Private sale whilst having current auction contract with EA

pf412

Hi Folks

I wonder if somebody could help me to clarify the situation I might be in at the moment.

I've had my flat up for sale through the action with EA. Contract was signed over a year ago and after a few actions they never came back with the offers above the reserve. Since then we have had an occasional viewing until about 6 months ago when it went completely dead. We didn't mind as we weren't in need to sell as friend was renting it from us.

Couple of months ago I've met the landlord of another flat in the building and told him that I was selling my apartment and he was interested in buying it from me. We agreed the price and just exchanged the solicitor details.

When I came home today I saw a voice mail from EA asking to ring them back.

Stupidly i've never cancelled an auction contract but never signed the normal one which they've sent me 6 months ago.

I wonder if they've got a whiff of my private sale would i be responsible to pay them any commission (auction commission is £5-6k for example)? Sale was not a result of any of their activities and would they have any legal grounds to pursue me if i tell them to stick it?

Any thoughts on the above would be greatly appreciated.

Many thanks.

Yorkie1

It depends on the terms of your contract with the EA, which we cannot see ...

pf412

This what concerns me:

Terms of free entry: Terms of free marketing - No marketing charge
or sales fee is payable by the vendor providing a buyer’s premium is
collected by EA from the buyer. Should the vendor elect
to accept an offer leading to an exchange of contracts, without a buyer’s
Premium being paid by the purchaser, the vendor will become liable for a
fee of 5% (£5,000 minimum)+VAT upon exchange of contracts. You can
only sell for free under sole selling rights (detailed below). The reason
for this clause is that some vendors choose to accept an offer where the
buyer is unable or unwilling to pay a buyer’s premium. In this event EA reserve the right to recover marketing costs and agency
fees from the vendor. N.B. should you enter privately into a negotiation
with a buyer leading to an exchange of contracts you will be liable for
a fee you need not have paid. Leave it to us and you will pay no fee!
Sole Selling Rights - Sole Selling Rights are defined as: You will
be liable to pay remuneration to us, in addition to any other
costs of charges agreed, in each of the following circumstances:
• If you agree to the sale of the property in the period during which
we have sole selling rights, even if a purchaser was not found by
us but by another agent or by any other person, including yourself:
• If you agree to the sale of the property after expiry of the period
during which we have sole selling rights but to a purchaser
who was introduced to you during that period or with whom
we had negotiations about the property during that period.
• A purchaser may be introduced directly or indirectly as a
result of our activities. Whilst you may cancel instructions by
giving us 28 days notice in writing, we shall remain entitled to
commission where any eventual sale results from our previous
activities either directly or indirectly or introductions during the
period of our agency or any period whilst we are under notice.

Withdrawing from the auction: Should a seller decide to withdraw
their property from auction EA must be notified
in writing no less than 48 hours before the auction date. A fee of
£650+VAT will be payable to EA. Should a
seller wish to withdraw their property once a sale has been agreed
and the Buyer’s Premium has been collected from the applicant,
a fee of £1000+VAT will be payable to EA.

Termination: Should a lot remain unsold after the auction date, at the
discretion of EA, we reserve the right to: terminate this
agreement, or enter the property into the next auction, or continue
marketing the property for sale under auction terms and conditions.

I hope my post doesn't sound like i am trying to avoid paying EA for something they have done but rather avoid paying them for the work i did.

Cheers