Introduction: Do estate agents have to disclose other offers?

Navigating the house-moving process can be immensely daunting, and the uncertainties around buying a property add another layer of stress. Questions around whether your offer will be accepted, or if competing offers will emerge are often subjects of intense discussion, given the lack of clarity in the home-buying procedure. This post explores whether estate agents must disclose other offers and much more.

Are you allowed to know about other offers on a property?

By law, estate agents are mandated to inform prospective buyers about any other offers made on a property, but the exact offer amount remains confidential. So, if you're interested in a property and another party places an offer, the estate agent is obligated to inform you about this.

Furthermore, estate agents must not show any prejudice against any potential buyers. They are responsible for treating every buyer fairly and must not discriminate or threaten to discriminate against a buyer.

For instance, an agent cannot decline to relay your offer to the seller simply because you didn't choose to use their affiliated mortgage broker.

A proficient, certified estate agent can indeed be invaluable. If you're buying or selling a property and finding yourself unsure about which agent to choose, we at At The Place can assist you in finding a certified estate agent in your area.

What occurs when a property attracts multiple offers?

A property receiving numerous offers is not a rarity, particularly if it's a sought-after one. Certain sellers might instigate competitive bidding to maximise the value of their home. Sellers stand to gain if multiple buyers express interest in their property.

In such cases, the estate agent must inform each buyer about the other offers. You can then decide whether to raise your initial offer or move on and start your search anew.

What is the significance of a guide price, and how does it influence your offer?

As of May 2022, both Trading Standards and the Competition and Markets Authority maintained that 'Price on application' can potentially be misleading.

Purchasing prices must now be displayed as a numerical figure, although price ranges are permitted, provided they accurately reflect the property's valuation. Full details, including any additional fees such as a reservation fee or charges for fixtures and fittings, must be clearly listed.

The price of a property generally indicates the lowest amount sellers are willing to accept. Thus, if a property is listed at £250,000, the seller would expect at least this amount, though ideally more.

Most of the time, sellers prefer to wait and gauge the offers they receive before making a decision. In this situation, the estate agent keeps you updated about ongoing offers and the seller's decision.

Is the seller allowed to disclose offer amounts? Sellers can authorize estate agents to reveal other offers to buyers. However, this is unusual and can lead to complications if potential buyers have no means of confirming the offer amount.

For example, a buyer might suspect that the agent is exaggerating the amount to prompt them to raise their offer. This is why agents seldom disclose the exact offer amount to potential buyers.

Can I make an offer on a property listed as 'sold subject to contract'?

According to Trading Standards, if a seller is still open to offers on their property, even after accepting one, 'sold subject to contract' should not appear on the listing. The property should remain listed as still for sale with the price displayed. The seller must provide written confirmation to their estate agent that they are still open to offers.

If a seller is no longer open to offers and has confirmed this in writing, the property should not be listed for sale anymore.

Until the contract exchange, a seller can accept other offers since a property is not technically 'off the market' until then. This situation, known as gazumping, occurs when a seller swaps buyers for a more attractive offer.

So, we've answered 'do estate agents have to disclose other offers?', but what additional information must estate agents provide buyers?

Estate agents must also supply other crucial information such as council tax band or rate, tenure information for properties on sale (freehold or leasehold), and details of any reservation fees. These details must be included in the property listing.

Following a decision by a Trading Standards body, phrases like Price on application (POA) and “offers invited” can no longer be used in property listings. Property portals have ceased accepting listings without a set price.

If a property has a leasehold, agents must also provide potential buyers with details such as the service charge and ground rent amount, the remaining years on the lease, and any known special conditions.

Estate agents must:

• Accurately describe the property
• Not withhold important information
• Forward all offers to the seller
• Avoid showing bias towards or against buyers

While most estate agents comply with these rules and strive to provide the best service, you can lodge a complaint if you believe an agent isn't adhering to them.

Making an informed offer

To answer the question 'do estate agents have to disclose other offers?'

Yes, they do. Although it's improbable that the agent will reveal the exact amount from other prospective buyers, they must inform you about other offers. Consequently, you can use this information to reassess your offer or withdraw your interest.

A competent estate agent will support both the seller and buyer throughout each step, ensuring a successful completion. If you need help with this process, don't hesitate to contact At The Place at 0333 358 0668 or info@at-the-place.com.