The Property Ombudsman has reminded buyers of their right to use the mortgage broker of their choice after a Panorama documentary last year exposed some estate agents’ tactics.
In newly-published guidance for consumers, the Ombudsman reinforces the fact that conditional selling, where an estate agent pressures a buyer into using specific services, such as its recommended solicitor or in-house mortgage broker, as a condition of accepting their offer, is prohibited.
It emphasises that buyers are free to choose their own broker, insurance provider, and solicitor.
The advice clarifies that, while an agent does need to confirm your source of funding, regulations made under the Estate Agents Act (1979) say that all offers must be passed to the seller, and that agents cannot discriminate against buyers who do not wish to use their additional services.
It says that an estate agent should not restrict your ability to view a property unless you are using an in-house or associated service, insist on an appointment with their broker to evaluate your funding or discuss mortgage options.
Nor should they suggest your offer will only be taken seriously if you go with their mortgage broker or solicitor.
Chief ombudsman Lesley Horton says: “Conditional selling breaches our code of practice and has no place in a transparent property market.
“Estate agents must ensure that every buyer is treated fairly, with clear and honest communication at every stage of the process.
“Consumers should be able to trust that estate agents are acting fairly and equally, not using unfair tactics to influence their choices.
“Our new guidance is designed to provide home buyers with clear information about their rights and to remind agents of their obligations under the Code of Practice.”
The Ombudsman says it will continue to monitor complaints relating to conditional selling and work closely with government and industry bodies to promote best practice.