Earlier this week the Property Ombudsman issued new guidance on “conditional selling”, making it clear that buyers should never be pressured to use a particular mortgage broker, solicitor, or other service provider as a condition of having their offer considered by an estate agent.
Conditional selling is a practice where an estate agent suggests – explicitly or implicitly – that a buyer must use the agent’s preferred services (such as their recommended solicitor, mortgage broker, or surveyor) in order for their offer to be taken seriously. While agents are perfectly entitled to recommend services, what they cannot do is make your ability to proceed with an offer dependent on using those services. It used to be common practice the estate agent would then collect a fee for making the referral. Thankfully this practice is becoming less and less commonplace.
This kind of pressure can affect one of the biggest financial decisions most people ever make. It undermines competition, limits your ability to choose professionals who offer the best value for your circumstances, and may lead to additional costs or conflicts of interest. More importantly the buyer may find the recommendation has been made purely for the referral fee that will be paid rather than a recommendation for a good level of service.
The Ombudsman’s guidance reinforces a basic but critical consumer protection: you always have the right to choose your own conveyancer, broker, and other professional advisers without fear of your offer being sidelined.
The Ombudsman’s Code of Practice already prohibits estate agents from making offers conditional on the use of particular third-party services. But the recent statement has arrived against a backdrop of public concern about these practices, highlighted in part by a BBC Panorama documentary last year. The Ombudsman’s updated guidance aims to help buyers recognise unfair tactics and know what to do when they encounter them.
Key points to be aware of for anyone looking to buy or sell a home:
- You are free to choose your solicitor or conveyancer. No estate agent can insist that you must use “their” solicitor in order for your offer to be viewed. If you do choose to follow your agent’s recommendations enquire if they will receive a fee in return for making the recommendation, you can then determine if the referral is based on a known high level of service or simply for the fee.
- You can choose your mortgage broker or financial adviser. Your source of funding is your business, and agents must treat all buyers fairly regardless of which broker you use.
- Estate agents must be transparent and honest in all communications. You should not be misled or pressured into taking any professional service you don’t want.
At Home Property Law trust and clarity are everything. We act for you – whether you’re buying or selling – and it’s vital that you feel supported and independent in every choice you make. The Ombudsman’s reaffirmation of your rights strengthens this position. It means you can instruct a conveyancer who you believe is right for you – based on expertise, cost, and personal trust.
If you are looking to buy or sell a home and have any queries please reach out to the team at Home Property Law.
