Consumer Guide to Conditional Selling in Estate Agency

Conditional selling is when an estate agent makes it seem like you can only buy a property if you also use in-house or associated services like their mortgage adviser, conveyancer, or insurance provider. 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.

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 and/or discuss mortgage options
• Suggest your offer will only be taken seriously if you go with their mortgage broker or solicitor
• Say your offer won’t be put forward unless you use these services

They can recommend services, but it must be clear that whether you choose to use them or not, your ability to view and make offers is not negatively affected.

Watch out for the following phrases which are all examples of conditional selling:

• “Your offer won’t be put to the seller unless you use our mortgage adviser.”
• “The seller will only accept buyers who use our solicitor.”
• “You’ll stand a better chance if you go with our in-house services.”

• All offers must be passed by the agent to the seller promptly, whatever services you use
• You are free to choose your own mortgage broker, solicitor, or insurance provider
• You should never be disadvantaged by saying no to an agent’s recommendation

• Say no firmly: make it clear you know your rights – you can send this guide to the agent
• Keep records: make notes of phone calls, ask the agent to put it in writing and save emails
• Speak to the seller if possible: they may be unaware that the agent is putting pressure on you
• Raise it with the branch manager: sometimes it is a staff issue
• Make a formal complaint: explain how the situation has affected you
• Escalate to the redress scheme: if the agent doesn’t deal with your complaint within 8 weeks, or you receive a final response you disagree with, you can refer the complaint to The Property Ombudsman or  Property Redress
• Refer the issue to Trading Standards: where business practices are potentially unlawful, Trading Standards are empowered to take action against a business that could result in penalties such as fines

Consumer Guide Conditional Selling (PDF)