Two agents have complained that they have been kept in the dark about their share certificates for OnTheMarket – and effectively prevented them from cashing in their holdings quickly.
OnTheMarket has totally denied with-holding any information from its members, saying it has consistently given them updates.
Meanwhile, it was announced this morning that the 100-plus branches of major southern chain Arun have now started listing at OnTheMarket.
The agents concerned about their share certificates have businesses in different parts of the country and each approached EYE independently.
Both had wanted to sell their shares as soon as trading started last Friday, as both foresaw major price drops.
However, both say they have since been told they will need their share certificates to sell – and those certificates will take 14 days to come through.
One said he is considering a complaint to the London Stock Exchange.
He told EYE he had never been told how many shares he had, and nor had he been given information about share certificates.
He said he had spoken to the company which took over from Capita last year, Link Market Services, and which is now responsible for that part of the service.
“I asked about my share certificates and how many shares I had, but because I don’t have any share certificates, I was told I could not be authenticated,” the agent told us.
He said that he has now learned what his shareholding is, but that he will need the certificates in order to sell any shares.
That would mean a 14-day delay.
He said that while he was one of the original shareholders, he had refused to sign up to the lock-in clause which allows agents to sell only 10% of their stock.
He said: “That doesn’t apply to me. As far as I am concerned, I could sell the whole lot.”
The other agent did know what his shareholding was, after notification in a letter dated last September 12.
He has under 5,000 shares, paying a monthly subscription rate to OTM of £50, and says the lock-in clause does not apply.
He claimed that at no stage had he been given information about his share certificate.
He said that after trading started last Friday, he rang OnTheMarket but was initially told the department concerned was not available to deal with enquiries.
He says he subsequently did get through and was advised of the 14-day wait.
He said that as soon as trading opened, he could anticipate the share prices going down – as happened.
He said: “By the time the stock market opened and my managing to get through to OnTheMarket, I had lost about £600.”
Both agents say they are very angry.
We put their points to OnTheMarket, where a spokesperson told us: “The company has consistently kept all member agents updated throughout the process leading up to the Admission of OnTheMarket plc to the AIM market of the London Stock Exchange.
“It was explicit within the Members Scheme documentation that all share certificates would be held by OnTheMarket and dispatched within 14 days of a written request from an agent, provided that those shares would not be subject to the terms of an agreed lock-in.
“If any agents have any queries on this matter, they should address them directly with OnTheMarket.”
Yesterday’s the share price actually picked up a little, ending the day at 142.5p, although down from their issue price last Friday of 165p.
It has also been announced that Schroders now hold a 6% stake in the company, holding 3.6m shares out of the 60.5m issued.
Separately, this morning it was announced that Arun’s properties are now on the portal. It means that 100-plus branches are added to OTM’s inventory.
David Lench, Arun Estates Group Managing Director, said: “I believe that both agents and the property-seeking public will benefit from greater competition in the portal space and that a strongly funded agent-backed model is the most effective way to achieve it.
“I am delighted to declare the support of Arun Estates for OnTheMarket and to announce our strategic partnership commitment.”
Ian Springett, chief executive of OnTheMarket, said: “It is a powerful boost to OnTheMarket that Arun Estates is committing to list its properties for five years at OnTheMarket.com
“Arun Estates is undoubtedly one of the leading, most successful agent groups in the regions where it operates and its support will substantially strengthen our position in the market.”
‘Big win’ long-term listing agreements Arun, Chancellors and Hunters were announced before the flotation and were conditional upon admission to AIM. This morning’s announcement about Arun suggests that Chancellors and Hunters’ outlets will also shortly be listing properties on OTM, giving a further major boost to total property inventory.
So Arun just secured a (huge) chunk of shares in return for a spot on OTM?
Seems legit.
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When Ian talked about this at the roadshows he made out like he was in talks with Countrywide and Connels et al. He released on here saying that part of the share holding would be used to attract the largest estate agents . So far he has managed Arun and Hunters ….about two hundred branches . That kind of sums up this whole float.
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That’s seriously your argument Danny? OTM has only gained 200 branches.
I will never get back the 20 seconds it took me to read your comment.
