Do estate agents have to disclose structural problems?

[zetec]

Following on from this thread,

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

The buyers have pulled out and my Mum now has a certificate from the original structural engineer saying what works were done, who by and that no more movement was detected over a period of time.

Mum spoke to the Estate Agent on Monday to ask if there had been any interest, he said yes there had but as soon as he mentioned structural problems, the prospective buyers aren't interested. The Estate Agent told my Mum he had to do this by law? Is this right? For the last buyers nothing was mentioned and it was only when Mum made a note of it in the sellers pack.

[zetec]

DS3R said:

If they know, yes, as it may have an impsct on lending against it, so a buyer has the reasonable right to know before committing to a lender who may later reject their mortgage application post survey.

Thank you.

So to move EA's could fix that problem and at least get people to SEE the house?

The house is being marketed at around £20-30k less than what it should be as it has been a rental property, so any prospective buyer is getting a bargain.

I agree that a lender will have a final say, however, my Mum is willing to pay for a full structural survey to be done on it, will this make a difference?

[zetec]

Renovation said:

But surely now there is NO structural problem.

Exactly, all this happened in 1988, works were done and my Mum has the paperwork that documents it well.

I agree that buying a house that has had structural problems might not appeal to some, it's a bit like buying a car that has been in a crash. I wouldn't expect a car dealers first pitch on that car to be that it had been in an accident though.

I think it is time to move agents.

[zetec]

Thanks for all the replies.

My brother called the EA today as a buyer to see how it is being marketed, he was told, "Steer clear of that one, it's had structural problems, you will never get a mortgage or insurance".

We now know what we need to do.

[zetec]

Spare tyre said:

Seems odd
Why would they offer to take it on if they were not trying to sell it

Will they find no buyers then one will turn up out of the blue offering a low price

The EA has managed the property for the last 20 years, the EA is keen for my Mum to rent it out again and use the rental income to rent elsewhere (Mum is currently living in a house provided by her job). The EA will earn a lot more money through letting than selling.

[zetec]

Mobile Chicane said:

I presume that buildings insurance cover is still being provided by the insurance company who coughed up for the remedial work back in 1988.

If so, 'find' a crack somewhere, and call the insurance company, explaining you're concerned that the original problem may have recurred. They'll send their Structural Engineer round, who will issue a detailed report. Obviously this will state that all is well.

Then, send your free survey to the newly appointed Estate Agent.

Thank you for the good advice.

I'm not sure if the cover is still being provided by the original insurance company, my late father dealt with it all at the time, it is worth mentioning this to my Mum though, thank you.

[zetec]

scenario8 said:

I'd like to see a transcript of that phonecall mentioned above as it would be perverse for an agent to speak like that. I note the OP's reference to the agent wanting to undermine a sale in lieu of a renewed rental agreement, however.

As mentioned previously across a number of threads relating to etsate agency; there appears to be some sort of alternative universe Wild West out there! I only ever seem to come across it on the internet.

Unfortunately there is no transcript.

Another reason for losing trust in this EA is that, yesterday, I took my Mum to the property, the first time she had been there since moving out 20 years ago, the reason for this visit was for her to see the house and to decide if it was worth doing any work to make the house more sellable. Whilst we were there, there was a knock on the door, I answered, a young couple were stood there saying they had the keys to look around (the EA has a set of keys so they can do viewings), there was no EA present at this viewing.

[zetec]

scenario8 said:

How on Earth is this agency in business? Quite seriously, how has word of mouth not prevented this agency from operating? Are they unbelievably cheap or something? Reputation is (almost) everything.

As I have said, this EA has managed the property for the last 20 years, my parents weren't in it to make money, but to keep themselves in the housing market for when my Mum retired and lost the house provided with her job. Any work that needed doing was done, normally by tradesmen hired by the EA. The EA has all receipts for works done and it all appears above board. However, I (and my brother) believe the EA is trying it on knowing that my Mum is now alone as I lost my Dad (who dealt with everything) 2 years ago.

[zetec]

UPDATE

My Mum changed Estate Agents not long after my last posts on this thread. It was agreed that the house would be taken off the market for a while so it could be seen by a fresh market.

The house was remarketed, new photos and write up etc.

Within a week there had been 4 offers for the full asking price (each offer was made aware of the house's previous issues), my Mum picked a buyer who had a £40k deposit.

There has been a lot of too-ing and fro-ing between solicitors but the purchase completed yesterday.