Private buyer but have sole seller agreement with estate agent

Seller175 · 19 October 2016 at 11:13PM

Thanks to all the sensible replies.

I've spoken to the agent and he has categorically told me I am only liable for one fee....for the agent that gets me the buyer. He said these contracts aren't worth the paper they're written on. He has been in the game for 20 years and never has he ever had a dispute with any other agent where two sole agency agreements are in place.

So I'm relaxed about it.

slowpoke_rodriguez · 19 October 2016 at 11:31PM

Seller175 wrote: »

Thanks to all the sensible replies.

I've spoken to the agent and he has categorically told me I am only liable for one fee....for the agent that gets me the buyer. He said these contracts aren't worth the paper they're written on. He has been in the game for 20 years and never has he ever had a dispute with any other agent where two sole agency agreements are in place.

So I'm relaxed about it.

So he told you you're only liable for the other agent's fee?

[Deleted User] · 20 October 2016 at 11:18AM

Cancel both EAs and pay their cancellation fee if still under contract (a local agent near me charges £200 if you ditch them). Then sell directly to your buyer if they weren't introduced by an EA.

And if agents really monitor sales, 6 months down the line when Land Registry is updated with the sale info, who they going to send demands to when they don't have your new address!

Seller175 · 20 October 2016 at 7:39PM

slowpoke_rodriguez wrote: »

So he told you you're only liable for the other agent's fee?

You are only liable for the fee for the EA that gets you the buyer. He also said that in the unlikely event that the other agent billed me for another fee then he would take care of it in terms of sorting the situation out. I also have an email from EA2 stating that "you are only liable for one fee in the event of sale" - so I have confirmation of this from both EAs. The only time u could ever get an issue is if One agent sold it and it was the Client of the other.

Seller175 · 20 October 2016 at 7:42PM

EA1 also said the fact that they had contract with me before EA2, that essentially overrides everything. He said technically speaking EA2 should have asked what type of contract I had signed with EA1 before proceeding which they didn't.
So right now I'm keeping both on. If I get the private buyer to go ahead then I will just refer him to EA1 who carries the lower feee and just to avoid hassle.

saajan_12 · 21 October 2016 at 10:02AM

Seller175 wrote: »

You are only liable for the fee for the EA that gets you the buyer. If that was the case why would they bother with 'sole agency' or 'sole selling rights' contracts? What's their recourse if you do give other selling rights? He also said that in the unlikely event that the other agent billed me for another fee then he would take care of it in terms of sorting the situation out. What does that mean? If the other EA pointed to their contract and demanded their fee, what how would this EA 'sort the situation out'? Waive his fee entirely? Seems mighty nice, would he like to put that in writing? I also have an email from EA2 stating that "you are only liable for one fee in the event of sale"EA2 isn't privy to your contract with EA1 so they don't know when EA1's fee is payable so they can't possibly guarantee this. - so I have confirmation of this from both EAs. The only time u could ever get an issue is if One agent sold it and it was the Client of the other.So basically the situation you're in now.. you're a client of both, so if you sell it through one of them, you're a client of the other so there'll be an 'issue' then?

If you're happy with this why did you bother posting instead of just asking the EAs?

If it came to it, do you think their explicit contracts or these ambiguous statements saying 'it will all be fine' will hold more water?

eddddy · 21 October 2016 at 10:15AM

It's very clear that you are asking the EA vague hypothetical questions, and they are giving you vague hypothetical answers.

You need to ask the EA very precise questions.

Seller175 wrote: »

If I get the private buyer to go ahead then I will just refer him to EA1 who carries the lower feee and just to avoid hassle.

So say to EA2

"- I have a sole selling agreement with you
- I have found a private buyer
- I will ask them to negotiate via EA1
- I will pay EA1 a fee, but I don't intend to pay you a fee"

...and see what their answer is.

steampowered · 21 October 2016 at 11:01AM

I am sorry but your understanding of estate agent contracts is not correct. You are taking a very real risk of being sued for two sets of estate agent fees.

Most sole agency contracts are extremely clear that you will be liable for sales made during the term of the contract or a period thereafter, whether or not that results in you paying two sets of fees.

There are debt collection companies who specialise in collecting estate agent fees in circumstances where people sell a house under a private sale while under a sole agency contract, such as http://www.sinclairdebtmanagement.co.uk/estate-fee-finder.html.

There have been many examples of some estate agents taking people to court to claim commission for properties they advertised but didn't actually sell.

I direct you towards http://www.consumeractiongroup.co.uk/forum/showthread.php?465757-Possible-Estate-Agent-Issue-Bairstow-Eves. If you read the thread and the pictures of the debt collection letter that individual receives they are self-explanatory and a similar situation to the situation you are in.

You should strongly consider getting a full copy of the T&Cs from each agent, reading them all the way through and terminating your contract with one of them, if that is what you need to do to avoid being liable for two sets of fees.

steampowered · 21 October 2016 at 11:04AM

Seller175 wrote: »

EA1 also said the fact that they had contract with me before EA2, that essentially overrides everything. He said technically speaking EA2 should have asked what type of contract I had signed with EA1 before proceeding which they didn't.

No, EA2 is not required to start asking you about the contract you have with EA1.

You are legally able to enter into whatever contracts you like. If you have entered into two contracts which both require you to pay a set of fees if a property is sold during the term of those contracts, you can do that.

So right now I'm keeping both on. If I get the private buyer to go ahead then I will just refer him to EA1 who carries the lower feee and just to avoid hassle.

If you signed a sole agency contract with EA2, EA2 will be entitled to receive a fee if the property is sold during the term of that contract. Regardless of who sold the property or whether they had anything to do with the sale - that is what sole agency means.

If you don't terminate EA2's contract, EA2 could check the land registry in a couple months to see that you sold the property, and start using debt collectors to chase you for his fee.

Seller175 · 21 October 2016 at 9:09PM

There seems to be a lot of resistance and opposition on here to what I have said/been told. The bottom line is that these two agencies are next door to each other, they have a good relationship. The director ha old me not to worry about the small print as he has had many scenarios like this but has never known a situation where the client is billed twice. This guy is a Director of the firm, they are a well known local firm. I have asked them both direct hypothetical questions and they have both said that I would not be eligible for 2 fees. I for one am comfortable with the position and I will advise you if anything to the contrary was to happen. FYI EA2 knew all along what contract I am on with EA1 but still put in writing that I would not be liable for 2 sets of fees if EA1 was to sell it.

I realise what the contract says and I am not disputing your legal arguments put forward but I am willing to take my chances as in the real world the likelihood of the worse case scenario of being billed twice is remote imo. When EA2 contract period ends I will just cancel with them. Simple and happy days.

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Private buyer but have sole seller agreement with estate agent

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