do I need to pay estate agent???

dprovan

I have posted many times about my rollercoaster sale/no sale.

Very briefly I have had my house up for sale for 18 months 7 with this estate agent. I have hasd my sale fall through 3 times.

Now that we are at the 11th hour (before I loose the sale I am aiming for) my estate agent eventually gets their but in gear and gets me a few investors (they phoned them from their book) guy comes today indicates he will go in on Monday and offer full asking price. I know my house is underpriced it was valued at todays price 18 months ago and the market here in N ireland is rising 10% per year in these parts. In all honesty I think its probably work 5-10k more.

However I am prepared to let it go at this price for quick sale. Also the house I am buying is now valued about 45k more......

However here is the catch my brother in law who is loaded, phones last night saying they are keen to buy our house with cash....Its a long story...But this would save us on estate agent fees.... Anyway this isn't a definate yet, however I will be talking with him before monday, but now that guy 1 is putting a bid in at asking price on Monday I am thinking I will need to pay estate agent over £1600 even if I sell to brother in law.

I can't find contract, but think the bid of asking price would mean i need to.

In many ways its a good position to be in, but Im thinking it would be ironic if I pay 1600 to sell to family (if that happens)

any views?

firespire

If someone bids asking price and you reject the person as you don't like them to buy/you decide you want more/you can not go through with the chain, I have not heard of the rule that you have to pay the estate agency commission. You will have to get a copy of the contract.

I thought if you want to sell to brother in law you can withdraw it from sale through estate agency and sell to him as it is your relative and not someone who has been introduced to the property through the estate agents.

lilyann1

Agree with firespire. You do not have to accept this bid and can tell EA you have decided to take it off the market.Then you can sell privately to a relative or friend.

jamminjamaica

no if you sell to our family member privately you wont have to pay the agent. look at your agreement between you and the agent. i am sure the only fees you will be out is the listing and advertising fee.

MissMotivation

Depends on the wording of your contract with the EA, if they have "Sole Selling Rights" then any purchaser whether introduced through the agency or not would result in you have to pay their fee.

If you are under a "Sole Agency" then the fact the the Brother In Law was not directly introduced through the EA means you would not have to pay their fee.

Sumostar

But any contract for sole selling rights will have a time limit. You need to check your contract. Also, are you working on no sale no fee (which might have a tie in) or charges for work done (adverts, photo in shop window...)?

courtjester

As always, the answer to this type of question depends almost entirely on the PRECISE terms of your contract with the agent - although there are generalisations regarding the meaning of phrases like 'sole agency' etc., these come to nothing if the contract says something different to the norm.

In particular, watch out for a statement in the contract that might say something along the lines of the agent introducing a "ready, willing and able purchaser..."

This will mean that if the agent brings in someone who they can prove was indeed ready, willing...(making a formal offer) and able.... (has the means to proceed and is a viable purchaser), then the agent's job is done and the commission is due, even if you decide not to proceed with that purchaser.

Before you can come to any conclusion, you must review the full terms of the contract you have with the agent.

dprovan

Hi all,

thanks for replys,

I have got a copy of the contract it says they are sole agents and

you will be liable to pay the agreed commision (as stated overleaf) if at any time unconditional contracts for the sale of the property are signed:-

a) with a purchaser introduced by us during the period of our sole agency or with whom we had negotiations about the property during the period.

b) or with a purchaser introduced by another agent or person during that period.


I have been avoiding them all day as they left a message saying good news. This presumably means the investor wants to buy 9he needs a mortgage).

My wifes brother will phone us tonight with a decision, Im guessing he will want it. Whilst he will look for a bargain, I know I can trust him and he has the cash. On the basis of above I am assuming I will have to end the contract and then 'sell' to brother in law. If I tell the agent the reason for me not accepting the offer from investor they will still charge me due to clause (b).

In some ways I feel un-ethical as the estate agent has a buyer for me. However they have had 3 buyers before who all promised the earth to pull out, cost me money and heartache, and who is to say this one will be any different. I am also cautious re my solicitor as she was recommended by agent so they must have a good working relationship. Can I check I have understood the above correct it is the difference of £1800

thanks

lynzpower

If you sell privately to someone you already know ( and who is going to argue you dont already know your BIL, that the EA have introduced you- no one) then no, you can just withdraw it from the market, sell to your BIL and job done, EA doesnt get paid.

Bossyboots

Clause b states it comes into play if you exchange contracts with someone "introduced by another agent or person". Your brother-in-law has not been introduced by anyone so I can't see how they can invoke the clause. I would take "person" to mean a financial advisor or someone else who viewed the property or something like that, not a relative.

tina35

You have the last word on this matter but if this helps, here you can find an article on choosing a good Real Estate agent

Regards Tina
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