The Ombudsman Files – Compensation awarded after no disclosure of competing buyer
Summary
The Property Ombudsman upheld a complaint against an estate agent for failing to disclose a competing buyer and the existence of a contract race. The buyers were awarded £790, matching the cost of a mortgage valuation survey they incurred without being properly informed of the risk.
Why it matters
This reinforces agents’ obligations to be transparent about competing offers and rival purchasers, which affects how buyers decide whether to proceed and incur costs. For surveyors, it highlights the point at which valuation and survey instructions may be exposed to avoidable client loss if sales status is not clearly communicated.
Key points
- TPO found no evidence the buyers were told about the competing purchaser.
- The agent also failed to notify them that they were in a contract race.
- The buyers incurred a £790 mortgage valuation survey cost before learning of the competing interest.
- The complaint was upheld under the Code of Practice for Residential Estate Agents.
- Compensation was awarded to reflect the survey cost and potential inconvenience.
Organisations:
The Property Ombudsman, The Negotiator
Regulations:
Code of Practice for Residential Estate Agents
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