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OnTheMarket founding agency Douglas & Gordon returns to Zoopla,
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Why the negativity? when did Zoopla last add hundreds of branches over night?
Arun have circa 100 Branches, Hunters at last count was something like 200 so that’s 300 over night and they are adding agents fast and are obviously still in conversation with the countrywide’s and Connells of the world.
The whole point of the exercise with OTM was to give an alternative to Rightmove that worked for the fee paying agent rather than the buyer and didn’t just put their fees up by 10% each year because they wanted to keep their share holders happy.
If more agents had the balls to follow the OTM plan and stick it to Rightmove then it would have worked and we would have all saved ourselves some money, but there’s too many short sighted agents out there who are scared of what others are doing instead of being better at what they themselves do!
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It’s cute you think that OTM’s plan was ever to help estate agents. The plan from day 1 was a transfer of cash to Ian’s pocket and it’s worked wonderfully well. My point above is that he told you it’s 100% mutual , 1 agent 1 vote , now it’s not , it’s doesnt allow online listers , now it does , it will float at £5 , it didn’t …. when Ian tells you the largest estate agents in the country will sign up …. they won’t ….
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None of this ever impacted RM one jot, in fact it strengthened their position as it temporarily weakened Zoopla. That is now a distant memory and Zoopla is now a serious portfolio of portals and agent services with both making sizeable profits. By dropping the OOP rule OTM goes against everything it stood for (reducing marketing costs) with many agents now/soon to be advertising on all 3 portals- so we now pay a 3rd company for the same business. Because, remember, portals don’t create leads they simply funnel them- 2 funnels or 3 the end result is the same. Whist OTM is cheap now, if they do achieve traction and survive and grow the investors will want to see returns & profits and will seek the high portal rates charged elsewhere.
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My company has been offered 12 months free membership of OTM.
Why?
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Do you have to sign to commit after that?
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Firstly, I was told that i couldn’t get shares on the £50 deal and had to move up to the rate card if i wanted to be involved and own a part of this amazing company likely to be worth £5 a pop.
Secondly, hahahahahahahahahahahaha.
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It’s become obvious that A LOT of people seem to have been told A LOT of things, wardy…
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An opportunity missed. Such a shame.
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I’m confused by all of this the £50/month agents are effectively being handed back the money they’ve paid and plus some and can simply walk away.
The agents who have signed a 5 year deal can do as they please
The Gold and Silver members who supported and were loyal to the mutual but who objected to the float are the ones being penalised by the balance of the original contract and the balance of the OOPR.
The failure to mention Countrywide, Connells and LSL suggests those negotiations are still in progress.
With the float out of the way, what’s the plan?
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No one is allowed to know The Plan. But you can bet your life it will be a Cunning one.
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For the life of me I can’t work out what it could be; the loyal 27% of agents who supported the original affinity group is now fragmented and quite divided, the corporates haven’t joined, the passive intermediary listers with the exception of Quirky can join once they’ve forgiven the parasite jibes.
£5 is now £1.40 and on top of that is utter confusion over what is going on.
Do I guess the plan is written by B. Aldrick?
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Guess bagging Bricks and inviting the fox into the hen house would be a game changer !
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How come Arun brand Ward and Partners in Kent is still showing on Rightmove, Zoopla and now OTM then? or do the rules not apply to shareholders?
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Because the OOP is no longer – for NEW JOINERS, that is…
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This story echoes quite closely our experience in attempting to obtain clarity in obtaining share certificates. After receiving a call back on Friday the lady at OTM explained the share certificates could be scanned and emailed, however suggested it could still be 14 days before they were received. Maybe OTM are still on ‘dial up internet’……………… Since then I have emailed a further two times and left voice mail messages about the certificates with no response. Quite simply there has been almost zero communication from them, and certainly no information in how to obtain share certificates was provided with the correspondence sent to us in September last year confirming the number of shares we had been allocated. That was buried on page 24 of pre voting prospectus sent in August 2017.
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Same issues I’ve had.
JUST A HEADS UP….
As the shares are in company names, you will need to apply for your LEI code (if you haven’t already) in order to trade the shares. My LEI came through within 24 hours.
