Estate Agent Contract

hpa423

My MIL is selling her house, and has been on the market for ages (18-24 months). She is on about taking it off the market as she's had enough of all the hassle - she's had a lot of viewings and no reasonable offers as yet. I suggested selling privately, but she says her EA will want their commission if it sells up to six months after it is taken off the market. They say it is because any sale in that period of time is likely to be because of their advertising, which I find a bit of a stretch! She did sign a contract to that effect, but I wonder if this is realistically enforceable. I would be grateful for any views on this. TIA

maninthestreet

hpa423 wrote: »

My MIL is selling her house, and has been on the market for ages (18-24 months). She is on about taking it off the market as she's had enough of all the hassle - she's had a lot of viewings and no reasonable offers as yet. I suggested selling privately, but she says her EA will want their commission if it sells up to six months after it is taken off the market. They say it is because any sale in that period of time is likely to be because of their advertising, which I find a bit of a stretch! She did sign a contract to that effect, but I wonder if this is realistically enforceable. I would be grateful for any views on this. TIA

The EA cannot claim commission if the offer was not submitted via them.
There is a legal precedent for this.

hpa423

maninthestreet wrote: »

The EA cannot claim commission if the offer was not submitted via them.
There is a legal precedent for this.

Thanks you thats just what I was hoping. Would you be kind enough to tell me where I could find details of this please?

googler

They can only claim a commission within 6 months if the person buying the house was legitimately introduced by the agent to the house whilst the contract was in force, and they can prove some active role in introducing that person to the sale.

If someone totally new comes along and buys the house after MiL's contract with the EA ends, they haven't a leg to stand on.

For legal precedent, google "foxtons commission claim rejected" or similar - it was a recent case.

pastmybest

See this link and extract from page below.

http://www.which.co.uk/advice/dealing-with-problem-estate-agents/rejecting-a-commission-claim/index.jsp

"However in April 2008, Foxtons lost a High Court case over the definition of 'introduced'. The judgement found that to claim a commission fee, the agent must show they were the effective cause of the sale. In practice, this is likely to mean that an agent has to do more than just introduce a buyer but work on the sale to completion. Or, as the judge put it, introduce the purchaser to the purchase, not merely to the property. "

timmyt

hpa423 wrote: »

My MIL is selling her house, and has been on the market for ages (18-24 months). She is on about taking it off the market as she's had enough of all the hassle - she's had a lot of viewings and no reasonable offers as yet. I suggested selling privately, but she says her EA will want their commission if it sells up to six months after it is taken off the market. They say it is because any sale in that period of time is likely to be because of their advertising, which I find a bit of a stretch! She did sign a contract to that effect, but I wonder if this is realistically enforceable. I would be grateful for any views on this. TIA

ouch, not heard that one before. 6 months after you leave them!

Post the actual wording.

The above case does not help as that wa to do with 'introduced'. YOu are suggesing they basically say they have sole selling rights during their contract and after for 6 months. I suppose that is a backhanded way of getting a minimum period of selling contract which many agents have anyway, but still, 6 months and not depedent on proof of introduction. Restraint of trade surely!


Sounds like an unfair contract term...speak to a lawyer in that area.

googler

For a supposed 'property solicitor', you really don't come across with a professional air.....

MissMotivation

The EXACT wording of the contract she has signed must be provided before we can give any accurate advice.

Generally, even after the Sole Agency/Sole Selling Rights period has expired the Agent can claim commission if any person introduced during the term of the Sole Agency/Sole Selling rights period purchases the property.

The Foxton's case is useful here because of the actual meaning of the term introduced. For example.....4 months after coming off the market a purchaser that viewed the property previously, makes an offer that is acceptable to the Vendor AND the EA is involved in the negotiation and progress of the sale.....EA entitled to their fee. If someone who saw the property for sale then goes on to approach the Vendor directly, after the property is withdrawn from sale, and negotiate a price etc etc then my understanding is that the EA is not entitled to a fee.

pastmybest

Miss M thanks for the clarification.

I am about to sack my EA and asked him for a list as has been suggested but they say due to the data Protectations rules he can't provide one.

After speaking to my solicitor I have emailed the EA and said it can be given to my solicitor who will agree not to divulge any senstive details buthe is thinking about it.

So my latest question is to what level of detail should the list be?
Name, address, why the EA feels that party should be on the list?

MissMotivation

pastmybest wrote: »

Miss M thanks for the clarification.

I am about to sack my EA and asked him for a list as has been suggested but they say due to the data Protectations rules he can't provide one.

After speaking to my solicitor I have emailed the EA and said it can be given to my solicitor who will agree not to divulge any senstive details buthe is thinking about it.

So my latest question is to what level of detail should the list be?
Name, address, why the EA feels that party should be on the list?

Normally it's just a list of names. I can understand the EA not being prepared to give addresses and phone numbers as this would be a breach of the DPA......but names is fine.

pastmybest

MissMotivation wrote: »

Normally it's just a list of names. I can understand the EA not being prepared to give addresses and phone numbers as this would be a breach of the DPA......but names is fine.

I can see my EA being as awkward as possible and given a 1,000 names by working through the alphabet. My solicitor said name and town/village is not too much to ask but..........

Thank you though for helping.