18th April 2013
Consumers being misled over quick house sales, OFT warns
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Quick sale companies offer to sell a house in as
little as a week
Consumers who want to sell their
houses via so-called "quick sale" companies are in danger of being misled,
according to the Office of Fair Trading (OFT).
Quick house sale providers offer to buy houses in as little as seven days,
but at a discount to the full market value.
The OFT is warning that homeowners may receive much less for their property
than it is worth.
"Any losses could be very high," it said.
In some cases such companies agree to buy a house, but then reduce the price
at the very last minute.
"Businesses offering quick house sales may provide a useful service for
homeowners who need to unlock cash in a hurry," said Cavendish Elithorn of the
OFT.
"However, they are often used by consumers in vulnerable situations and
therefore we are concerned about the risk of consumers being misled and losing
out on large sums of money," he said.
Consumers identified as particularly at risk include those selling after a
relationship breakdown, or the elderly who might need the money to pay for
long-term care.
During an investigation last year, the BBC spoke to two people who were angry
at the way they had been treated by quick sale companies.
OFT concerns
• unclear fee structures
• reducing the price at the last minute
• making misleading claims about a property's value
• falsely claiming to be a cash buyer
• exclusive contracts, preventing sales to other buyers
Malcolm Haywood, from Lincolnshire, wanted to sell his
house quickly, and agreed to a sale price of £120,000.
But just before the deal was signed, the company involved, Gateway Homes UK,
dropped the price to £80,000.
Pat Hardy, from Teesside, signed a similar deal with Tom Craven Property.
She had agreed a purchase price of £75,000, but the day before the removal
men were due to arrive, they lowered the offer to £40,000.
Both companies insisted that the number of complaints amounted to less than
1% of their customers.
The OFT said practices which cause concern include unclear fee structures,
reducing the price at the last minute, and wrongly claiming to be a cash
buyer.
It also warned about companies making false property valuations, and tying
customers into contracts which prevent them selling to other people, should
alternative, and more generous offers emerge.
The OFT would now like to hear from anyone who has used a quick sale
provider, whether their experience is good or bad.
Following last year's BBC investigation, the Law Society called for tougher
regulation of the industry.
HADGKISS
HUGHES AND BEALE
SOLICITORS
MOVING
HOUSE
Gordon
Keir and Anne Norton have been dealing with legal problems for many years and
have over 60 years’ experience between them.
We look
after you from the time you instruct the firm until you collect your keys and
beyond.
Gordon
and Anne undertake:
·
Sales and Purchases of residential
freehold and leasehold property
·
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·
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·
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·
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·
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·
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·
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·
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HADGKISS HUGHES AND BEALE
83 ALCESTER ROAD, MOSELEY,
BIRMINGHAM B13 8EB
TELEPHONE: 0121 449 5050
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