Mortgage Solutions and its sister title Specialist Lending Solutions select the most thoughtful or thought-provoking comment as Star Letter.
This week the accolade goes to Arron Bardoe for his response to the post: Government to enforce estate agent-broker referral fee disclosure as ban considered.
He said: “This is excellent news and something I have been advocating for some years. While there is more that could be done, this will be a good start.
“Yes businesses need to make money, but this should not be to the detriment of consumers.
“Personally, I would prefer an outright ban on referrals of services to buyers by agents of the vendor, but this could mean some consumers struggling to find help.”
This man is an idiot. Why would it be good of referrals were stopped? Many of my colleagues garner excellent leads and referrals from Agents. This is not detrimental in the slightest and generally the clients are delighted! If Arron Bardoe worked for me with such jumped up stupidity Id sack him on the spot!
Rubbish!!
Arron Bardoe is wrong.
There is nothing wrong with referals to any Profession, thousands of clients are happy the way it works
now.
It would seem obvious where some people receive their business.
While I would not tarnish all or even the majority with the same brush, alas I suspect all brokers who do not have a tie to an estate agent will have stories of sharp practices by in some estate agents.
It is quite common for some agents to insist all buyers are “vetted” by their in-house broker, even though this has not been a stated requirement of the vendor. Thereon, often the recommended solicitor is required as they are quicker than all the others apparently.
As mentioned, the light touch regulation already is simply not working and being outright ignored by some agents. Most proper professions do not allow you to be in the employ of one party and then sell services to the other side of the transaction. This avoids conflict of interests and ensure protection for the consumer.
I do not propose agents be barred from selling servcies (brokers and solicitors for the purpose of this response) to their vendor, as there is no conflict. Agency based brokers would still get business, but only from one side of the transaction. Thereon, they would not face competition from the agent selling their vendor their new home – almost status quo in terms of lead generation.
The loss would be first time buyers, which I agree needs to be addressed as they may struggle to find the right professionals, but we should bear in mind these are the most vulnerable buyers.
As cited in my earlier article, one only has to look at the ground rent scandal where professionals (yes brokers and solicitors) supposedly acting for consumers failed to disclose the risk of ground rents doubling every 10 years. These people now face never being able to sell their homes.
Disclosure of commissions would not have stopped this scandal, but barring the agent of the vendor from selling services to buyers most probably would.
Those disagreeing with my comments did not appear to cite anything that supports the current system. Where is the customer in “garner excellent leads and referrals from Agents” and, while I agree with ” thousands of clients are happy the way it works”, I suggest equally thousands are not….I can name a few.
The self-interest of professionals should not outweigh consumer protection.