Estate agent fees? are we getting ripped off?

AceCobra

Hello all,

We put our house on the market in January this year. We decided a few weeks ago we'd take it off, wait until we are married and resell next year. All seemed well until we got a bill from the estate agents on Friday.

“With reference yo the above named property; we acknowledge your instructions to withdraw your property effective 27 February 2007.

We now enclosed our advertising fee of £150.00 as agreed in our Terms Of Business.

Please make payment within 14 days.

Should you have any queries regarding this matter, please do not hesitate to contact the office on”

When we originally rang round for quotes from estate agents the fee was agreed for .5% on successful completion. Being my first sale I hadn't realised there would be an advertising fee but the agent explained the various options when the house was valued. He left the terms of business with us and asked us to drop them round when we had an appointed solicitor and selected which advertising options we wanted, these included online and news letter options.
The signage, photos, brochures etc where all to be part of the professional fee.
The agent also said they could not put it online/in the paper before we had dropped the forms round.

To cut a long story short we never dropped the forms round as we decided we didn't need to advertise online/paper. This was due to there being 2 other properties for sale in the street and we where getting loads of calls from the agent, I assume due to people seeing the sign.

Having had this bill and inquiring by phone to the agent what the charges where for as we didn't select any advertising options they seemed miffed and said they'd call us back. A few hours later they rang and said they'd mail a full breakdown of charges.

I've taken a picture of the terms of business, based on these should we have to pay anything? I think they are trying to pull a fast one.

Advice welcome.

Martin.

http://img246.imageshack.us/my.php?image=terms1hn4.jpg
http://img72.imageshack.us/my.php?image=terms2cv5.jpg
http://img224.imageshack.us/my.php?image=terms3zb1.jpg

maninthestreet

If you didn't sign any contract with the EA, he's not entitled to anything.
Ask the EA for a copy of the contract with your signature on it.

AceCobra

Cheers.

If we had signed the contract would we be liable for anything? I don't see what fees they could be talking about tbh. I'm worried they'll say they put it in the news letter or the like.

Martin.

vodkagirl001

AceCobra wrote: »

Cheers.

If we had signed the contract would we be liable for anything? I don't see what fees they could be talking about tbh. I'm worried they'll say they put it in the news letter or the like.

Martin.

If you signed a contract saying the you would pay £150.00 if you take it off the market with them, then yes you will be liable. I would get a copy of the contract with them and read the wording very carefully

Bossyboots

Sorry but that is not right. You allowed them to keep a board on your property so you have accepted you have a contract with them.

A contract doesn't have to be written to be enforceable. It can be implied or verbal.

In this case, you have allowed them to fulfill a contract term and thus it will be implied you accepted the contract terms.

That said, I cannot see that your contract contains any provision for you to pay for advertising if the matter does not proceed to exchange.

AceCobra

Guys,

Maybe I didn't explain myself very well.
I didn't sign the contract, I have it here beside me.... However. I'm not interested in using the "I didn't sign anything" excuse to get out of paying fees. If I would have been liable for these fees if I signed the contract then I will pay them, its the honest thing to do. I also plan to remarket the house (all being well) with the same estate agent next year as their prices where better than the other local agents.

My question is, based terms of business they supplied, could there be anything I am viable for? Unless I'm missing something my understanding was the only thing we would have to pay (if the house sold) was the .5% as we didn't select any additional advertising options. As the house was not sold I don't see that I should have to pay anything? There is mention of the signage etc being included in their professional fee so I don't see what advertising fee they could be talking about?

Thanks in advance.

Martin.

Tiger_greeneyes

I'm not sure if you're liable for any payments but my experience may help you...

I was in the same position a while back, my ex husband was being a nightmare about signing things etc so I asked the estate agent to put the sale 'on hold' for a while until my divorce was finalised. I didn't have to pay them anything, and I eventually sold through them anyway. It was on hold for about eight months in the end and they were fine about it.

ukdickie31

We now enclosed our advertising fee of £150.00 as agreed in our Terms Of Business

and on the first image - bottom line....

"No all such advertising will be carried out without prior written approval by the vendor"

I wonder, when you ask them for a copy of your written instructions.. will they give you any ?

Of course not !

I wouldn't pay !

AceCobra

Thanks guys,

I'm fairly certain I'm not viable for anything now but i'll see what the breakdown entails when it arrives.

Martin.

courtjester

It's normal for estate agents contracts to include reference to disbursements such as newspaper advertising being payable separately from the commission - it is not dependent on the sale and any such expenses would be payable (if covered by the contract terms) even if you don't sell or withdraw the property.

Your contract does seem to cover such expenses as an extra, so notwithstanding the questions of whether you signed or not (which you explained) the contract wording definitely includes mention of this.

'Advertising' rarely if ever includes the cost of erecting the agents sign (which advertises them as well as you), so this seems to be a red herring. The contract shows the for sale board as part of their service, with the extras being specified as "newspaper advertising etc.", so I think it is clear they are talking about additional costs they have incurred on your behalf, not the normal things you expect to be included in their fee.

I would think the key is whether the agent actually incurred costs to advertise your property in the newspaper - ask for details of the publication dates and costs. If they provide this, you may well have to pay the £150 you appear to have 'agreed' verbally, if not in writing.

Of course, it could just be that the agent disgruntled at you pulling out is merely trying to claw back some funds by invoking an expense they haven't incurred.

AceCobra

courtjester wrote: »

It's normal for estate agents contracts to include reference to disbursements such as newspaper advertising being payable separately from the commission - it is not dependent on the sale and any such expenses would be payable (if covered by the contract terms) even if you don't sell or withdraw the property.

Your contract does seem to cover such expenses as an extra, so notwithstanding the questions of whether you signed or not (which you explained) the contract wording definitely includes mention of this.

'Advertising' rarely if ever includes the cost of erecting the agents sign (which advertises them as well as you), so this seems to be a red herring. The contract shows the for sale board as part of their service, with the extras being specified as "newspaper advertising etc.", so I think it is clear they are talking about additional costs they have incurred on your behalf, not the normal things you expect to be included in their fee.

I would think the key is whether the agent actually incurred costs to advertise your property in the newspaper - ask for details of the publication dates and costs. If they provide this, you may well have to pay the £150 you appear to have 'agreed' verbally, if not in writing.

Of course, it could just be that the agent disgruntled at you pulling out is merely trying to claw back some funds by invoking an expense they haven't incurred.

Many thanks, super reply.

On that basis the property certainly wasn't advertised in the property news website or paper so it looks like I'm ok. In any case I in no way agreed to either and infact the agent said he couldn't advertise in propertynews until I had signed the forms and dropped them round.

I agree they may be trying to claw money back, when I rang asking about the advertising fee as we didn't select any chargeable advertising options the lady didn't have an anwser for me. When she rang back she said they'd mail a full breakdown but didn't go into any futher detail.

Thanks again.

Martin.