Estate agency dispute - two fees?

Mikeb_5

Sorry to start a new thread on this but I couldn't find anything that dealt with my particular situation.

I am being pursued by my agent for fees relating to a sale made through an introduction made by a previous agent.

When we switched agents, we got a list of introductions that EA#1 had made and gave this to EA#2. We had a sole agency agreement with EA1 and Sole Selling Rights with EA2. All was proceeding well with EA2 until EA1 contacted us to say one of their introductions had called back and said that actually they were interested in making an offer. We told EA2 about this who was a bit upset about this but didn't actually stop us. They certainly didn't claim they had introduced the buyer.

We let the potential come back to view the property again and the next day they put in an offer.

EA2 is now claiming that because the property had been reduced in price (by £10,000) at the time they were instructed vs EA1, any previous introductions were invalid. I'm not sure this is right, particularly given that the buyer came through the old agent. I think EA1 would have claimed an introductory fee had we gone with EA2 as well.

Has anyone seen this situation before?

thanks in advance

Mike

maninthestreet

I believe it's the EA through which the buyer submitted their offer is the one who gets their fee, but the sole selling rights you gave to EA2 might well mean they are also entitled to their fee.

MrsJ2008

Check your contracts.

I ended up moving from 1 agent to another. I gave notice to EA1 and they told me that I would have to pay (approx) 1% fees to them and 1% to EA2 if I sold within 6 weeks of giving notice. Threafter if I sold after 6 weeks EA2 would only receive fees of 2%.

Other advice was that if it was dual agency, again each EA would receive a percentage of the whole fee.

Good luck

Gwhiz

Tell EA 2 to take a hike. The contract will stipulate a buyer they introduced which they clearly did not. They are trying it on, especially as you gave hem a list which included this buyer I assume? Stand your ground.

googler

Mikeb wrote: »

EA2 is now claiming that because the property had been reduced in price (by £10,000) at the time they were instructed vs EA1, any previous introductions were invalid. I'm not sure this is right, particularly given that the buyer came through the old agent. I think EA1 would have claimed an introductory fee had we gone with EA2 as well.

A reduction in price doesn't invalidate any part of a contract, unless written as such in the contract. What does EA2's contract say?

shabby_chic

I was in the same postition 3 years ago, EA1 introduced buyer who was not procedable, got fed up with no offers so changed to EA2. Once buyer became procedable they went to EA2 with offer. EA1 heard about this through the EA grapevine and immediately contacted me to say we should deal with them or we would have to pay their fee anyway, (sole selling rights contract) and they would go through courts if necessary. So unhappily we changed back to EA1.

EA 2 then started to send letters claiming they had 're-introduced' our buyer and wanted their fee also. They sent an invoice to our solicitor but I asked them not to pay it and eventually they gave up but it caused so much extra stress in an already stressful time.

We have just accepted an offer on our current house through another agent and I would never deal with either of these 2 again, didn't even view anything with them but maybe would have if they hadn't played so unfairly.

Good luck.

sonastin

What does the agreement with EA2 actually say about when they are entitled to their fee? Does it relate to any timescales and when does this sale fit in with those timescales (i.e. if it says they are entitled to their fee if you sell it to anyone within the first 6 weeks, is this within the first 6 weeks?) And can you use their drafting against them (e.g. if they haven't defined "sale" and the clause refers to getting a "sale" within the timescales - well sale could be offer, exchange or completion so choose the one that suits you!)

(I don't deal with property law but I have the privilege of reading poorly drafted contracts every day at work - loopholes are your friend!)

maninthestreet

Gwhiz wrote: »

Tell EA 2 to take a hike. The contract will stipulate a buyer they introduced which they clearly did not. They are trying it on, especially as you gave hem a list which included this buyer I assume? Stand your ground.

EA2 has sole selling rights, so may well be entitled to their fee regardless of whether they actually introduced the buyer or not.