Sole Agent Agreement and Part Exchange

BlackCat^

Hoping someone can clear up something that's on my mind...


We placed our house on the market last summer but unfortunately never attracted many viewings and decided the only way we were going to manage a move was by going for a Part-Exchange.

Now we have agreed a part-ex deal and the builders have instructed us to remove our property from the market with our current agent so that they can place the house up for sale with their preferred agent.

What is concerning me is with our previous agent there was a clause where they can seek their commission if someone they introduced to our property goes on to buy it with another agent.

So basically does this apply with part-exchanging as effectively I am "selling" my house to the builder and they are the ones who are reselling it and decides who buys it?

If I wasn't going down the part-ex route and just fancied my luck with trying to see via another agent I would not be accepting an offer from someone introduced by the first agent inin order to avoid this extra commission fee. But with the builder being the ones who are effectivly selling the property am I still obliged to pay this commission fee even though my hands are tied as to who they sell the property to?

googler

I don't think they can claim a fee from you if the house sells to someone who viewed it when you were selling it at a time when it has been subsequently instructed for sale by a different owner, which is what's happening here.

However, what does your contract say?

BlackCat^

The contact just states that if we withdraw the house from the market with them that under some estate agents code of conduct we are liable to pay them commission if someone goes on to buy the house who they previously introduced to the property up to 6 months from the withdraw from the market.

But surely we are effectively selling the house to the builders of the new home and the future sale is a new transaction thus we are now liable to pay a fee to the original agent?

hazyjo

How long 'til the house you're buying will be built?

I would give notice to your EA and if they ask what your plans are, say you're considering buying a new build and leave it at that. If they mention commission, maybe consider coming to some arrangement now.

Surely it's going to be several months yet anyway until you're in? I would be tempted to keep a bit of spare cash just in case they come knocking in six months' time.

Jx

googler

BlackCat^ wrote: »

The contact just states that if we withdraw the house from the market with them that under some estate agents code of conduct we are liable to pay them commission if someone goes on to buy the house who they previously introduced to the property up to 6 months from the withdraw from the market.

Only enforceable if you sell it to the buyer they introduced. If you sell it to someone else, whether a third party regular buyer, or a builder/developer, and they then sell it to the buyer who was introduced by the agency, you're out of the frame.

But surely we are effectively selling the house to the builders of the new home and the future sale is a new transaction thus we are now liable to pay a fee to the original agent?

You're not liable

BlackCat^

googler wrote: »

You're not liable

Sorry yeah, meant not. Typo there.

Think I will run this one past the solicitor before exchanging. The way I am thinking is that I am selling to the builders who are in turn reselling which is none of mine or the original agents business.

After all, the big draw to part-exchange is "no estate agents fees to pay".

googler

Section 3q of this code of practice refers; however the unwritten presumption is that you, the owner, are selling to the buyer previously introduced by the agent, whereas in your situation, you're not. Someone else (the builder/developer) is, or may be.

If the builder sells to someone new, someone who hasn't been through your current agent, the whole point is moot.

http://www.tpos.co.uk/downloads/TPOE27-1%20Code%20of%20Practice%20for%20Residential%20Estate%20Agents%20(Effective%20from%201%20August%202011).PDF