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Letting Agents Contracts
dondonsinspain
Posts: 36 Forumite
Hi, I am in the process of letting my house through an agent. I am about to sign the contract with the agent and have noticed the clause below in the agreement with them; can anyone tell me is this legal? I'm loath to sign it with this in mind?
2.1 In the event that a sale of the Property should be agreed with an actual or prospective tenant (or any associated party) introduced by the Agent, or a Tenant who had been renting within the previous six months, leading to an exchange of contracts, the Agent will then be entitled to commission at the rate of 1.5% of the sale price, to include any additional sum agreed for carpets, curtains, fixtures, fittings, furniture or equipment included in the sale. The fee is payable upon completion whether or not negotiations have been carried out by the Agent.
2.1 In the event that a sale of the Property should be agreed with an actual or prospective tenant (or any associated party) introduced by the Agent, or a Tenant who had been renting within the previous six months, leading to an exchange of contracts, the Agent will then be entitled to commission at the rate of 1.5% of the sale price, to include any additional sum agreed for carpets, curtains, fixtures, fittings, furniture or equipment included in the sale. The fee is payable upon completion whether or not negotiations have been carried out by the Agent.
:whistle:
dondonsinspain its sunny so SMILE!
dondonsinspain its sunny so SMILE!
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Comments
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If you don't like it negotiate it out.
My contract had a similar clause and I negotiated the figure down to 0.5%.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I would renegotiate this figure to less than 1%!
People use EAs to sell their houses, and it's the EAs job to find a buyer, and then they usually charge about 1% for their service. If you're letting your property, then decide to sell it, and your tenant wants to buy it, then you wouldn't need an EA, just a solicitor, so the EA wouldn't get their fee! This is their way of saying that they found you the buyer, therefore they should get a fee for it!!Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
The term is a common one in many letting agency agreements.
However it is not legally enforeable and the agent would probably not have much joy in pursuing you for the fee.
At the end of the day, you are instruction to the agent tp find you a tenant to rent the property and if needed the management of the property. You are not instructing them to sell the property, hence no liability for paying them a fee should the tenant decide to buy the property.2012 Target...
10 half marathons in a year. First one, New Years day!0 -
thanks for all the answers, I have spoken to my agent who has told me just to cross out this clause and sign and return the contract to them. I'm a bit worried that this might not be 'legal'?:whistle:
dondonsinspain its sunny so SMILE!0
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