A tiny bit of advice please re estate agents fees

scorgeous

We put our house on the market only a couple of weeks ago and have had three viewings but no second viewings or offers yet. The thing is, I have found a newbuild that i have well and truly fallen in love with and have put in a part exchange request as the house is due to be finished this weekend and we should hopefully be able to exchange within 28 days. We are tied into the estate agent under a 14 week sole vendor agreement. If we part exchange will we need to pay estate agents fees even though they never found us a buyer? Any advice would be truly appreciated

sonastin

I am not sure what "sole vendor" means and that is the key bit of info we need.

If your agent has "sole selling rights" then his fee is due when you sell, regardless of whether he is involved in the sale. If he is "sole agent" and you find a buyer without ANY input from him, no fees are due. If you are part-exing, the buyer won't have found out you are up for sale from the agent's advertising so he'll struggle to make a claim under a sole agency agreement.

kingstreet

Explain to the builder. See if they will leave the PX on the market with this agent so the agent is more likely to release you from the contract.

scorgeous

thank you both for your replies. I have re read the contract and it says:

4. Sole Agency
You will be liable to pay remuneration to us in addition to any other costs or charges agreed if at any time unconditional contracts for the sale of the property are exchanged witha purchaser introduced by us during the period of our Sole Agency or with whom we have had negotiations about the property during the period or with a purchaser introduced by antoerh agent during that period or by any other means what so ever during the period of the sole agency agreement.

6. You agree to pay our fees of >>% of the sale price plus VAT and confirm that these fees are on a no sale no fee basis. You confirm that upon placing this property on the market with ourselves that you have currenlty no persons interested in purchasing or negotionating to buy it and that our fees become payable in full once contracts are exchanged after this agreement has been brought to an end and we introduced the buyer or had negotiations with the buyer during the period of this agreement.

So does that mean under section 4 we are stuffed and will need to pay fees?

Scully38

scorgeous wrote: »

thank you both for your replies. I have re read the contract and it says:

4. Sole Agency
You will be liable to pay remuneration to us in addition to any other costs or charges agreed if at any time unconditional contracts for the sale of the property are exchanged witha purchaser introduced by us during the period of our Sole Agency or with whom we have had negotiations about the property during the period or with a purchaser introduced by antoerh agent during that period or by any other means what so ever during the period of the sole agency agreement.

6. You agree to pay our fees of >>% of the sale price plus VAT and confirm that these fees are on a no sale no fee basis. You confirm that upon placing this property on the market with ourselves that you have currenlty no persons interested in purchasing or negotionating to buy it and that our fees become payable in full once contracts are exchanged after this agreement has been brought to an end and we introduced the buyer or had negotiations with the buyer during the period of this agreement.

So does that mean under section 4 we are stuffed and will need to pay fees?

If you've found a purchaser for your house on your own, without using the services of the estate agent, then you shouldn't have to pay their fees.

You should only pay fees if you sold your house to a buyer who bought your property via the EA, or someone saw your for sale sign, and then they bought your property privately and/or without the knowledge of the EA.

Basically it just means that any introductions by the EA (sign outside your house/ad in newspaper/flyer, word of mouth) which results in your house sale then you have to pay their fees. The timescale also means that the fee will remain in place for 14 weeks.

If you're part exchanging see if the builder is using a different EA or plans on using the same ones as you and is willing to just change over the agreement so you don't have to pay.

googler

Why don't you offer to buy your way out of the contract?

It's only been two weeks, why not offer the agent a suitable figure plus enough to buy a couple of shandies after work next Friday, and ask them to wind it up early?

saabay

Don't bother. The agent has had no negotiations with the builder as you have done that. Nothing is payable under 4 or 6. Additionally you were not in negotiations with the builder at the time that the contract with the agent was entered into. The agent might not like it but that's life for an EA. As far as they are concerned you are simply taking it off the market.

googler

saabay wrote: »

Don't bother. The agent has had no negotiations with the builder as you have done that. Nothing is payable under 4 or 6. Additionally you were not in negotiations with the builder at the time that the contract with the agent was entered into. The agent might not like it but that's life for an EA. As far as they are concerned you are simply taking it off the market.

Did you read No. 4?

"You will be liable to pay remuneration to us ... if at any time unconditional contracts for the sale of the property are exchanged with ... or with a purchaser introduced ... by any other means what so ever during the period of the sole agency agreement."

Kendall85

Hi There,

It really depends on the contract is it Sole Selling Rights or Sole Agency?

Normally agents will put clauses in their contracts for Part Exchanging leaving them entitled to commission, in my previous experience personally and for other companys (Bar one) there hasnt been any chasing of fees due.

saabay

googler wrote: »

Did you read No. 4?

"You will be liable to pay remuneration to us ... if at any time unconditional contracts for the sale of the property are exchanged with ... or with a purchaser introduced ... by any other means what so ever during the period of the sole agency agreement."

You can sell your property to whomever you wish. You have employed an agent to sell it but, they haven't as yet. You have found a buyer yourself. You have sold it - your agent has not. Whatever their contract states, it is unlikely to be held up in court. "By any other means what so ever" is hardly going to be held as a reasonable contractual term.

However, maybe if you don't want to pee them off too much, suggest that the builder carries on the marketing as suggested by a previous poster. It's up to the builder.

From experience EAs think that they can write anything in a contract and it is enforceable no matter whether it is fair, binding, or otherwise - so I would, perhaps, discuss with them this possibility of part exchanging with another party so as to see what their initial reaction is. It may be that they just accept it without fuss.

scorgeous

saabay wrote: »

You can sell your property to whomever you wish. You have employed an agent to sell it but, they haven't as yet. You have found a buyer yourself. You have sold it - your agent has not. Whatever their contract states, it is unlikely to be held up in court. "By any other means what so ever" is hardly going to be held as a reasonable contractual term.

However, maybe if you don't want to pee them off too much, suggest that the builder carries on the marketing as suggested by a previous poster. It's up to the builder.

From experience EAs think that they can write anything in a contract and it is enforceable no matter whether it is fair, binding, or otherwise - so I would, perhaps, discuss with them this possibility of part exchanging with another party so as to see what their initial reaction is. It may be that they just accept it without fuss.

Many thanks for everyone's helpful advice. The estate agent rang my husband the other day and told him that he would not be filling in the part exchange valuation request form for the builder as they dont make any money on it, and that also we will be liable for their estate agents fees if we part exchange. He also told the builders that were more than likely going to get an offer in before the end of the weekend, so the builders are hesitant to do it. It is now Tuesday and we have not had an offer. :( Darn those estate agents