Access Financial Services has launched a campaign to support brokers when real estate agents pressure homebuyers to use their in-house mortgage broker.
The campaign will allow brokers who feel threatened by the conditional sale to have access to a free model letter.
The letter was designed to be sent initially to the realtor to inform them of the various parts of the Property Ombudsman’s Code of Practice for Residential Realtors which demonstrate that this practice is against the law.
The broker will also be able to provide the necessary financial qualification, including a certificate of principle decision and proof of deposit funds to prove that his client can afford the purchase of the house.
If the realtor is unresponsive or continues to pressure the client, Access FS defends the broker and reports the realtor to the Property Ombudsman.
This will need to be done with evidence of the offence, including the letter sent to the estate agent and one from the client describing the pressure they were under.
The campaign comes after Access FS said a significant minority of estate agents use ‘bullying tactics’ to ensure they get the buyer’s mortgage business and commission on the sale of the House.
Access Financial Services chief executive Karl Wilkinson said: “Our own brokers have been impacted by this conditional sale by a minority of estate agents. This can cause distress to clients and sometimes prevent them from working with brokers with whom they have a long-standing relationship.
“As well as helping our own advisors, we wanted to offer our support to others in the industry who continue to suffer from this questionable practice. Now more than ever, as we head into recession, it’s important , for both brokers and real estate agents, to support each other so that buyers can benefit from the best advice.
“We often hear from real estate agents stating the need to financially qualify a buyer when that buyer already has an agreement in principle. it is illegal for them to insist that a customer use them.
“While the majority of Estate Agents operate within the Code and enjoy a positive relationship with many Mortgage Brokers, it is time to weed out the poor practice of the few that damage things for the rest. Our letter templates are a step forward to help accomplish this.