May have found my own buyer - EA fee?

purplepatch

We've been on the market about 5 months now, not much luck so far, about half a dozen viewings, no offers.

I was chatting to a friend the other day and she knew someone who desperately wants to live in our neighbourhood and one thing has led to another and now this person wants to come view.

I am probably getting excited for nothing, but they do seem very keen. Where do you stand with your estate agent if you sell your house yourself? The contract says the fee is payable when a buyer is introduced by them which obviously this isn't, but it also says it's payable when a buyer is introduced by another agent. Does a mate count as 'another agent'?

Seems most unfair if after they have been pretty inconspicuous for the past few months, they still make us pay them commission!

Also, what is to stop me terminating the contract and then proceeding with a private sale at the end of the 14 day notice period?

Can anyone help me with this? Would be good to know where we stand.

Doozergirl

You would be better posting the exact phrasing of your contract than letting us assume on the basis of what you've said.

Your mate will not count as the introducer; you have found your own buyer. It's the wording of your contract that

Some agents will check to see if houses eventually sell once they've been taken off the market and it has happened on the board here that a bill has landed on the doorstep so I would adhere to the terms of it. Hopefully the wording is such that you don't pay if you find your own buyer.

timmyt

Doozergirl wrote: »

You would be better posting the exact phrasing of your contract than letting us assume on the basis of what you've said.

Your mate will not count as the introducer; you have found your own buyer. It's the wording of your contract that

Some agents will check to see if houses eventually sell once they've been taken off the market and it has happened on the board here that a bill has landed on the doorstep so I would adhere to the terms of it. Hopefully the wording is such that you don't pay if you find your own buyer.

Indeed. Some contracts can say they have sole selling rights, meaning if you find the Buyer then you still pay.

The devil is in the exact detail of the wording.

5 months is a long time to be on with one agent.....have you considered changing? Fresh agent, fresh photos, fresh offers etc

9wizard9

From what I remember (though I'm not an expert):

If the contract is Sole Selling Rights, then you'll be liable for an agency fee regardless.

If the contract is Sole Agency, then you'll be fine - your mate introducing won't count and you can sell without any fee liability.

Anyone with legal background - feel free to correct me!

purplepatch

If we act as sole agent, you will be liable to pay to fee to us if at any time unconditional contracts for the sale of the property are exchanged with a buyer introduced by us during the period we act as your sole agent or with whom we had negotiations about the property during that period, or with a buyer introduced by another agent during that period.

Does that help any?

We are considering another agent, but we were chancing our arm a bit with the price to start with. We've just dropped the price so I will give it a bit longer. Also the period over the winter isn't the best for house selling I guess.

Maybe my mate will come up trumps

purplepatch

Oh and lots of mentions of Sole Agent and Sole Agency, but nothing about Sole Selling Rights anywhere. Dare I say it's looking a bit promising....

timmyt

sounds from those words you are ok, self introduced is not covered from reading that.

you can stil give the buyer the HIP even though you do not have to, save te EC which you do.

check they wonbt make you pay various exit charges (like an inflated HIP price, or 'exit' fee I heard about from a well know EA

purplepatch

I used an independent hip company, not the EA. No mention of any exit fees, just says it's an open ended contract 14 day notice period.

purplepatch

Well this friend of friend has seen the house, really likes it and is going to talk to a mortage adviser this week to see if they can borrow the required amount.

When and how should I broach this with the estate agent? Don't know whether to be upfront about it or whether to just take the house off the market and say we're going to leave it until the summer then do my own deal after the 14 days is up.

We have a viewer through the agent this Thurs, they seem very keen too, want our particular neighbourhood and are in rented. So that could complicate things if they're an interested party too.

g_attrill

I would be up-front with the agent, if they find out it was sold they will think you were lying to avoid paying a fee that you think you should be paying (even though it doesn't seem to be payable).

LandyAndy

If your friend's friend agrees to buy then terminate your contract with the EA and ask them to provide a list of the people who they feel they have introduced and who would give rise to commission being paid if they bought your house. Your friend's friend won't be on that list and you will be able to sell to them with a clear conscience and no liability.