Theoretical question about EA fees for vendors?

drc

Theoretical question. I'm not planning on buying in the near future. However, something in another thread got me thinking.

If you see a property on Rightmove/Findaproperty for sale and you can work out where it is, would the vendor have to pay EA fees if you contacted them directly (by posting an interested note through the door etc)? Since many properties on Rightmove are advertised by several different EA how could they assign a fee to any one EA and how could they prove that the house was discovered via an EA via Rightmove/Findaproeperty etc and not through word of mouth that it was for sale?

Fire_Fox

If the house is not sole agency then often fees are due to ALL agents when the house is sold via one. Furthermore many contracts have a clause stating that the money is due even if you make a private sale. Let's face it, you aren't the first nor the last to try to play the system, the fact that the practice isn't widespread suggests it's not the easiest thing to get away with.

VIGILANT22

Fire_Fox wrote: »

If the house is not sole agency then often fees are due to ALL agents when the house is sold via one. Furthermore many contracts have a clause stating that the money is due even if you make a private sale. Let's face it, you aren't the first nor the last to try to play the system, the fact that the practice isn't widespread suggests it's not the easiest thing to get away with.

I wonder if Fire Fox works for free?

Fire_Fox

VIGILANT22 wrote: »

I wonder if Fire Fox works for free?

That one went over my head ....

G_M

If the house is not sole agency then often fees are due to ALL agents when the house is sold via one.

This is very unusual. Normally the agent who introduces the buyer gets the fee.

many contracts have a clause stating that the money is due even if you make a private sale.

This is also unusal nowadays. Some contracts specify 'sole selling' in which case the fee is payable whoever finds the buyer. Usually it is 'sole agency', in which case no fee is payable on a private sale. See here.

would the vendor have to pay EA fees if you contacted them directly

Probobly not. Unless the EA could show that their ad on Rightmove had led you to the vendor.

googler

drc wrote: »

If you see a property on Rightmove/Findaproperty for sale and you can work out where it is, would the vendor have to pay EA fees if you contacted them directly (by posting an interested note through the door etc)? Since many properties on Rightmove are advertised by several different EA how could they assign a fee to any one EA and how could they prove that the house was discovered via an EA via Rightmove/Findaproeperty etc and not through word of mouth that it was for sale?

It depends on the contract the seller has with the EA.

Ian_W

drc wrote: »

If you see a property on Rightmove/Findaproperty for sale and you can work out where it is, would the vendor have to pay EA fees if you contacted them directly (by posting an interested note through the door etc)? Since many properties on Rightmove are advertised by several different EA how could they assign a fee to any one EA and how could they prove that the house was discovered via an EA via Rightmove/Findaproeperty etc and not through word of mouth that it was for sale?

A bit stalkerish don't you think, given they're not selling privately but through EA(s)?

At the end of the day it would be up to the vendor as to whether they wished to evade payment of a lawful debt by deceiving the EA - not you. Personally I wouldn't do it but I'm sure others would.

However, the initial approach would certainly sound alarm bells and get me to treat you with extreme caution!! :eek: Why are you worried about anyway, it's the vendors billto pay (or not)? Oh, I get it - you'd want them to knock the EA's bill off the selling price. So what's in it for the vendor other than maybe having to fight a County Court claim?

Doozergirl

G_M wrote: »

This is very unusual. Normally the agent who introduces the buyer gets the fee.

This is also unusal nowadays. Some contracts specify 'sole selling' in which case the fee is payable whoever finds the buyer. Usually it is 'sole agency', in which case no fee is payable on a private sale. See here.


Probobly not. Unless the EA could show that their ad on Rightmove had led you to the vendor.

Everything that Fire Fox said was correct. There was no suggestion of anything being a standard practice, just the use of the words 'often' and 'many'.

Differing contract terms are not unusual at all. I've come across multiple agent contracts in all guises, in equal measures - those who want paying full amount regardless of who sells, those who will share the commission between agents and those where 'winner takes all' Sole selling rights agreements are also not unusual

The vendor should pay the EA - It would be under the terms of the contract and the right thing for the vendor to pay the EA if they knew where that buyer had originated.

Even if they did not pay the EA and felt that they would get away with it; if they were unscrupulous enough to do an agent out of their due then they're hardly going to pass on the benefit of the saving to a buyer. If you don't make any more money yourself as a vendor then you may as well have done the correct thing and gone through the agent in the first place, iyswim.