Lesson 6 – Customer Choice, Pressure and Conditional Selling

6.1 Genuine customer choice

Customers should understand that:

• They do not have to accept the referral;
• They may compare other providers;
• They can obtain independent quotations;
• They may decline without penalty;
• Their offer should still be communicated properly;
• Their application should not be deliberately disadvantaged; and
• Their decision should not result in poorer service.

6.2 What is conditional selling?

Conditional selling occurs where access to one service or transaction is improperly made dependent on purchasing another service.

Examples may include telling a buyer:

• Their offer will only be submitted if they use MyEstate’s mortgage broker;
• Their offer is more likely to be accepted if they use the recommended conveyancer;
• They cannot view a property unless they attend a mortgage appointment;
• The property is only available through MyEstate’s related services; or
• They must buy an insurance product to proceed.

6.3 Legitimate qualification versus conditional selling

MyEstate may need to establish whether a buyer is able to proceed. This may include asking for:

• Proof of funds;
• An agreement in principle;
• Details of a property chain; or
• Evidence of the buyer’s position.

However, the buyer should not normally be required to use MyEstate’s associated broker to establish that position if suitable evidence is available from elsewhere.

Appropriate wording

“We need to confirm your purchasing position. You may provide suitable evidence from your own lender or broker. If you would like, we can also introduce you to our associated mortgage broker. The choice is yours.”

Inappropriate wording

“You must speak to our broker before we will put your offer forward.”

6.4 Pressure and vulnerability

Employees must take particular care where a customer:

• Is a first-time buyer or tenant;
• Has limited English;
• Is unfamiliar with property transactions;
• Is distressed;
• Has a disability affecting communication;
• Is under financial pressure;
• Believes the service is compulsory; or
• Feels that refusing may jeopardise the property.

6.5 Opting in

The customer should actively agree to the introduction. Staff should not rely on:

• Pre-ticked boxes;
• Silence;
• An assumption that the customer agrees;
• Bundled consent hidden in unrelated terms; or
• Passing details before the customer has made a choice.

The Property Ombudsman has stated that consumers should actively opt in to associated services.

Lesson 6 key point

A recommendation must remain optional. MyEstate must not use control over a property transaction to pressure customers into associated services.