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Cheers Mark
We have requested the share certificates in writing but I wasn’t aware of the LEI requirements.
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Letter to “Mable’s Problem Page”….
“Dear Mable,
I hope you can help.
I’ve called it time with my old boyfriend (let’s call him OTM) however he keeps coming round every month and takes almost £300 from me….. for nothing? He doesn’t write or call – Thankfully I suppose! He told me that he will keep visiting every month to collect his £300 and he’ll do that until 2019?! ……and he said I have no choice but to comply.
Anyway, he hangs around with other girls now and takes money from them, much less money! …..however, they can tell him to sod off and he will sod off, unlike me, handcuffed to him until 2019.
I feel that I have been made to look a fool and forced to pay for my foolish mistake!
I see now that I was a fool to believe him (OTM).
What should I do Mable….. please help me get rid of this leech!”
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GPL your luck is in. Its Mable!
Yes you are a fool! You should take the ba****d to court to stop those ridiculous payments. Seriously? Are you locked in until 2019? I hope not!
You know what they say, there are plenty more fish in the sea … go find your new fish – don’t go for a red herring again though!
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When all the web based agents sign up to OTM they will undercut every high street agent even more, how long will the high street agent last paying the high costs to RM and Z, keep feeding the mouths the bite you! it makes my blood boil to read the anti OTM comments. Probably all missed the boat and too embarrassed to admit. I only pay £500 for RM and just had an offer from Z, “FREE” for 6months then £50 thereafter. However I’ve not needed Z for the last 4 and half years so why go back.
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When all the web based agents sign up to OTM they will undercut every high street agent even more, how long will the high street agent last paying the high costs to RM and Z, keep feeding the mouths that bite you! it makes my blood boil to read the anti OTM comments. Probably all missed the boat and too embarrassed to admit. I only pay £500 for RM and just had an offer from Z, “FREE” for 6months then £50 thereafter. However I’ve not needed Z for the last 4 and half years so why go back. It would be interesting to know what others pay forRM & Z. Suckers
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Hi Hitman, how come you only pay £500 to RM? Do you have extra charges/restrictions on top of that? I am not an EA (I just invest in property) but sure I read the minimum fee to RM was £1k a month. How does it work? Do you pay to list on top of that £500? or is that inclusive. It all seems a bit of a shambles. Is Z £50 a month for everything? If so, why were they charging such high fees in the first place? and how come RM is so high? Am I missing something here – it is just an ad on a website. ‘They all sound desperate if you ask me.
RIC, I am with you on this mate. From the outside looking in, you are all in an Emperors new clothes situation’. Don’t any of you realize that it is you EAs driving all these high fees? What is it that makes you afraid not to use them any more? The public don’t care if its RM, Z, OTM or A.N.OTHER they will follow you where your properties are listed
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Mable, I only pay what I have always for the past 4 and 1/2 years, I ditched Z when I signed up to OTM as part of the OOP rule, my business has increased in fact I now get more leads for lettings from OTM. I went with the crowd and dropped Z, had everyone dropped RM I feel it would have had the same outcome. Some agents get a better deal from RM & Z it was evident when a group of AM/OTM members discussed fees at one of the meetings. I honestly can’t understand why so many stick by RM & Z when they don’t treat all the same. They are blood suckers. The AM/OTM concept is a great idea it just takes bottle which many don’t seem to have. The guys that didn’t sign up are either stupid or scared. They probably don’t change their utility providers and continue paying high fuel costs.
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Mate of mine down the boozer knows a guy whose wife’s mum goes dxgging down Shooters Hill although I am not entirely sure she has a dog or if this has anything to do with dogs? Anyway one of her dog walking chums told her to tell you to make sure you pull out quick!
He heard it from a punter who served notice on their relationship and run off into the night thinking that would be the end of it, only by morning they were smashing the doors in and sucking up with a brand new cheap as deal.
They all got mouths to feed and if you deny them the D (thats D for dollar) by walking away they get to chalk it up as another notch / new customer on the bedpost and hit the B spot (thats B for bonus). Everyone has a happy ending. Except the boss who goes home and sleeps next to a soggy tissue. Jesus, from crying you filthy animals!
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