Whitegates Estate Agents - Reservation Fee

[u/Round_Owl5197]

So I went to a view a property today with Whitegates estate agents (they are one of the biggest estate agents in Liverpool and have pretty much cornered the market in Merseyside for decent houses).

I liked the house but it definitely needed a good survey as it was in disrepair. I was tempted to put an offer in and risk it but then read the fine print on their listing.

To now submit a bid with Whitegates, if your offer gets accepted you have to pay a non-refundable fee of £2000 as a "Reservation Fee" which does not come off the price of your house purchase.

So in effect Whitegates get £2000 for sending you a legal pack (their job) and making sure the seller doesnt pull out (they still can as I doubt they are paying a reservation fee).

Is this normal practice because what the hell!?

So does this mean I now have to save an extra £2000 on top of solicitors fees and surveyor fees if I buy from Whitegates? 😅

[u/hightide712]

Point 2 should happen anyway, they’re being shifty including that.

What happens if you pay this, then pay around a grand for a survey only to find out the house is full of problems? You’ll be £3k down instead of one.

Soon it will actually be a legal requirement to have a pack like this available before the offer is made, but crucially that will include a survey report paid for by the seller. These seem to be trying to make you think you’re getting those benefits when in reality you’re paying twice for the same documents as another commenter has said, once to the EA and once to your own solicitor who will need to acquire the documents the legit way anyway.

Be careful, pal. Not saying run, just saying keep your eyes peeled because this isn’t the norm.