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    • Seller175
    • By Seller175 15th Oct 16, 10:18 PM
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    Seller175
    Private buyer but have sole seller agreement with estate agent
    • #1
    • 15th Oct 16, 10:18 PM
    Private buyer but have sole seller agreement with estate agent 15th Oct 16 at 10:18 PM
    I've got myself in a pickle. I put my house on sale on a sole agreement with an estate agent 3 months ago. I then decided to list with a second agent a month later but unknowingly signed another sole seller agreement with them and am effectively tied in for 20 weeks. I have now found a true private buyer who has been introduced by my neighbour. I don't mind referring him to the first agent so everything is done via EA especially given that they only charge 1%. However would I then become liable for double fees with the 2nd agent having me on a sole agreement? I don't want to refer them to the 2nd agent as they charge higher fees and they haven't really introduced me to this buyer either. Or do I just take it off market and say that I have decided to take off market? I don't believe the buyer has contacted any of the EAs.
    Last edited by Seller175; 15-10-2016 at 10:30 PM.
Page 1
    • anselld
    • By anselld 15th Oct 16, 10:30 PM
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    anselld
    • #2
    • 15th Oct 16, 10:30 PM
    • #2
    • 15th Oct 16, 10:30 PM
    Words fail me....You need to read both agency agreements carefully because as it stands any buyer introduced by anyone (or no-one) is going to get you into trouble!
    Perhaps cancel everything, hide for six months and start again. Or be thankful for a sale and take double fees on the chin.
    • Seller175
    • By Seller175 15th Oct 16, 10:36 PM
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    Seller175
    • #3
    • 15th Oct 16, 10:36 PM
    • #3
    • 15th Oct 16, 10:36 PM
    Wow really??? The most annoying thing is neither of these eas told me I was signing a sole agreement! I was thinking of ringing the first agent to first ask where I stand in a hyotethical scenario of selling via either. I am hoping that because I signed with them first their agreement would stand. Or is it better I just cancel my contracts with both and just sell private?!?!
    • G_M
    • By G_M 15th Oct 16, 10:36 PM
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    G_M
    • #4
    • 15th Oct 16, 10:36 PM
    • #4
    • 15th Oct 16, 10:36 PM
    From what you say, EA2 will be due his fee.

    But as we can't read the contract we can't be sure.

    Either be grateful you have a buyer, sell, and pay he fees, or don't sell and don't pay the fees.

    ps - EAs routinely monitor sales (and buyer's names) of properties and ex-properties on their books via the Land Registry.
    • G_M
    • By G_M 15th Oct 16, 10:38 PM
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    G_M
    • #5
    • 15th Oct 16, 10:38 PM
    • #5
    • 15th Oct 16, 10:38 PM
    Wow really??? The most annoying thing is neither of these eas told me I was signing a sole agreement!
    Originally posted by Seller175
    Oh come on! The onus is on you to read a contract before you sign it. Do you really expect agents (and shops? airlines? employers?) to sit down and tell you every single clause in a contract before you sign it?

    Just realised you seem to be saying you never cancelled the contract with EA1 - so he'll be claiming his fee too!
    • Seller175
    • By Seller175 15th Oct 16, 10:43 PM
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    Seller175
    • #6
    • 15th Oct 16, 10:43 PM
    • #6
    • 15th Oct 16, 10:43 PM
    Yes they monitor sales but this buyer will not be listed as their customer. I have never sold a property before and the 2nd agent never even asked whether the original agent was on a sole agreement. He just said that's fine, leave them on.
    • Seller175
    • By Seller175 15th Oct 16, 10:47 PM
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    Seller175
    • #7
    • 15th Oct 16, 10:47 PM
    • #7
    • 15th Oct 16, 10:47 PM
    But something as important as that they should be advising you. EAs.....scum of the earth.
    • Seller175
    • By Seller175 15th Oct 16, 10:51 PM
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    Seller175
    • #8
    • 15th Oct 16, 10:51 PM
    • #8
    • 15th Oct 16, 10:51 PM
    By the way, EA1 agreement was for 16 weeks which has since passed. Not sure what happens after that....
    • slowpoke rodriguez
    • By slowpoke rodriguez 15th Oct 16, 11:08 PM
    • 270 Posts
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    slowpoke rodriguez
    • #9
    • 15th Oct 16, 11:08 PM
    • #9
    • 15th Oct 16, 11:08 PM
    But something as important as that they should be advising you. EAs.....scum of the earth.
    Originally posted by Seller175
    Something as important as this you really should keep you wits about you...

    Give the first agent notice, and the second if you're beyond the initial term (or whatvever is stated in the contract.)
    Ask for a list of potential buyers they have introduced (whatever that means) . If your private buyer isn't on the lists, sell to them fee free.
    If they are, you may be liable for fees for the next year or so...
    • Seller175
    • By Seller175 15th Oct 16, 11:21 PM
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    Seller175
    The first agent period has lapsed...so I could serve their 14 day notice.
    I am still tied in to the 2nd agent for a few weeks. So best thing to do here to clear up this mess is introduce the buyer to the second agent, advise them of the situation and then cancel the 1st EA. I suppose the 2nd agent would need to hold off stating SOLD for 14 days just to cover me...
    • Levs01
    • By Levs01 15th Oct 16, 11:37 PM
    • 224 Posts
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    Levs01
    Yes they monitor sales but this buyer will not be listed as their customer. I have never sold a property before and the 2nd agent never even asked whether the original agent was on a sole agreement. He just said that's fine, leave them on.
    Originally posted by Seller175

    If I'm reading that right, the second agent knew you were still with the first agent and said 'that's fine, just leave them on'? So then the second agent knew he would be a multi agent and then got you to sign a sole agent contract? That's....very bizarre. Agencies make more money on a multi agent contract. I had to go multi agent straight away (long story) but both agencies went through the contract and the fact it was a multi agent contract and what the fees were for that and what would happen if another agent sold it first etc.
    • ThePants999
    • By ThePants999 15th Oct 16, 11:46 PM
    • 320 Posts
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    ThePants999
    Oh lawdy.

