Estate agent still wants fees despite collapse of move

allonewordnogaps

We were about to sign for a new house and the sale of our exisiting house, when our (already creaky) marriage finally collapsed...
The estate agents claim that we still owe them the 1% of the agreed sale fee (reduced from 1.5% as a 'goodwill gesture') ie £2k, even though the buyers did not sign the contract on the sale (and nor did we).

Does anybody know, are they within their rights to enforce this? Do I need to get a lawyer on the case (our conveyancing solicitor has declined to advise us because he receives referrals from the estate agents, so he clearly has a conflict of interest).

thanks.

mrcow

How can they expect their money when there was no house sale?

What did your agreement with them specify?

mandi

Was the contract a " no sale no fee" ?

allonewordnogaps

Thanks...I'm quoting from the contract:
"Our fee will be 1.5% plus VAT at the time of completion....
.....the above fee is directly payable on completion of the above property , this should be dealt with by your chosen solicitor"

mrcow

Well they are stuffed then.

There was no completion.

Some estate agents will charge for just finding the sale, but they will have to specify it at time of contract.

Any estate agent will know that house sales can fail for 1000 different reasons. They are trying it on.

allonewordnogaps

Correct - it was a no sale no fee contract. However they argue that because a prospective buyer was found, WE are in breach of the contract.

Colincbayley

allonewordnogaps wrote: »

Thanks...I'm quoting from the contract:
"Our fee will be 1.5% plus VAT at the time of completion....
.....the above fee is directly payable on completion of the above property , this should be dealt with by your chosen solicitor"

In which case it seems very clear. No Sale - No Fee
Tell them to poke it.

mandi

Tell them to go :whistle: no sale no fee means exactly that

allonewordnogaps

Thanks everyone - you are confirming my gut feeling that they are trying it on. Would the situation be any different *IF* the prospective buyers had signed THEIR contract?

Colincbayley

allonewordnogaps wrote: »

Thanks everyone - you are confirming my gut feeling that they are trying it on. Would the situation be any different *IF* the prospective buyers had signed THEIR contract?

No, that is only one half of the deal, the exchange of contracts would only of happend when both parties have signed and solicitors have exchanged contracts and deposits.

Besides, you have quoted from your contract saying the EA fee is payable on COMPLETION not exchange.

ILW

Is there a clause in their contarct that says, if the seller volutarily pulls out that they will be liable for a fee?