Vendor not accepting bid but wants money to 'remember it'

skerry

OK weird title but not sure how else to explain this in a few words as I've never come across this 'tactic' before.

I know someone bidding on a house. Estate agent calls them today to say that the vendor won't accept their bid, but if they give estate agent 10k that they will basically consider the bid if nothing better comes along.

Not even sure if this is legal but can't find anything from Googling it. Basically it seems to me that the estate agent is happy to extract 10k from someone for the privilege of remembering their bid.

Anyone else come across this? Seems like next level shenanigans to me

Jim_Hodge

Sounds dodgy to say the least.

elperello

https://www.boards.ie/discussion/2058253369/vendor-not-accepting-bid-but-wants-money-to-remember-it

Is it in the nature of a refundable deposit ?

skerry

https://www.boards.ie/discussion/comment/119300052#Comment_119300052

My mate obviously said no way. I told him to ring estate agent tomorrow and get them to explain to him how that is even legal. They're asking for money for absolutely nothing in return. And not a small amount of money either. And this is an apparently an established estate agent.

enricoh

I assume the estate agent owes his coke dealer 10k n is stuck!

ForestFire

So how long are they planning on keeping this 10K for, while they're waiting for better offers, before they might consider it!!

And what do you do when you're waiting patiently, 10K down, and presumable unable to bid on other properties.

Ask the Estate Agent (Or homeowner) to give you a deposit of 15K, and you'll promise not to bid on other houses for a few weeks!!

Kurooi

It's normal to deposit 10k with the estate agent when you go sale agreed. This is a 100% refundable deposit.

Not normal at all to ask for it at bidding stage. And did they use the words 'give' and 'remember'? Is this a proper estate agent one of those bigger names? Sounds like some sort of scam if those words were used.

If it is one of the regular, large estate agents personally I'd ask them to clarify what the purpose of this is, and respond saying I'm happy to transfer a deposit once they accept the bid, and that the bid is still on the table for now.

drunkmonkey

You'd want to be guaranteed it's yours and at a well over 20k discount, is the estate agent also the owner or related in some way.

Go check out who owns the house on land registry and join the dots from there before engaging with the estate agent again.

skerry

https://www.boards.ie/discussion/comment/119300110#Comment_119300110

That's the thing. It was all very wishy washy. She told him dont worry you'll get the money back. Like he has a load of 10ks hanging about the house just to spend on giving an estate agent money for basically doing their job and keeping a bid on record. I've never heard the likes of it. Couldn't find anything online so I said I'd ask on here if anyone has come across such madness. Only in Ireland

Will tell him revert with the offer of a very reasonable 15k for the promise of not bidding on other houses 😁

skerry

https://www.boards.ie/discussion/comment/119300142#Comment_119300142

Yeah totally normal when going sale agreed but never heard of this one before. Not sure of exact words used but basically the agent rang to say that if they put on a 10k deposit, they will leave the house on the market but if nobody else comes along the house could be theirs.

Shes effectively asking him for a 10k deposit for her to actually do her job and ring him back if his bid is eventually accepted.

Grumpypants

Feels like they want the deposit and stay open to a higher offer at the same time. Wait a few weeks and if they don't get it, come back to your friend.

skerry

https://www.boards.ie/discussion/comment/119300460#Comment_119300460

Kind of sounds that way alright. I'm just surprised an estate agent with any bit of cop on wouldn't nip that idea in the bud immediately and tell the vendor they either want the offer or they don't

Leg End Reject

All bids, confirmations of deposit etc should be in writing.

I'd email the estate agent, recap on the conversation and ask him/her to explain the requirement of €10k to "remember" a bid that has already been rejected.

It's very dodgy, and I'd go with the poster who speculated the estate agent is in bother and needs money in a hurry.

endofrainbow

Sounds like the kind of thing Caitriona Carey might do.

growleaves

https://www.boards.ie/discussion/2058253369/vendor-not-accepting-bid-but-wants-money-to-remember-it

Scam.

Don't pay.

elperello

Based on the OP's statement that it is an established EA I doubt there is anything criminal involved.

I suspect there maybe something "lost in translation" here.

If the OP's friend is really interested in the house and the price is right it might not be the best move to break off the negotiation.

I would suggest that the friend should consult a solicitor.

Lay out the full facts to them and see what they advise.

MarkR

Is the 10k like a place in the possible queue of people who have bids?

Donald Trump

I couldn't see anything "illegal" with setting your own terms and conditions. Offer + acceptance.

The only thing might be if it was against some code for some professional body that the EA was a member of. If that was the case then you could complain to them about it

L1011

Legal or not, the EA is clearly not normal. Move on, find somewhere else.

Dymo

I think there is crossed wires here.

Maybe this 10K is a holding deposit for the house, but the seller isn't ruling out the buyer getting gazumped if a better offer comes along.

Or the the seller thinks the purchaser is messing around and wants them to put substance to their offer if they're serious.

OP's mate put in their bid and it was rejected, that's it move on or improve you offer.

skerry

https://www.boards.ie/discussion/comment/119303719#Comment_119303719

There's no issue with rejecting a bid the vendor didn't agree with, if that's what they did. They don't want to sell at the offered price, but they also don't want to lose the bidder in case something else comes along and want the bidder to pay for the privilege. No idea where they magicked up a figure of 10k but it seems that's the cost for them to perhaps consider their bid in the future if nothing better comes along.

Either they take 10k as a holding deposit and actually hold the house and go sale agreed or they don't; but they can't take the 10k holding deposit and keep the house on the market as that defeats the whole purpose of a holding deposit.

Anyway, they've gone off the place now and rightly so after that carry on.

magicbastarder

yep, sounds to me like the seller/EA reckon the offered bid is possibly the best they'll get, but want more; so rather than outright object the bid, they're tying the person making the offer in as an insurance policy in case they don't get a higher offer.