Can estate agents buy houses they are selling?

[Four Cofffee]

Call me suspicious, but I have just seen a pretty run down old country house where in the particulars it notes; " The vendor is an employee of Bloggs and Co" where Bloggs and co are the Estate agents.

My instant reaction should perhaps be that maybe they have inherited the old pile and are using their employer to sell it, or perhaps have been living there and decided to downsize. However, my gut reaction is that they have bought it for a song from some old dear and are flipping it to make a few quick £££, probably because of my previous experiences where agents employees have snapped up property without it reaching the market, offers not being passed on to a vendor and personal offers I have been made by agents at well below the final sale price.

So my question....Are they allowed to buy properties themselves ?

Once the Land Registry site re-opens the truth may become clearer!

[maser_spyder]

You're right to smell a rat, but for whatever reason they are selling, it would be unusual for an Estate Agent to use a different agent for selling, rather than the one they work for!

[Merlot]

Yes, they can. You have to declare it though to the vendor.

I work part-time for an estate agents (Throwback to my Uni days) and recently purchased a house from one of our vendors. I got a good price, she got an effortless sale with no worries usually associated with selling your house.

[RichB]

Yes they can, indeed as everybody buys and sells property it would be strange not to expect them to use their own business to do so.

[Deva Link]

Four Cofffee said:

they have bought it for a song from some old dear and are flipping it to make a few quick £££,

An agent near us got done (jailed for 30 months) for undervaluing property and accepting a "finders fee" - she was caught by a BBC investigation: http://archive.knutsfordguardian.co.uk/2006/3/2/26...

[mybrainhurts]

Deva Link said:

Four Cofffee said:

they have bought it for a song from some old dear and are flipping it to make a few quick £££,

An agent near us got done (jailed for 30 months) for undervaluing property and accepting a "finders fee" - she was caught by a BBC investigation: http://archive.knutsfordguardian.co.uk/2006/3/2/26...

Excellent news. Good to hear the BBC has some limited use...

[eldar]

Merlot said:

Yes, they can. You have to declare it though to the vendor.

I work part-time for an estate agents (Throwback to my Uni days) and recently purchased a house from one of our vendors. I got a good price, she got an effortless sale with no worries usually associated with selling your house.

This is right. The declaration has to be clear, open and unambiguous - that done, no problem. Everyone concerned knows who has what interest.

[davidjpowell]

Precisely. My dad used to run his own Estate Agency and provided it was disclosed that he was selling his one house (and he was not going to pay the competition to do it!). Was always a bit awkward, and even before all the shysters you get nowadays got involved could get complicated with mistrustful buyers.

He did buy some houses that he had valued - but always suggested that the sellers at least got valuations from other agents for piece of mind, as well as making them aware of his job (but as they booked the valuation they did know about that!).

[sider]

When we sold our last place, we were dealing with a young girl at the estate agents who thought they had someone interested. 3 days later it was sold.

Then the girl from the EA (who happened to live in our street) told us that it was her best mate who was buying. Im just glad it was the main man at the EA who did the valuation and not her!

Still, we got what we wanted for it.