Changing Estate Agents contract

vodkagirl001

OK so if the following is the scenario - what would happen.

Currently with EA 1 but i'm giving them notice to end my contract with them. Once the contract has ended, I will be instructing a new EA, we will call them EA 2. Next step is I had a viewer who came to view twice under EA 1, then had problems getting a mortgage so was unable to put an offer in and said she would have to try and get a bigger deposit so would have to leave it for now. What happens if, once I have moved with EA 2 and say in 1 month, the viewer (who previously viewed when I was with EA 1) say wins 10k on a scratch card. She see's my property in the paper, now up with EA 2, and rings them to make a viewing (again) comes, views, and puts an offer in with EA 2, do EA 1 have any claim over fee's since they originally ''introduced'' the viewer?

*this scenario is for anyone who has previously viewed with EA 1 and then puts in offer when up with EA 2

silvercar

You ask EA 1 for a list of people that they have "introduced". You give this to EA 2 so they know the people they can't expect to gain a commission through.

The logical thing for a buyer would be to go back to the EA they viewed through. EA 1 then phones you, "I know you are now with EA 2, but I have a buyer who I introduced now in a position to proceed." You then can pursue this in the knowledge that EA 2 is aware that this buyer was an introduction from someone else.

courtjester

Be quite clear on the point:

Agent 1 is entitled to charge commission for the sale of your property to ANYONE who was introduced by them during the period of their sole agency. Read your contract as you will find that is what it says. That condition does not become invalid simply because the contract has come to an end, it is a continuing liability.

It is irrelevant that the sale may take place during the agency of agent 2.

Make sure you get the list as advised by silvercar and keep both agents informed of any buyers that might cross the line to protect yourself.

vodkagirl001

Ok thanks for your help guys.

I guess Ill have to get on to EA 1 for the contract anyway as after getting the book ouit, there is no contract in there, just a letter stating there fee and that they were no acting on my behalf!

Richard_Webster

Most sole agency agreements these days allow an agent to claim commission if he introduced the buyer or had negotiations with him.

So EA2 can try to claim commission on that basis. So the list from EA1 is important - you need a specific term of the agreement with EA2 that he is not entitled to commission if he has negotiations with any of the people on the list. Also get EA1 to confirm that the list he supplies is a definitive list and that he will not maintain that he introduced anyone else - just in case he tries to say this later about someone you genuinely think is fresh via EA2.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.

RHemmings

Richard_Webster wrote:

So EA2 can try to claim commission on that basis. So the list from EA1 is important - you need a specific term of the agreement with EA2 that he is not entitled to commission if he has negotiations with any of the people on the list. Also get EA1 to confirm that the list he supplies is a definitive list and that he will not maintain that he introduced anyone else - just in case he tries to say this later about someone you genuinely think is fresh via EA2.

What happens if the EA refuses to supply such a list?

Richard_Webster

I suppose the best you can do is get them to put in writing that they wil not do so. Then if they claim later you can at least say that you tried to find out the people who could be the subject of a possible claim.

You may know the names of people who have been shown round by EA1 - you can give those details to EA2 - they may well be on his mailing list anyway.

When EA2 sends people round try and find out how they found your proeprty - if they mention EA1 then you have a warning sign.

You can refuse to exchange contracts with anyone who is going to cause you a problem and suggest that the agents get together to sort it out - if they agree a deal and both tell you this in writing you go ahead and they get paid. If not, nobody gets paid and, you have to start again - it's a game of poker...

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.

RHemmings

Richard_Webster wrote:

I suppose the best you can do is get them to put in writing that they wil not do so. Then if they claim later you can at least say that you tried to find out the people who could be the subject of a possible claim.

I'm sure that I saw a thread here where the agent was asked for a list, but just didn't supply one. So there was no evidence that they said that they didn't.

As far as I can see, for what that's worth, if any property has been with multiple agents, it would be necessary to ask anybody making an offer which agent introduced them, and sort out the agent feeding frenzy before exchanging contracts.

Richard_Webster

I think that's the most important point:

sort out the agent feeding frenzy before exchanging contracts.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.

courtjester

Or sell privately and forget the agents altogether....

vodkagirl001

well I dropped the EA's an email today as no chance to call so far, and I was just basically asking them what our notice period was so I could put it in writing to them etc and they emailed back and advied their notice period was 2 weeks and they would accept the email as start of notice and cease selling our property on 5th March. I have replied stating I will follow up with a letter to them (just to cover ourselves - although I will prit off all email corres as well) and also asked them about providing a list of people they have introduced so we shall see what they say!!

Now the hunt is on to find a new EA, wether to go with a big known firm or a local one.

God this is hard work!