Estate agency contract - am I liable

InsureGuru

Hi, can anyone help? I had a sole agency agreement with an estate agent, that I terminated in December and rented the property instead. While we were selling, a friend of a friend introduced us to a couple that wanted to buy our house. We told them to go through the estate agent. However the sale never occurred We have now terminated the sole agency agreement and 6 months on they want to buy our house to complete at the end of the year when the current tenants in the property move out. I am likely to be liable for the commission to the estate agent even though the agreement has now been terminated (bearing in mind we introduced the buyer to the agent as well) thanks IG

eddddy

Hi InsureGuru

Check your contract - reputable EA's contracts will say that your liability for fees ends 6 months after termination of the sole agency agreement.

Also, if the agent is a member of The Property Ombudsman or National Association of Estate Agents, they must waive their right to fees after six months.

I believe that theoretically, an EA that's not a member of TPO or NAEA can claim commission for many years after the end of the sole agency. I don't know if it's ever been tested in court.

(For future reference, if an EA's contract does not explicitly state a 6 month limit, refuse to sign it until they add that clause. I always do this.)