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'Ready, willing and able buyer' clause

We have our agents' contract to sell our flat and there's one clause we're not comfortable with.

It reads:
Ready willing and able: A buyer is ready, willing and able if they are prepared and are able to exchange unconditional contracts for the purchase of your property. If such as buyer is introduced by us in accordance with your instructions our fee will become due even if you subsequently withdraw from the sale and unconditional contracts for sale are not exchanged, irrespective of your reasons
So, hang on? Does that mean that if no other offers are forthcoming we have to sell to say, a cash buyer asking a really low price or pay the the agents? Or that we can't withdraw if such a buyer turns up, then demands 20% off just before exchange? Is this some way of trying to advantage their mates?

I don't really understand what this kind of buyer means? Are they likely to exist even?

My husband is going to try to clarify with the agents, but I'd be interested in the views of some more impartial people!

Comments

  • Gonzo1987
    Gonzo1987 Posts: 1,208 Forumite
    If you accept an offer that is suitable for you (you don't have to accept any offer if it's not right for you) and the buyer is in a position to unconditionally exchange contracts and YOU decide to pull out the sale the commission would still be liable. Demanding 20% isn't unconditionally willing to exchange from my understanding.
  • When I sold in 2011, before I signed the contract with the EA I crossed that section (identical AFAIR) out and wrote "On completion" instead. EA still went along with it.
  • eddddy
    eddddy Posts: 16,289
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    Hi cloo

    As you're suggesting, this is a very dubious clause - which could end up causing lots of arguments.

    In my part of the country, a few 'shyster' EAs put this in their contracts in the hope of catching out people who don't read the contract before signing it (in my opinion!).

    When challenged, the EA has always removed the clause.

    If they wont remove it, I'd suggest finding another EA that is genuinely 'no sale, no fee'.
  • cloo
    cloo Posts: 1,291
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    Thanks guys... I was imagining they probably would remove/alter if asked, so will see if we can do that.

    Also just wondering what 'exchange unconditional contracts' means here? Does it just mean 'in a position to exchange' or something else?
  • PasturesNew
    PasturesNew Posts: 70,698
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    It simply means: if we find you a buyer - and you accept their offer - then, when the sale is progressing you simply change your mind and stop the sale, then the fees are still payable.

    Just that - if you pull out of a sale that's agreed and progressing..... if you pull out and remove the property from their books, so they can't continue to try to market/sell it/get their commission.

    If, say, you had a buyer and you fell out with them over something and refused to sell it to them, but kept it on the agent's books, that'd be OK.
  • cloo
    cloo Posts: 1,291
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    OK, I'll see if that's a point we can clarify, though I'd have thought it'd say something about 'and if you choose to stop marketing your property with us' as well if that were the case.

    Obviously it's not on for us to just change our mind and we can avoid that, but what if *our* vendor pulls out and we have nowhere to move to (two young kids, moving into rented accommodation not an easy option), for example? I can think of all sorts of reasons beyond our control we might not be able to exchange. :/
  • eddddy
    eddddy Posts: 16,289
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    cloo wrote: »
    ....
    Also just wondering what 'exchange unconditional contracts' means here? Does it just mean 'in a position to exchange' or something else?

    I'm not sure what level of answer you're looking for, so...

    'Exchange Unconditional Contracts' is a more legally correct way of saying 'Exchange Contracts' - it's the same thing.

    In more general terms, it's the 'point of no return'. Once you've Exchanged contracts, you are committed to sell/buy (or face big financial penalties).

    It's usual for a "no sale, no fee" EA's fees to become payable on Exchange of Contracts, and due for payment on Completion.
    cloo wrote: »
    ...I'd have thought it'd say something about 'and if you choose to stop marketing your property with us' as well if that were the case.

    That's usually called a 'Withdrawal Fee' - and definitely challenge that, if it's in the contract. (One or two of the big chains tried putting that in their contracts a while back - but I think they've given up now.)


    And don't forget to negotiate down the fee and the minimum contract period!
  • basically if they find u a buyer and you accept the offer - if u decide not to sell and take house off market you owe the EA their money. now if you decided to not sell but had an offer you could simply drag your feet to a point in time the buyer got fed up and withdrew his offer and therefore it wasnt you not selling, its harsh but a legit way out if it happens
  • cloo
    cloo Posts: 1,291
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    As I said, fair enough if we mess them around like that, but we can't control if someone else messes us around.

    It's frustrating, as the plan is to get on the market with an open day Saturday week (and after that we can't show it on the next weekend) and I want to sort this by end of day tomorrow so agent can on with it.

    Husband spoke to agents yesterday, though not the guy we've been dealing with, and they were all 'it's quite standard' and didn't sound like they'd take it off or alter it, but I'm wondering if the guy we've been dealing with might be more helpful if I try him today.
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