Should I Pay Estate Agent Fees??

onedaymyfriend

Hi guys,

An Estate Agent was selling my property for me, contracts were exchanged with a wait of 3 months for a completion. Soon after exchange, the Estate Agent (who was a Soletrader), was in financial difficulties. They therefore sold the remaining ongoing files (mine included) to one of his employees by Deed of Assignment, this was to make sure that all ongoing property files were looked after to a their completion date. I was notified as soon as the deed was signed over.

As the new company have seen my house sale through to completion, they have sent me an invoice for the sale. Am I in my rights not to pay the new company? Even though they saw the sale through to completion without any problems for myself. In fact do I have to pay anyone?

Thanks,

D#

Doozergirl

Yes you need to pay someone.

Someone marketed the property, you signed the contract and they deserve the fee. If they sold their interest in your fee on to someone else then you should pay that new person.

Even if they can't legally claim it, the original EA had a contract with you and is certainly entitled. I'd just cut the rubbish and pay the person who saved your original EA's backside financially.

onedaymyfriend

I was given this info to quote to the new Estate Agent:-

Assignment of Contract

Unless a contract provides otherwise, the liabilities and duties under a contract may not be assigned, in contrast to the benefits under a contract which may be assigned without the consent of the other contracting party.
For instance, suppose A engages B to perform a service in consideration of the sum of £10.00. The 'liabilities and duties' of A are to pay £10.00, and A's 'benefits' under the contract is to receive the service. From B's perspective, the 'liabilities and duties' of the contract are to perform the service, and the benefit of the contract is to receive the £10.00. A is not entitled to assign the obligation to pay B the £10.00, unless B consents. Likewise, B is not entitled to assign the obligation to perform the service to a third party unless A consents.
Although most professionally drafted contracts expressly prohibit such assignments, the provisions to prohibit an assignment of a contract are redundant.
In order to assign the burden of performance under a contract to a third party, the contract must be novated. Novation takes place when all three parties - that is, the current contracting parties and the incoming party who will take on the performance obligations - enter into a contract effectively stating that the outgoing party with a duty of performance will no longer be obliged to perform and the incoming party will take on those performance obligations.

Usage: A party to the contract purported to assign their obligations without the consent of the other party.

Any info much appreciated,

D#

onedaymyfriend

Doozergirl wrote: »

Yes you need to pay someone.

Someone marketed the property, you signed the contract and they deserve the fee. If they sold their interest in your fee on to someone else then you should pay that new person.

Even if they can't legally claim it, the original EA had a contract with you and is certainly entitled. I'd just cut the rubbish and pay the person who saved your original EA's backside financially.

The original EA is now Bankrupt and therefore cannot lawfully receive the fee.

D#

Doozergirl

What I was saying is that if the assignment doesn't form a legally binding contract between you and a new agent, the original contract between you and the first agent must still stand if they introduced your subsequent buyer.

Someone is owed money. It morally belongs to the new agent if nothing else.

It's a bit wrong, isn't it, to try and take advantage of the fact that someone who did the job they were asked to do, got into financial difficulties?

Wouldn't the money due to the bankcrupt party would be now due to their creditors?

Withold the money and see what happens I wouldn't feel comfortable with it though.

jonesMUFCforever

If you withhold the money they will sue you and they will win.
Not only will you have to pay the original fee plus interest expect to pick up their costs as well probably running into many thousands.

Your call.

Incisor

onedaymyfriend wrote: »

... As the new company have seen my house sale through to completion, they have sent me an invoice for the sale. Am I in my rights not to pay the new company? Even though they saw the sale through to completion without any problems for myself. In fact do I have to pay anyone?

Just saw your tagline: "But if you reject his love, given at a great sacrifice at calvary, it would be better for you not to have been born". You would know what I mean if I said that someone saved you from getting stuck in a hole and you probably feel that you owe everything to that person, even though no demand is being placed on you. Do you really need to ask what is the right thing to do?

chickmug

onedaymyfriend wrote: »

The original EA is now Bankrupt and therefore cannot lawfully receive the fee.

D#

Can ask why you are so sure. Have you taken legal advice from a solicitor who specialises in this type of law not just your local CAB?

It is complex and as an EA I also deal with the sale of businesses and have some, every year, going bust. I have held keys and have been under pressure from suppliers to let them borrow a key so they can remove their supplied goods or other items to the same value. I have felt really sorry for some of them (those owed the money) being small family businesses trying to make ends meet. However the solicitors have always said under no circumstances let them take anything.

As someone alse said it is the creditors you would be depriving and you need to be 100% sure of your actions otherwise you could end up with egg on your face. I have been a creditor but on each of those ocassions advised the accountant appointed to look after the affairs that I will not be submitting, or expecting payment of, my bill. I have usually had the greatest sympathy with the failed business.

Howver morally I would expect to pay as I do for any other service I have enjoyed especially a successful one.

Innys

Let's be honest here - most people don't think much of estate agents and therefore I can, to an extent, see why you may want to take advantage of an opportunity to sh@ft them.

Equally, some estate agents have, shall we say, less than admirable morals and, therefore, there is a temptation to ignore ones own morals in dealing with them.

However, have either of these agents acted in an immoral or unsatisfactory manner, in your eyes? If not, why wouldn't you pay them?

If you didn't get your salary at the end of the month because your employer felt they could wriggle out of it on a technicality, I don't think you'd be very happy.

Ultimately, of course, it's your choice but if I were you and had no complaints about the service I had received, I would pay.

Finally, if you do withhold the money, don't be surprised if you find yourself in Court.

mattwallisuk

So a new EA has stepped in and bailed you out and seen the sale through to the end for you, and now you don't want to pay them, or anyone else? Do you see the problem here? Not cool.

jimc_2

Simple question of ethics really - Do you have them or not?

Regardless of legality, you made a contract with the Agent who did their job to make the sale. They then passed on the care to another person to see it through. They all did their job.

Morally you need to keep up your end of the bargain and not be asking "Can I get out of paying". Instead you should be asking "To whom and how should I pay the fee?"

Try asking your solicitor what to do with the money you owe.