What constitutes an "introduction" by an estate agent?

austinseven

I plan to put my house on the market with an estate agent on a 'no sale, no fee' and a sole agency basis, yet the agent does not want me to sign any formal contract.

However, their letter of instruction which they've sent me says "we will be entitled to commission if a person we introduce to the property eventually purchases your property even after the property has been withdrawn from us."

If, for some reason, I do withdraw the property from them and later place it with another agent, will I actually have to pay the first one a commission if it later sells to someone who was previously known to them? What constitutes an introduction? Is there any time limit on this? How could I get the second agent to agree that a buyer might have first heard of my property via the first agent?

Anyone have an answer?

carlsberggal

'Introduced' It means anyone who has viewed your property through them. If you change to a different agent you would need to give them a list of names that have viewed your property so they know 'who was introduced' by the previous egent. You would only pay commission to the agent who introduced not to both of them.

princessamy86

There was a case (Foxtons? sorry can't remember) where it was shown that a fee is payable only if the agent actually introduced the party to the sale, so a viewing is not enough to constitute paying a fee. As carlsberggal says, best to get a list of viewers if you change agents.

googler

I'd insist on a formal contract outlining their terms and conditions as appear to be outlined in the letter of introduction, and also including their fee scale and any other charges that will be payable.

Only once you are both happy with this contract do you both sign.

austinseven

googler wrote: »

I'd insist on a formal contract outlining their terms and conditions as appear to be outlined in the letter of introduction, and also including their fee scale and any other charges that will be payable.

Only once you are both happy with this contract do you both sign.

This is why I am nervous, I suppose. They say they do not ask their clients to sign any formal agreement. But I worry that I am implicitly accepting their terms once they have declared them, even if I don't sign anything. Having no formal contract is presented as making it easy and flexible to deal with them, but that's only true if it also limits my obligations whilst not reducing their service level. Goodwill and all that is all very well, until something goes wrong .....

hometrader

"Introduction" is not only someone who has viewed though also anyone who has seen the details, spoken to the agent, or even seen their board. If the agent can prove this then you may be liable for their fee.

Whether or not their agreement stands up in court is debatable, but do you want to risk going to court?