An estate agent refused to put my offer forward, is that legal? 

I am in the process of selling my apartment so that I can move to an area closer to my new job. Despite all the doom and gloom reported about house prices, I have received several offers and have now accepted an offer above the asking price.

Earlier this week I saw an apartment nearby that I’m looking for, which seemed perfect. However, when I called the agent, they refused to let me see it, saying it was already on sale.

So I made an offer over the asking price over the phone. They still seemed reluctant to take me seriously and the broker said he would put me on a reserve list in case the current buyer backed out. Finally, after a few more calls, they finally put me through to the manager who agreed to put my offer to the seller.

My question is: can a real estate agent refuse viewings or even make an offer as soon as a property is on offer? Why would they do this if it is in their financial interest to sell for a higher price? Also, why was it showing as available on Rightmove if it had been on sale for over a week?

Ed Magnus of This is Money replies: It’s great that you managed to get the asking price of your current home.

When it comes to the property you want to buy, realtors must treat buyers fairly.

Bids must be passed on to the selling party quickly and in writing.

Brokers are also required by law to pass on any offer for the title right up to the contract change.

We can only speculate why the broker initially seemed reluctant to put forward your offer.

It could be due to lack of training or inexperience, or perhaps even the financial self-interest of a particular negotiator trying to avoid overshadowing their deal.

While most brokers want to get the best possible price for the seller, they may also prefer a buyer who they believe is fully committed and in the best position to complete transactions quickly.

It is worth remembering that most estate agents get a commission when the property is sold.

For example, the estate agent may charge a 2 percent fee, which means if a property sells for £300,000, they get a £6,000 discount.

The sales negotiator involved usually also receives a small discount on this fee. For example, 10 percent. So in this example they get £600 out of £6,000. This is usually paid to the negotiator whose buyer is the one buying the property.

This means that while £10,000 more can mean a lot to a seller, it may not be much of a motivation for the estate agent. For a 2 per cent fee, that works out to £200 more for the company or just £20 more for the negotiator responsible for the deal.

In terms of the properties listed as available on Rightmove, this remains relatively common, despite being hugely frustrating for buyers.

From a business point of view, it can make sense for a real estate agent to keep a property for sale even after it has gone under offer.

They want people to get in touch so they can add them to their books for future listings, or possibly have them look at another house.

It also allows the broker to line up replacement buyers for the property in case the deal falls through.

We spoke with Henry Pryora professional buyer’s agent, and Paul Offleycompliance officer at The Guild of Property Professionals for their advice on this.

Can a broker refuse to make an offer?

Henry Pryor replies: A broker is required by law to report every offer to his client at every stage of the process and you were right for him to do so.

A broker can only refuse access to a viewing or reject an offer if his client has formally instructed him to do so.

But in addition to being morally disapproved, when staring there is always the risk that the second buyer will not perform.

Going back to the original buyer is humiliating and often unsuccessful. While the broker gets the blame when it happens, it’s the seller who makes the decision to stare.

The broker is unlikely to recommend this unless the new offer is significantly better, and an increased offer in real terms probably won’t make much of a difference to his commission.

Paul Offley replies: All further offers received must always be referred to the seller, unless they contain certain conditions or are below a threshold set by the seller.

When a seller decides to accept an offer, it is up to him to contact his broker and decide if he is open to further offers.

If an estate agent has declined your viewing, it is likely because the seller wants to complete the sale as quickly as possible.

While a potential buyer may be willing to outbid the accepted offer, some sellers may hesitate because they fear rejecting a trustworthy initial offer.

Homeowners with an emotional connection to a home may prefer to deal with a buyer who they believe will properly value the home, regardless of the price offered.

Shouldn’t the property be listed as an underbid?

Henry Pryor replies: If a deal has been formally agreed upon, best practice says that a property should be described as ‘under offer’ or ‘sold under contract’.

This is to prevent a buyer from going through the trouble and expense of viewing a property when an offer has already been accepted.

It also reduces the chance of an original buyer being blindsided by the seller who decides to take a different offer and have to write off their failed costs.

Paul Offley replies: Sellers can choose to keep promoting their property in case there are higher bids and to show previous viewers that this is their last chance to bid.

When an offer has been accepted and the seller wishes to proceed with other viewings, all parties should be notified.

Many estate agents list their properties on third-party websites such as Rightmove and Zoopla and while these should be updated regularly, there have been delays due to the rush of recent years.

Nevertheless, the correct status of the property must always be displayed on these portals. The Property Ombudsman’s code of conduct for the sale of homes states that how the estate agent describes or advertises the property should reflect its true status.

If the transaction is somewhere between accepting an offer and exchanging contracts, the status of the property should be sold under reserve or simply “under offer.”

Once contracts are exchanged, it should only be advertised as sold.

To avoid disappointment, ask the estate agent what stage of the sales process the property is in before you view it.

If there is more than a few days between the first meeting and the viewing, check again on the day itself with the estate agent who is conducting the viewing.