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  • FIRST POST
    • goodwithsaving
    • By goodwithsaving 16th Jun 17, 3:57 PM
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    goodwithsaving
    Signed agent contract, found buyer privately
    • #1
    • 16th Jun 17, 3:57 PM
    Signed agent contract, found buyer privately 16th Jun 17 at 3:57 PM
    Sadly, due to relocation I have to sell my house that I have renovated and didn't buy too long ago. Selling is my only option and I won't rent it out. It's time to move on.

    My questions are: I have signed a contract with an agent, although my house is not yet on the market. I have been approached privately for a sale by a friend of a neighbour. Do I have to tell the agent? Do I then owe the agent anything?

    My house hasn't been advertised etc. The marketing material has been produced but not advertised as I haven't yet made a firm decision on selling.

    Thank you in advance for all help
    Every time you borrow money, you’re robbing your future self. –Nathan W. Morris
Page 1
    • Browntoa
    • By Browntoa 16th Jun 17, 3:59 PM
    • 31,630 Posts
    • 37,316 Thanks
    Browntoa
    • #2
    • 16th Jun 17, 3:59 PM
    • #2
    • 16th Jun 17, 3:59 PM
    Afraid you have a contract , possibly get out clause if buyer NOT registered with agent
    I'm the Board Guide of the Referrers ,Telephones, Pensions , Shop Don't drop ,over 50's and Discount Code boards which means I'm a volunteer to help them run smoothly and I can move and merge posts there. However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to forumteam@moneysavingexpert.com Any views are mine and not the official line of MoneySavingExpert.
    • Surrey_EA
    • By Surrey_EA 16th Jun 17, 4:12 PM
    • 1,060 Posts
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    Surrey_EA
    • #3
    • 16th Jun 17, 4:12 PM
    • #3
    • 16th Jun 17, 4:12 PM
    I'd simply ring the EA up and tell them you've found a buyer privately and no longer with them to go ahead with marketing your property.

    Presumably no viewings have taken place organised by the EA?
    • eddddy
    • By eddddy 16th Jun 17, 4:14 PM
    • 5,125 Posts
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    eddddy
    • #4
    • 16th Jun 17, 4:14 PM
    • #4
    • 16th Jun 17, 4:14 PM
    You have to read the contract that you agreed to, but in general,

    If it's a sole agency agreement...

    ...you only have to pay the EA if a buyer is introduced by that EA or another EA. You don't have to pay the EA if you found the buyer privately (i.e. the friend of a neighbour).

    But if it's a sole selling rights agreement...

    ... you have to pay the EA however the buyer was found (even if the buyer is a friend of the neighbour).

    Extra considerations...
    - If you have a sole agency agreement, make sure that this prospective buyer does not contact the EA.

    - If you signed the contract away from the EA's office, you should have a 14 day cooling off period in which to cancel the contract. (But that's likely to be messy, and you'd probably have to pay them for work they've already done.)

    - Even if it's a sole agency agreement, some EAs charge withdrawal fees, which you may still have to pay.
    So the starting point is to read your contract in detail.
    Last edited by eddddy; 16-06-2017 at 4:23 PM.
    • illusionek
    • By illusionek 16th Jun 17, 4:48 PM
    • 111 Posts
    • 22 Thanks
    illusionek
    • #5
    • 16th Jun 17, 4:48 PM
    • #5
    • 16th Jun 17, 4:48 PM
    Do you have any cooling off period?
    • goodwithsaving
    • By goodwithsaving 16th Jun 17, 4:51 PM
    • 619 Posts
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    goodwithsaving
    • #6
    • 16th Jun 17, 4:51 PM
    • #6
    • 16th Jun 17, 4:51 PM
    Thank you. That's really helpful.