    The agency agreement I signed last time I sold was a simple one-page contract. It made abundantly clear the situations in which I would be liable for their fee, how to terminate the agreement, etc. I strongly suggest that you READ YOURS and understand the situation you're in!

    There's a difference between a "sole agency" agreement vs a "sole seller" agreement. If you truly do have a sole seller agreement with either or both agents, you'll owe one or both of them their fee if you sell to this buyer, regardless of who you tell what. If you have a sole agency agreement, that should hopefully not be a problem. A typical sole agency agreement would make you liable if you sold to a purchaser introduced by any agent while the agreement was in force - a truly private buyer shouldn't leave you liable for EA commission with a sole agency agreement.
    • eddddy
    • By eddddy 15th Oct 16, 11:50 PM
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    eddddy
    The first agent period has lapsed...so I could serve their 14 day notice.
    I am still tied in to the 2nd agent for a few weeks. So best thing to do here to clear up this mess is introduce the buyer to the second agent, advise them of the situation and then cancel the 1st EA. I suppose the 2nd agent would need to hold off stating SOLD for 14 days just to cover me...
    Originally posted by Seller175
    Are your contracts both "Sole Selling Rights" or both "Sole Agency"?

    It sounds like you might be planning not to be honest with EA1. You might be treading a fine line.

    If you say something to EA1 which is untrue in order to avoid paying their fee - you're committing Fraud by False Representation (which is a criminal offence).

    If you ask EA2 and/or your buyer to participate in the deception - that's Conspiracy to Commit Fraud by False Representation.

    So think carefully about how you want to proceed.
    • Seller175
    • By Seller175 16th Oct 16, 12:14 AM
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    Seller175
    EA1 - sole agency agreement
    EA2 - sole selling rights agreement
    • Seller175
    • By Seller175 16th Oct 16, 12:16 AM
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    Seller175
    So I'm assuming me going through ea2 would mean only one fee is payable as ea1 is a sole agency agreement and not sole selling rights?
    • Seller175
    • By Seller175 16th Oct 16, 12:44 AM
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    Seller175
    Or are u effectively saying that if I went through the private route only then is EA1 not able to claim fees. Albeit I'd get shafted by the ea2 in this scenario regardless. I think I will approach EA2 and talk to them.....
    • G_M
    • By G_M 16th Oct 16, 1:33 AM
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    G_M
    So I'm assuming me going through ea2 would mean only one fee is payable as ea1 is a sole agency agreement and not sole selling rights?
    Originally posted by Seller175
    As I understand it, you have not yet terminated EA1's sole agency contract.

    So if you 'go through EA2, EA1 will be due his fee (since you'd be selling through an agent).
    By the way, EA1 agreement was for 16 weeks which has since passed. Not sure what happens after that....
    Again, we can't read you contract, but in most cases, the 16 weeks would be a minimum period. After that, the contract continues until one side or the other ends it.
    • Seller175
    • By Seller175 16th Oct 16, 2:07 AM
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    Seller175
    So really I need to end it with EA1 and then instruct EA2 to handle it with the buyer. It's the only way unless I want to pay two sets of fees!!
    • Seller175
    • By Seller175 16th Oct 16, 2:21 AM
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    Seller175
    One other point....once I realised this issue of these two contracts, I emailed ea2 about 2 weeks ago and enquired re unknowingly having signed their sole seller agreement; "hypothetically speaking if I was to sell via ea1 would I still be liable for fee to you?" The agent replied simply "you would not be liable for two fees"

    At this point ea2 still hasn't asked about what type of contact I had signed with ea1
    Last edited by Seller175; 16-10-2016 at 2:35 AM.
    • eddddy
    • By eddddy 16th Oct 16, 10:34 AM
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    eddddy
    One other point....once I realised this issue of these two contracts, I emailed ea2 about 2 weeks ago and enquired re unknowingly having signed their sole seller agreement; "hypothetically speaking if I was to sell via ea1 would I still be liable for fee to you?" The agent replied simply "you would not be liable for two fees"

    At this point ea2 still hasn't asked about what type of contact I had signed with ea1
    Originally posted by Seller175
    Assuming both EAs' contracts adhere to TPOS code of conduct:

    I don't know exactly what question you asked EA2, but...

    If EA1 introduces somebody today who eventually buys your property - you will be liable for 2 fees (for EA1 and EA2)

    Similarly, If EA2 introduces somebody today who eventually buys your property - you will be liable for 2 fees (for EA1 and EA2)

    I would be amazed if either EA waived their right to a fee.

    EA1 - sole agency agreement
    EA2 - sole selling rights agreement
    Originally posted by Seller175
    I'd suggest you give the 14 days written notice to EA1.

    Tell your buyer not to contact either EA1 or EA2 during those 14 days - to avoid any suggestion that the an EA is introducing your buyer (and hence double fees are payable).

    After the 14 days is up, your buyer can either contact EA2 or negotiate privately with you. Either way, you will have to pay a fee to EA2.
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