Withdrawing prior to exchange and commission to EA

Jowo_2

A friend has become frustrated with the sale process because their allegedly keen buyer has not set a date for exchange and completion nearly 6 weeks after the survey results and queries were completed.

Their buyer hasn't yet signed the contract and two dates when they were supposed to have come into their own solicitors office to do this have been and gone without explanation. Their solictor said the contract would not be signed until the mortgage offer was confirmed but this was sorted out 3 weeks before.

The alleged hold-up is due to missing lease related information on their buyer's own property that needs to be provided to their purchaser in the first part of the chain. However, my friend's buyer accepted an offer on their place 5 months previously and was told all the legals on the first part of the chain was sorted, that the only outstanding conveyancing was between the last two properties in the 3 property chain. It seems a bit tardy to still be dealing with simple managing agent information for the related property at this stage.

Can my friend set a deadline for exchange and if it isn't met, withdraw from the sale process without being obligated to pay the commission to the agent? On the one hand, the agent has found a buyer, on another the buyer doesn't seem to be in any great hurry to conclude the sale.

Will a deadline focus them on sorting out the alleged outstanding issues with the buyer's buyer and bring up any hidden issues in the chain that are causing prevarication?

Gwhiz

Need to read the EA contract to fully answer BUT I would say I can almost guarantee it will say commission is payable if they find a buyer who is proceed-able.

Jowo_2

How can it be demonstrated that a buyer isn't proceedable? Is it pretty much the case that setting a deadline to exchange is going to be a toothless gesture and the buyer can take as long as they like?

Ulfar

No the vendor can have a word with the estate agent and tell them to remarket the property as the buyer looks like a time waster.

DVardysShadow

Gwhiz wrote: »

Need to read the EA contract to fully answer BUT I would say I can almost guarantee it will say commission is payable if they find a buyer who is proceed-able.

if they are proceed-able, then why are the contracts not exchanged?

azkaban420

I've done exactly the same. I've withdrawn out of my sale, as my buyer's FTB is still not ready to exchange, after months of waiting. There is one excuse after the other, and even though my buyer wanted to exchange ages ago, they can't as they need the funds below the chain.

I therefore spoke at great lengths to my EA/solicitor/put it in writing, to say that I was withdrawing from the sale due to the un-proceedability of my buyer, and got it confirmed verbally and in writing from my EA that no fees/commission/hidden charges are due...as they agreed I can't wait forever. Offer was put accepted in May, and and I signed my side of the contract in June. I'd had enough of waiting, and being told 'possibly next week'. EA agreed there was no point being strung along further. We'd already given two 'ultimatums' which were ignored, and I was just fed up of it all.

Ask your friend to have a chat with the EA involved and get them to agree that the current buyer is unproceedable as they can't commit to exchange and a completion date, and have them agree in writing that they won't charge any fees for that reason if the plug is pulled on the sale. Even the EA should know one can't be expected to wait forever.

Good luck,

Az

sonastin

I think the usual phrase in EA contracts is "ready willing and able buyer" or something similar. Your friend's buyer may be willing but unless the chain below sorts itself out they aren't ready or able so don't fit the requirements of the contract that trigger payment being due to the EA.

Pepzofio

You're not in the same chain as this person are you?

mudshark

Gwhiz wrote: »

Need to read the EA contract to fully answer BUT I would say I can almost guarantee it will say commission is payable if they find a buyer who is proceed-able.

Really? IME commission is only payable on completion, if that doesn't happen then no commission no matter what the reason.

LandyAndy

sonastin wrote: »

I think the usual phrase in EA contracts is "ready willing and able buyer" or something similar. Your friend's buyer may be willing but unless the chain below sorts itself out they aren't ready or able so don't fit the requirements of the contract that trigger payment being due to the EA.

I think so to.

I had that wording struck from my last contract with an EA and replaced with 'upon completion'.

Gwhiz

mudshark wrote: »

Really? IME commission is only payable on completion, if that doesn't happen then no commission no matter what the reason.

I agree that's when it's normally payable BUT if a seller just pulls out for the sake of it (not suggesting that's the case here btw) the EA can still claim it so it becomes payable at that moment.