If it was a previous buyer, then the previous buyer may well have told the estate agent that he was pulling out because of a bad survey and this may or may not be true, it might be an attempt on the part of the buyer to bring the price down.
I am not sure why you think you have a right to know anything about a house that does not belong to you?

[pdq1]

Caveat Emptor

[hc4361]

Rely on your own surveys, your own legal advice and your own common sense.
The estate agent is not working for you, he is for the seller. Any previous surveyor was not working for the seller, the estate agent or you. You cannot rely on it in law even if you read it.

[starone]

Yes, caveat emptor - let the buyer beware. Best to get your own survey if you are keen on buying the house.

[gness]

Not a duty to pass it on but must answer honestly. Of course you must have your own survey done but you have redress if your questions are answered dishonestly and bert your friend wouldn`t last long doing that now would he?

[woofgang]

Yes indeed they must answer honestly and an honest answer would be " We did not commission that survey and have not read it, therefore cannot comment"

[DavMan]

My understanding is that the previous purchasers provided a copy of the adverse survey report and the estate agents passed a copy on to the vendors for their information. Subsequently the original purchasers pulled out of the purchase and the agents have put the house back up for sale. My understanding is that due to this situation where the agent is actually aware of an adverse survey - should they disclose this information on to the next buyer? I thought they were under a duty to disclose under the consumer protection act or the estate gents act 1979?? Any solicitors out there that can clear this matter up??

[woofgang]

They may be aware of a survey. If they have any sense at all, they have not read it. They can also refuse to discuss their client's affairs with you. Unless surveys are sold for general use and publication, they are usually sold as for the use of the commissioner only. So far as I can see, all they have done is refused to comment, they have not lied to you or misled you. If the survey was given to the vendors by the prospective purchaser, it may well have passed through the estate agent but that does not make the information " theirs" to disclose. Why don't you talk to the vendor?

[woofgang]

http://www.johnwood.c...-Code-of-Conduct.aspx

See Point 4.
So far as I can tell, although the consumer protection act may require estate agents to declare knowledge of an adverse survey, this doesn't yet seem to have been tested in law.
There is certainly no requirement on them to tell you why a previous sale fell through.
I am not a legal beagle but the problem would seem to me to partly depend on what "adverse survey" means in law.
When we bought our current house, there were various things wrong that needed fixing before we finally agreed to buy. I wouldn't think that would come under the heading of an adverse survey though.
If the previous purchaser decided on the basis of the survey that the house wasn't worth the asking price, I don't think you would get away with calling that an adverse survey either.
You aren't an injured party, not even someone with a "valid" interest from what you have said. So again my question would be why should the estate agent tell you anything?

[tonywiltshire]

You may find the Property Misdescriptions Act 1991 of some interest, though it has been claimed that the protection this act provides already exists.
Estate Agent must not mislead you if you ask a direct question, they can easily evade a question such as “Is there anything wrong with this property”? There was a case in Dorset where four different estate agents all failed to mention a property they were selling was situated on a cliff threatened by erosion. They are not obliged to reveal negative features but must not mislead you. So ask the right question, preferably in writing, and ask for a written answer, they may just ignore you.

[woofgang]

that is why i said if they had any sense they would not have read the survey tony!

[tonywiltshire]

Thank you for your comments woofgang I think many people generally gave the right information, of which you were of course one.

[cathfromsaron]

if i *really* liked the design and location i would find out how much any alleged defects would take to solve, put that reasoning in with a reduced offer in writing, and therefore buy the house for a sensible price!

cath x