Do I have to pay the estate agent fees?

timmyt

Keykey wrote: »

Hello, I've just had my property valued by a few agents, one of whom sent someone round to view the house the next day, and turns out they want to buy it. I've not decided which agent to go with yet if any, there has been no verbal agreement, not signed or seen a contract, no pictures even taken. It has definitely not gone on the market, partly as I was hoping to have a think and possibly go for a private sale as I'm trying to save money after a recent pay cut! I'm not someone who wants to make a quick buck, or scam the agents out of any money they might deserve, but if I agree a sale with the potential buyer, am I legally obliged to pay an agent fee, despite one not being agreed on in the first place?

it is a trick, so i would certianly not sign with the agent who sent someone around, and I would publicise their name on your next post.

you arenot in a contract with anyone, and if this 'buyer' comes along through whichever agent you choose, then that agent gets the fee. you owe nothing to anyone at the moment. you could even sell directly to the buyer and not instruct anyone....but it is a trick

my advice is to avoid a national chain estate agent for the above and many other reasons.

use a local indepnt, nd don't go for the highest valuation, as that lures you into using them...they don't get the price...and because you stay on the market so long, you end up getting less than the vaergae valuation.

good luck.

Running_Horse

EA contracts vary, with some charging for introducing a buyer, and others charging for a sale whether or not they introduced them. When people come on here asking about avoiding fees, this is usually the first question people ask. How can the fine details of a contract be enforced, when it is not clear what would or would not have been signed in the future? Having said that, I would not want the risk of being pursued by an EA and his lawyer in future, and would negotiate a fee; after all, they did find a buyer.

Doozergirl

Running_Horse wrote: »

EA contracts vary, with some charging for introducing a buyer, and others charging for a sale whether or not they introduced them. When people come on here asking about avoiding fees, this is usually the first question people ask. How can the fine details of a contract be enforced, when it is not clear what would or would not have been signed in the future? Having said that, I would not want the risk of being pursued by an EA and his lawyer in future, and would negotiate a fee; after all, they did find a buyer.

I agree with that. I've not said that they should be bound by the fine detail of their standard contract and tied in to using them if this buyer doesn't proceed, but there is a contract created by using someone's services for which you would normally pay.

You invite an estate agent into your home, ask them to put a price on it, and then invite someone that they introduce into your home with a view to buying it at that price; which that person subsequently decides to do. It's not an accident! You did invite them to do that job for you and they deserve the fee for doing that. And they will support that sale through to completion which is also part of that fee.

A court is going to decide that you were knowingly marketing your house with an agent, it wasn't an accident. Whether you're bound by the small print of their usual contract is probably by-the-by if the offer proceeds to completion. However, there is a negotiation to be done with the EA, which they will probably be open to, but you can't pretend that they haven't done a job by getting it sold on the first viewing - that is very much doing their job.
Two parts to that negotiation:
a) how much you pay for the introduction. No court in the land will decide that you accidentally sold your house to their buyer. You will have to pay a fee. A fair one. And I think the agent will pursue you - for their full fee so you'll end up paying either to defend yourself or their full fee, or both. Finding you the right buyer immediately doesn't generally afford you a reduction but you can try.
b) Subsequent contract terms if this buyer doesn't proceed. Whether that is a written agreement that you will not be requiring their services and will be using a different agent or you agree to proper terms with them from here-on in, I would get it done sooner rather than later so you can get that tie-in over and done with while this offer goes through.

Selling privately isn't easy and it's really quite hard in a quiet market like this. Don't underestimate the fact that it isn't co-incidence that an estate agent, who people contact when they are looking for houses, had contact with the right sort of person for your house. It would be a lot harder for you to make that contact.

jackomdj

But surely this is the same as starting a job without signing a contract, or a rental without signing. By accepting the viewing you have accepted that there is a contract in place.

muskoka

I've recently purchased a property cash which was advertised on RM. Agent wouldn't allow me a viewing, so I approached a neighbour to the empty property who passed my details directly onto vendor. I then viewed within 24 hrs - agreed a price direct with vendor over next few days. Vendor asked me how i knew house was for sale - I advised is on RM. Vendor then told me they'd not yet signed any EA contract....private sale went ahead. Vendor has legal begal in family who has advised there's no liability on part of vendor in this instance...Vendor heard nothing so far from EA

pararct

jackomdj wrote: »

But surely this is the same as starting a job without signing a contract, or a rental without signing. By accepting the viewing you have accepted that there is a contract in place.

Contracts don't always have to be 'written down'.

You window cleaner attends fortnightly and cleans your windows, he then knocks your door and requests payment. You have no written agreement for him to clean your windows simply an implied one. He did it first time round and you paid him for it at the agreed price, he said see you again in a fortnight and you did not object.

It is no different for the estate agent. He was invited in with a view to offering a quote and then offered his service by introducing a potential buyer. This service was accepted by allowing the potential buyer to view.

Any court in the land would find for the agent in a dispute. Only question is what the court would award (as this has not been agreed). I suspect an average % figure for agents in the area would be levied in such circumstances.

DVardysShadow

muskoka wrote: »

I've recently purchased a property cash which was advertised on RM. Agent wouldn't allow me a viewing, so I approached a neighbour to the empty property who passed my details directly onto vendor. I then viewed within 24 hrs - agreed a price direct with vendor over next few days. Vendor asked me how i knew house was for sale - I advised is on RM. Vendor then told me they'd not yet signed any EA contract....private sale went ahead. Vendor has legal begal in family who has advised there's no liability on part of vendor in this instance...Vendor heard nothing so far from EA

Of course, if the EA obstructed a viewing and then tried to sue your vendor, your testimony would allow vendor to demolish EA completely.

Incyder

Incyder wrote: »

It could be a 'trick' to make you go with them and get you signed up.

A very interesting thread and problem, this one.

Perhaps my idea of a trick was sort of right but for a different reason.

It could be that by you verbally accepting the 'viewing' (real or not)
the EA now correctly assumes you are his client.

As has been said above, a verbal agreement could be enough.
If you see the 'for sale' board being banged into your garden tomorrow then you'll know why.

I would guess that as no length of contract was agreed, or % fees negotiated, or photo's/floorplans taken then you can undo the agreement by issuing a superceeding verbal contract of your own down the phone telling him officially you no longer wish him to be your agent.

Unless of course, you do want him to be

DVardysShadow

Incyder wrote: »

... It could be that by you verbally accepting the 'viewing' (real or not)
the EA now correctly assumes you are his client.

I would say that a contract by default would be taken by the courts to contain the bare minimum of terms to support what the OP had consented to. So no exclusivity, no minimum term, just sufficient to ensure that the EA got a fee on a successful introduction.

sonastin

For a contract to be valid you need
An offer - we have a buyer
acceptance - yes they can come and view
mutual consideration - they find buyers, you pay fees
intention to enter into a legal arrangement - inviting them round to value demonstrates your intention
and the right to enter into the contract - you own the house so I guess you're over 18.

So they can argue a contract has been formed when you accepted the viewing. Your best bet is to negotiate a suitable fee as soon as possible. I reckon this doesn't need to be as high as other EAs would charge because they haven't paid their usual expenses to market your house. If you can't reach agreement, prepare a suitable defence to any claim they may bring by ascertaining what other EAs would charge and the reasons why you would have chosen someone cheaper.

And definitely clarify the situation of what happens if this buyer doesn't buy.