Can we sell privately while within EA contract?

tortoiseshellcat

Hi I just wondered if anyone knows the answer to this please?

We have a maisonette to sell which has been on the market for about two months now.

This may not sound very long but i got the impression from the Ea that it would sell quickly and their average selling times for properties is 21 days!!!

We have reduced the asking price to try and appeal to more people, from guide price 180-200 to offers over 175000. This is a reasonable price for the area as we are in Surrey.

Our financial advisor has said he knows of a couple of investors who might be interested...I just want to know could we sell it to someone else privately while we are still within the contract with the estate agent or do I need to wait until that 12 week contract time has finished with them?

Cissi

Depends on what your contract says... Have you given them exclusive selling rights? If not then you'd be ok as long as they haven't introduced the buyer.

BTW most buyers will ignore the "offers over" bit and will still offer below. An investor is likely to make low offers as they won't be emotionally involved, so don't get your hopes up too high.

tortoiseshellcat

Yes they have sole agency. If someone offers lower we only have to say no . It is priced sensibly and has been reduced so we wouldn't accept less than 175,000 unless we do sell privately as would be saving ourselves about £3000+ on EA fees.

Other two bedroomed Flats/maisonettes in the same town are currently on the market for between £150,000 and £375,000.

tortoiseshellcat

Thanks guess probably best to wait four more weeks then when contract will end, I just wasn't entirely sure.

eddddy

Hi tortoiseshellcat

Check your contract, as it probably doesn't just automatically end. You probably have to give 4 weeks notice, or it will continue indefinitely.

Just to reinforce what theartfullodger says, if you find a buyer elsewhere, at the very least the EA will question you in detail, and probably argue that their fee is due.

For example, some sole agency agreements say that an "Introduction" means bringing the property to the attention of the buyer. So simply seeing the EA's sale board, or seeing the EA's ad on rightmove would count as an 'introduction' (even if they never have any contact with the EA).

Also, in your case, maybe the EA could argue that your mortgage advisor is acting as your agent by introducing prospective buyers. This would definitely mean you have to pay your EA fees.

So you would probably get a grilling about how an eventual buyer first found out about the property.

tortoiseshellcat

Thanks Eddddy I just checked my contract it says the sole agency will continue unless terminated by either party giving 14 days notice on expiry of the initial term or at some later date.

It also says "in the event that you sell the property privately during this period you agree to supply us with the name and address of the purchaser."

I did go into the branch and ask if I could sell it privately to someone via my financial adviser and the guy in the EA said that would be ok, he actually didn't seemed that bothered which was surprising!

If we did, and probably a small if, sell it to someone via financial advisor, it's only because when Applying for a mortgage in principle with him, he asked where the rest of my money was coming from and I told him we had a property to sell but hadn't sold yet. So investors he's talking about aren't people who have seen the property for sale on rightmove or anywhere else but could be told about a two bed flat for sale in the area (if that makes sense!)

tortoiseshellcat

It's just frustrating that been on the market for two months and had no offers yet when it is a saleable property and should be attractive to an investor as apparently should be able to get £950 a month rent as a commuter town.

Annisele

tortoiseshellcat wrote: »

I did go into the branch and ask if I could sell it privately to someone via my financial adviser and the guy in the EA said that would be ok, he actually didn't seemed that bothered which was surprising!

He's right, you *can* sell privately - you can sell to whoever you want. The question you're really asking is: if you do sell privately, is the EA still due a fee? That ought to be answered in the contract you've signed.

The EA will be quite happy if you do the legwork but they still get the fee!

tortoiseshellcat wrote: »

So investors he's talking about aren't people who have seen the property for sale on rightmove or anywhere else but could be told about a two bed flat for sale in the area (if that makes sense!)

Investors who don't look at Rightmove? Hmmm.

tortoiseshellcat

Annisele wrote: »

He's right, you *can* sell privately - you can sell to whoever you want. The question you're really asking is: if you do sell privately, is the EA still due a fee? That ought to be answered in the contract you've signed.

The EA will be quite happy if you do the legwork but they still get the fee!



Investors who don't look at Rightmove? Hmmm.

I knew I had worded that last bit incorrectly lol what I meant was that the f.a. Said he knew of a couple of investors who might be interested in a two bedroomed flat in the area. I haven't shown the f.a. My property on rightmove. The investors may well have seen it On Rightmove but that wouldn't be the reason they would be approached by my f.a. That probably still isn't worded how I mean it to be. :rotfl:

G_M

tortoiseshellcat wrote: »

Yes they have sole agency.

'Sole agency' may ormay not also include 'soleselling rights'.77

Do not rely on a casual conversation in the agents office. Check the contract you signed.

joaniel34

Can someone tell me how much notice I'd need to give my EA who I am on sole agency agreement with for 6 weeks to terminate contract and then sell through another agent once this has expired without any recourse from initial EA trying to claim fees.

Contract says either party need to put in writing termination of contract within 2 weeks of expiry date, will this ensure they won't attempt to sue me if I subsequently sell with another EA later down the line?

Thanks,