A mortgage adviser has accused estate agent Connells of "blatant conditional selling" after reneging on his client's accepted offer.
Jahidu Jaman, mortgage and protection adviser at The Mortgage Providers, told FTAdviser that his client received an email from Connells saying he would need to resubmit his offer, which had previously been accepted.
Jaman said this was because, while his client had previously spoken to Connells in-house mortgage advisers, the client later intended to seek advice from a broker outside the agency.
The email from Connells stated: "The offer was originally submitted to the solicitors along with all other offers and your offer was chosen based on the fact you were using our in-house mortgage service."
It said that this would allow Connells to chase the sale progressively "to a swift conclusion".
It continued: "As the circumstances are now changing we will have to resubmit the offer along with all others again and refer back to you as soon as we have a decision".
This is the very definition of conditional sellingPeak Mortgages and Protection brand director, Rhys ScofieldBut Jaman claimed that Connells would not accept an offer until his client had seen the in-house mortgage adviser for an affordability check.
After informing Connells that they didn't intend on using their in-house adviser and intended to seek advice from Jaman instead, the adviser claimed his client was told to resubmit their offer.
"This is not allowing my client to do what is in their rights," Jaman said, "nowhere does it say is it mandatory that they have to use their in-house advisers."
Jaman also suggested this was against the FCA's consumer duty as his client was told that Connells had received higher offers but chosen Jaman’s client’s due to his use of in-house mortgage advisers.
"From a consumer duty point of view, they’ve not done the right thing", he argued, "they’re not doing right by their own client, let alone mine."
Since receiving the email, Jaman's client has logged a complaint with Connells, describing the situation as "corrupt practices" and stating he was being "blackmailed" into using Connell's mortgage advisers.
Connells response
In response, Connells Estate Agents said: "At Connells any complaint received is investigated with upmost priority. In this instance, the matter reached a resolution for the client within 5 hours.
"An investigation into this email is underway, and if there is an instance of pressurised selling, Connells will take full and appropriate action. Pressurised selling is neither encouraged nor acceptable.
"We are proud to be able to provide a range of services, assisting customers with all aspects of their move and providing a high standard of service."
Industry reaction
Jaman was not alone in his description of Connells' practice in this regard with Peak Mortgages and Protection brand director, Rhys Schofield, describing it as "the very definition of conditional selling".
Additionally, Shaw Financial Services owner and mortgage expert, Lewis Shaw, recounted his own experience with an agency that was a part of The Connells Group.
Shaw said he had also experienced a situation in which his client was told to speak to an in-house mortgage adviser and, after they informed them they would be using an adviser from outside, they were asked to resubmit the offer.
Shaw alleged that this is "simply a case of trying to push their in-house services".
He also alleged that this demonstrated a "culture" within Connells, one which he described as being derived either from being too big to stop people or being implemented from the top down.
Additionally, House and Holiday Home Mortgage director and adviser, Joe Stallard, said: "Unfortunately, we hear of this happening far too often.
"I feel sorry for the buyers; all they want is that property and yet have to put up with these poor tactics and make difficult choices around decisions with huge financial implications."
The Connells Group has been accused of conditional selling in the past with the group legal consultant at one of its agencies, Countrywide, admitting staff could be "perhaps over-exuberant" in August last year.
tom.dunstan@ft.com
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