Do we have to pay an Estate Agent after termination of Contract?

mcandrew

Do we have to pay an Estate Agent after termination of Contract?
We employed an estate agent under sole agency and then included them on a multiple agency basis. (Under sole agency they introduced a 'cash buyer - nothing to sell etc etc and basically pressurised us to accept 10K less. Cash buyer then needed a loan which the agency knew about but never told us, everyone was proceeding well we thought until our solicitor alerted us to 'somethings going on here...'. Cash buyer then faded away. Agency shrugged. We lost money on fees etc for our purchase.) Tried to rise above this and kept them on as part of multiple agency. They then introduced a buyer who was very keen. However no offer came and two months later after getting nothing out of the agent bar shrugs and 'we will have to wait for them to sell theirs' and a very casual viewing from one other person,we gave the agent notice. A month later we were contacted direct by the keen buyer who has put in a offer. Where do I stand with the estate agents fee? In their acknowledgement letter of our termination they say that 'if at some future date, there is a completion of sale ..... our charges will become payable'. However there is nothing in their Terms para on multiple agency (although sole agency sort of refers to it). I believe everyone should be paid for their services but I don't believe that we have had a good service from them and as we will process the sale I don't really want to pay them. Anyone had experience of this?

courtjester

If your contract says you have to pay them if the buyer comes back after termination, then you have to pay them.

The question of how well they have performed is a different matter and may well give you leverage to re-negotiate the actual amount of the fee due (well worth arguing the toss providing that you don't try and say you owe them nothing).

Look at your contract wording (what they say in their termination letter is irrelevant unless this merely highlights the contract terms you have signed, which I suspect it does.

Jorgan_2

Does there agreement mention something along the lines of 'unconditional exchange of contracts for the sale of a property takes place with a buyer who we had negotiations with during our agency period'? Then you will have to pay them.

From what you have said, their letter of termination is a little open ended, what if a buyer came back in 12 months would you have to pay their fee then?

I think you will find it hard to fight the case as the buyer has come back so soon after the termination. You may be able to try for a reduced fee as you feel you had suffered poor service.