    My contract says this:

    'For the avoidance of doubt it is stated herein that the client will be liable to pay the appropriate fee plus VAT thereon to [agent], together with any other costs or charges agreed. If at any time there is an unconditional exchange of cotnracts in relation to the property with either a purchase introduced by [agent] during the period of the sole agency or a purchaser introduced by another estate agent during that period.'
    Every time you borrow money, you’re robbing your future self. –Nathan W. Morris
    • goodwithsaving
    • By goodwithsaving 16th Jun 17, 4:52 PM
    • 619 Posts
    • 936 Thanks
    goodwithsaving
    • #7
    • 16th Jun 17, 4:52 PM
    • #7
    • 16th Jun 17, 4:52 PM
    I signed it about 8 weeks ago as I wanted to be ready in the event something came to the market that I wanted to buy. I haven't yet put mine on the market however.
    Every time you borrow money, you’re robbing your future self. –Nathan W. Morris
    • eddddy
    • By eddddy 16th Jun 17, 4:58 PM
    • 5,125 Posts
    • 4,778 Thanks
    eddddy
    • #8
    • 16th Jun 17, 4:58 PM
    • #8
    • 16th Jun 17, 4:58 PM
    My contract says this:

    'For the avoidance of doubt it is stated herein that the client will be liable to pay the appropriate fee plus VAT thereon to [agent], together with any other costs or charges agreed. If at any time there is an unconditional exchange of cotnracts in relation to the property with either a purchase introduced by [agent] during the period of the sole agency or a purchaser introduced by another estate agent during that period.'
    Originally posted by goodwithsaving
    So that seems to be a typical sole agency agreement, as I described above.

    So no fee is payable if you find a buyer privately (but check for withdrawal fees etc).

    You could even let the contract with the EA continue, whilst you negotiate with your privately found prospective buyer - in case they never actually make an acceptable offer.

    But maybe mention to the EA that you're in discussion with a 'friend of a friend', to avoid 'misunderstandings' later.
    • goodwithsaving
    • By goodwithsaving 16th Jun 17, 5:04 PM
    • 619 Posts
    • 936 Thanks
    goodwithsaving
    • #9
    • 16th Jun 17, 5:04 PM
    • #9
    • 16th Jun 17, 5:04 PM
    Thank you. Really helpful and greatly appreciated!

    MSE works wonders yet again.
    Every time you borrow money, you’re robbing your future self. –Nathan W. Morris
    • KiKi
    • By KiKi 16th Jun 17, 6:46 PM
    • 4,913 Posts
    • 7,976 Thanks
    KiKi
    I wouldn't even tell the EA you've found someone. Simply say you've decided not to put it on the market with them.
    ' <-- See that? It's called an apostrophe. It does not mean "hey, look out, here comes an S".
    • pollyannaL
    • By pollyannaL 16th Jun 17, 10:51 PM
    • 116 Posts
    • 69 Thanks
    pollyannaL
    Hello,

    Apologise I am not directly answering your question, but just wanted to gain some info on a 'private sale' & the decision making behind it.

    I am a FTB looking for a house, and i have missed out on viewings as the vendor has agreed to sell to a private buyer. Obviously as it keeps happening, I am wondering why vendors wouldn't proceed with viewings via EA to see if someone*me* would offer more than the private buyer's offer? I would have offered well over asking price for some of the properties, but I never even get a look in!

    Are you not tempted to see what higher offers you can get, rather than just this private offer?

    (like I said, just wanted to know the perspective of a vendor as I keep losing out!)
    Thanks
    • eddddy
    • By eddddy 17th Jun 17, 12:07 AM
    • 5,125 Posts
    • 4,778 Thanks
    eddddy
    Hello,

    Apologise I am not directly answering your question, but just wanted to gain some info on a 'private sale' & the decision making behind it.

    I am a FTB looking for a house, and i have missed out on viewings as the vendor has agreed to sell to a private buyer. Obviously as it keeps happening, I am wondering why vendors wouldn't proceed with viewings via EA to see if someone*me* would offer more than the private buyer's offer? I would have offered well over asking price for some of the properties, but I never even get a look in!

    Are you not tempted to see what higher offers you can get, rather than just this private offer?

    (like I said, just wanted to know the perspective of a vendor as I keep losing out!)
    Thanks
    Originally posted by pollyannaL
    Sounds a bit strange.

    So you're saying that prospective buyers are somehow managing to find sellers, view their properties, make offers and get the offers accepted - before the seller's EA can even arrange viewings.

    How are the buyers finding the sellers? Are they seeing the properties on Rightmove and speculatively knocking on the sellers' doors?


