Will estate agent find out if we buy privately?

jonnysaving

Me and my wife are first time buyers and recently found a house we really like through an estate agent. We put an offer in but this was rejected and we were told there was a much higher offer. We left it for a week and phoned back to see if the other offer had been accepted. At this point the estate agent said the offer hadn't been accepted and that the vendors had taken it off the market (It had been on the market for 5 months with that agent).

We like the house so put a letter through the door saying we were still very interested and if they still wanted to sell we were prepared to increase our offer and proceed privately (with the view that they would be willing to accept below the asking price as they were no longer paying estate agent fees). They have been in contact and are interested in the offer.

We are now worried that if we agree a price with them and go through surveys and conveyancy,the estate agent might demand their fees (as they introduced us to the house, although they didn't make the sale) and put the vendors off selling to us which will cost us money.

Are the estate agents entitled to the commission in this case? Will they find out in the future if we buy privately and who will be liable for the fees?

Any advice would be brilliant.

chris_m

IMO, yes the estate agent would be entitled to the commission since they did make the original introduction and, yes, they probably will be able to find out. The vendor would be liable, it is them that has/had a contract with the agent.

SusieT

The estate agents will have a list of people that they introduced and will eventually know from the land registry that the house has been sold. Depending on the contract if your offer is accepted within a certain timeframe after they have stopped using the agent then comission would be payable by the seller. They need to read the contract that they signed carefully.

Mickygg

You will need to ask the vendors what t&cs they signed up to. I bet you'll find the EA will be entitled to their cut especially as you showed interest through the EA.

Fire_Fox

Nothing will happen until after completion, then the estate agents will chase the vendors not you.

jonnysaving

Thanks for the quick replies. Having done a little research we thought that might be the case.

We'll have a chat with the vendors and see what they've signed. We'll have to see how it goes I guess.

Thanks again.

G_M

It is not your problem. It is entirely a matter between the seller and their estate agent.

But yes, in all proboability the agent will find out. Agents monitor local sales and the names of buyers are availabe from the Land Registry. If the EA 'introduced' you to the seller, leading to a sale, then depending on the contract it is likely the agent can demand their fee.

BobQ

Well its not really your problem as buyers but the seller is still legally obliged to pay commission. Even if they terminate their contract they are probably obliged to pay commission if the buyer was introduced by them and this obligation willl probably apply to any sale in the next several months.

Whether the seller will get found out depends if the agent bothers to check. I suspect its worth their while to check a fair proportion of missed sales, it costs £4 and they could make many times that in commission.

Ivana_Tinkle

Why would you bring it up with the seller? Their arrangements with their agent are nothing to do with you - you'd just be introducing a potential barrier to the sale.

littlesparkles

My EA contract specified that I would be liable for fees if I sold it to someone they introduced within 6 months of cancelling my contract with the agent.

BobQ

Ivana_Tinkle wrote: »

Why would you bring it up with the seller? Their arrangements with their agent are nothing to do with you - you'd just be introducing a potential barrier to the sale.

At a guess I would say the answer is that the OP is concerned that having paid his legal costs and a survey the seller will suddenly realise that he might not get away with it.