What is meant by "unconditional contracts" in Estate Agents T&Cs

moneybunny123

In the T&Cs with our Estate Agents, there is a paragraph that states "We would be entitled to Fees if You terminate the Agreement and within six months of the date of termination exchange unconditional contracts for the sale of the Property to a purchaser Introduced by Us during the Period of This Agreement.

Does it mean completion of a sale (i.e. all done and dusted) or just an offer agreed (i.e. a shake of hands with someone making an offer)??

keystone

Once you get an offer accepted then you instruct solicitors on both sides. Once you have exchanged contracts the deal is done. Thats the date its refering to. The completion date is always later to enable both vendor and purchaser time to get moving arrangements etc in place.

Cheers

googler

Break it down and it means what it says - exchange contracts with no conditions attached (i.e. unconditional)

For example:

Buying solicitor says "my client agrees to buy your house for £X subject to 1 - us getting a survey done and being happy with it, and 2 - subject to you showing us that you own the property and are legally able to sell it.

1 & 2 are conditions attached to the contract. Once these are removed, and the solicitors exchange contracts having satisfied these conditions on each side, they are exchanging unconditional contracts. This isn't done when an offer is accepted, but much further down the road.

moneybunny123

Ok. So in simple terms (because I am) it simply means once contracts are exchanged. So this has to be 6 months after a contract is terminated with the EA?

poppysarah

I would ask them (if it is not specified?)

keystone

mandbaby wrote: »

Ok. So in simple terms (because I am) it simply means once contracts are exchanged. So this has to be 6 months after a contract is terminated with the EA?

Yes if you are exchanging contracts with a party that the EA originally introduced to you via their marketing activity on your behalf. As long as the agreement doesn't give them sole selling rights (which is not the same as sole agency) you can sell to anyone else you like howsoever introduced. Be careful though that that person doesn't knock on the door having seen the board outside. The EA will count that as an introduction.

Any agreement which gives them sole selling rights should be rejected BTW.

Cheers

moneybunny123

OK - here's how it is. A couple that saw our house several months ago through an EA offered on our house. We turned it down. We are no longer with the agent. Due to a change in our circumstances, we got back in touch with the couple ourselves to tell them that we would now consider that offer. They are interested, and may wish to proceed. However, we're worried that the EA will find out and want their share. But, the way I see it is, if it's after the 6 months they can't charge, right?

Yorkie1

According to what you typed at the start, if the exchange of contracts takes place more than 6 months after you end the contract with the EA, no they are not entitled to any fees.

keystone

mandbaby wrote: »

OK - here's how it is. A couple that saw our house several months ago through an EA offered on our house. We turned it down. We are no longer with the agent. Due to a change in our circumstances, we got back in touch with the couple ourselves to tell them that we would now consider that offer. They are interested, and may wish to proceed. However, we're worried that the EA will find out and want their share. But, the way I see it is, if it's after the 6 months they can't charge, right?

Yes that is correct according to what you said about the contract with the agent -if its not quite like that it might be a different story. Perhaps it might have been better to give the full facts right at the outset of your thread then you would have had your answer several hours ago. Sorry if that appears blunt.

Cheers

moneybunny123

To be honest, I was just checking that "unconditional contract" didn't just mean an agreement with the potential buyer - i.e. an offer accepted, like a verbal contract.