    I guess it's possible, but it seems unlikely. Could there be a misunderstanding - or some fibbing - going on?
    • goodwithsaving
    • By goodwithsaving 17th Jun 17, 12:51 AM
    • 619 Posts
    • 936 Thanks
    goodwithsaving
    pollyannaL, not really no. Sometimes, and certainly for me currently, the highest offer isn't always the best option. If I have a buyer who is pushy, awkward and inflexible offering say, 240k vs a buyer who is understanding and flexible offering a bit less, I'd go with the latter. I hate vendors who are driven by squeezing every penny out of a sale and don't intend to become one. Moving house is stressful enough already, picking the right buyer and vendor helps sanity levels throughout.
    Every time you borrow money, you’re robbing your future self. –Nathan W. Morris
    • da_rule
    • By da_rule 17th Jun 17, 9:14 AM
    • 2,490 Posts
    • 2,225 Thanks
    da_rule
    If I've read their terms correctly, the fee only becomes payable on exchange of contracts, no mention of completion. Therefore does anyone else think that it could possibly be argued that if you do not exchange contracts on the sale, regardless of who introduced you, but proceed directly to completion then the fee doesn't become payable?
    • goodwithsaving
    • By goodwithsaving 17th Jun 17, 9:41 AM
    • 619 Posts
    • 936 Thanks
    goodwithsaving
    If I've read their terms correctly, the fee only becomes payable on exchange of contracts, no mention of completion. Therefore does anyone else think that it could possibly be argued that if you do not exchange contracts on the sale, regardless of who introduced you, but proceed directly to completion then the fee doesn't become payable?
    Originally posted by da_rule
    Err, you always exchange. Even if you complete on the same day. If you don't exchange contracts and sign, how would the legalities be done?
    Every time you borrow money, you’re robbing your future self. –Nathan W. Morris
    • da_rule
    • By da_rule 17th Jun 17, 10:06 AM
    • 2,490 Posts
    • 2,225 Thanks
    da_rule
    Err, you always exchange. Even if you complete on the same day. If you don't exchange contracts and sign, how would the legalities be done?
    Originally posted by goodwithsaving
    You do not. I've had 3 purchases in the last month or so where there was no chain, cash buyers (so no mortgage) and we proceeded straight to completion. Didn't sign contracts, just signed and exchanged the transfer deed on the agreed completion date.

    We did all of our searches (including the Land Registry search with priority) prior to completion, raised any requisitions, then completed.
    • glentoran99
    • By glentoran99 17th Jun 17, 10:54 AM
    • 4,588 Posts
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    glentoran99
    You do not. I've had 3 purchases in the last month or so where there was no chain, cash buyers (so no mortgage) and we proceeded straight to completion. Didn't sign contracts, just signed and exchanged the transfer deed on the agreed completion date.

    We did all of our searches (including the Land Registry search with priority) prior to completion, raised any requisitions, then completed.
    Originally posted by da_rule
    so you exchanged?
    • eddddy
    • By eddddy 17th Jun 17, 11:43 AM
    • 5,125 Posts
    • 4,778 Thanks
    eddddy
    so you exchanged?
    Originally posted by glentoran99
    To be pedantic, I think what da_rule means is that he/she bought a property without any contract with the seller.

    Instead, they went "straight to transfer" - i.e. both parties just sighned a TP1 deed of transfer.

    Since there was no contract - there was no 'Exchange of Contracts'.

    But I guess you could say that there was an Exchange of Deeds (but it's not usually described in that way) it's often described just as executing a transfer.
    • glentoran99
    • By glentoran99 17th Jun 17, 1:05 PM
    • 4,588 Posts
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    glentoran99
    To be pedantic, I think what da_rule means is that he/she bought a property without any contract with the seller.

    Instead, they went "straight to transfer" - i.e. both parties just sighned a TP1 deed of transfer.

    Since there was no contract - there was no 'Exchange of Contracts'.

    But I guess you could say that there was an Exchange of Deeds (but it's not usually described in that way) it's often described just as executing a transfer.
    Originally posted by eddddy


    So thousands of pounds was handed over without a contract? Trusting buyer...


    Or was the property signed over before cleared funds
    • eddddy
    • By eddddy 17th Jun 17, 5:43 PM
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    • 4,778 Thanks
    eddddy
    So thousands of pounds was handed over without a contract? Trusting buyer...


    Or was the property signed over before cleared funds
    Originally posted by glentoran99
    The solicitors deal with the funds transfer.

    I guess they use the same protocol as with any property transfer - whether or not there is a contract.

    The funds transfer and property transfer are linked - one cannot happen without the other (irrelevant of whether there is a contract or not).
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