Chain Break - Which EA gets commission??

Financial_Savvy

I was in a chain that fell through. The buyer at the top of the chain considered doing a chain break and purchasing our house so the chain could complete. We gave notice to the EA on the day that it fell through, and in the 2 week notice period the EA sent him the details. His name is on the list of buyers introduced by EA one.

On the agreement with the new EA, they agreed to exclude any commission from buyers already introduced by the previous EA.

The new EA found a buyer some weeks later but no sign of any progress after 8 weeks.

The top of the chain now are considering again doing a chain break. But I am dealing direct with the top of the chain and agreeing a new price.

No agent has done a viewing yet. I am giving notice to the current agent.

If the top of the chain purchases my house, who if anybody do I have to pay the commission to?

PasturesNew

If neither estate agent has introduced the chain-break buyer to you, then estate agent 1 has no claim. Estate agent 2 may have a claim, depending on the type of contract you signed with them.

Look through for a section that mentions words like "sole agent" "sole selling", then copy type that whole paragraph in here so we can ascertain what type of contract it is most likely to be.

It is also not clear if the buyer EA2 found you is in a proceedable position. If they are proceedable and you pull out, EA2 could charge you for that as their obligation is to find you a willing and able buyer, which they would have done.

Doozergirl

Echoing Pastures New, you need to check both contracts. If agent 2 have signed away their rights to commission from anyone introduced before their involvement, then they aren't entitled to a fee.

If agent one was employed on a sole agency basis, you don't owe them any money either as they didn't introduce the buyer. If you signed a sole selling rights agreement then theoretically you owe them.

PropertyPro

The first EA may argue that they introduced the chain break buyer by mentioning your property and sending them the details of the property.

If the second agent has already agreed to exclude commission from that buyer, than they shouldn't be due a fee unless a buyer they introuced completes buying your property.

As Pastures mentioned, pay close heed to the contract, especially if it mentions sole selling rights.

Financial_Savvy

has anybody manage to challange an EA's definition of Introduced?

Ian_Griffiths_Halifax

The ES's definition matters for nothing. The definition of Introduced in this sense is 'presentation of one person to another'. Unless their contract with you specifically states any other definition, then this is what I would use.

Financial_Savvy

The contract says

The term 'introduced by us' means any prospective buyer who became aware of the property through our marketing efforts including flagboards, media advertising, internet advertising, sales particulars and other marketing material.

Introductions made during the period of this agency will remain valid for a period of six months following termination of the agency agreement.

Ian_Griffiths_Halifax

Financial_Savvy wrote: »

The contract says

The term 'introduced by us' means any prospective buyer who became aware of the property through our marketing efforts including flagboards, media advertising, internet advertising, sales particulars and other marketing material.

Introductions made during the period of this agency will remain valid for a period of six months following termination of the agency agreement.

That's the important bit IMO.

Financial_Savvy

Do you think they will have a claim to the commission??

Ian_Griffiths_Halifax

I would say a definite NO as they didn't 'became aware of the property through our marketing efforts'. The buyer was already aware of the property.

Financial_Savvy

Do you think the buyer became aware of the property when the first agent sent the details to him? His name is listed on 'introducted buyers'. They are the agent who I think will expect the commission.