New estate agent and old estate agent who gets the fee?

pippin06

Thanks. I quickly read the part you referred to in your first post and it certainly seems the way you put it. I will read the rest later when I have time to take it in properly. My hope is that our new agents will find us another buyer so this won't be an issue but to be forewarned etc....


Thank you for the info


Although as it says it in the original written contract I'm not sure about the need for them to put it in writing again. Its this term "introduce" that needs clarifying

pmlindyloo

jjlandlord wrote: »

Perhaps he should have, though I don't see why it would have been an obligation (Have you got a reference?), and why failure to do so would have rendered the clause void.

Link/reference in post 13.

jjlandlord

pmlindyloo wrote: »

Link/reference in post 13.

Thanks. I quote:

At the time of the termination of the instruction, you must explain clearly in writing any continuing liability the client may have to pay you a commission fee and any circumstances in which he may otherwise have to pay more than one commission fee.

That's just a best practice.

If agent didn't do that, the clause is still valid and enforceable.

Customer (OP) could complain to the Property Ombudsman that agent breached that clause of the code of practice, but it seems very minor and I'm guessing that only result would be a letter to the agent to remind him what the code of practice says.

pmlindyloo

jjlandlord wrote: »

Thanks. I quote:


That's just a best practice.

If agent didn't do that, the clause is still valid and enforceable.

Customer (OP) could complain to the Property Ombudsman that agent breached that clause of the code of practice, but it seems very minor and I'm guessing that only result would be a letter to the agent to remind him what the code of practice says.

Adviceguide says:

QUOTE
All estate agents must belong to a complaints redress scheme approved by the Office of Fair Trading (OFT). So far the OFT has approved two schemes - a redress scheme run by the Property Ombudsman and a scheme run by the Ombudsman Services: Property. If you have a complaint about an estate agent when you buy or sell property, you will be able to refer the complaint to the Property Ombudsman or the Ombudsman Services: Property. Estate agents that refuse to join a scheme can be fined. QUOTE

If the estate agents are members of The Property Ombudsman then this not a case of best practice. It is mandatory.

Not clever enough to do multi links but if you go to the link on page 13 it is the first sentence.

jjlandlord

pmlindyloo wrote: »

If the estate agents are members of The Property Ombudsman then this not a case of best practice. It is mandatory.

Yes, but that doesn't change anything to what I wrote in post #24, so won't really help OP.

googler

pippin06 wrote: »

I have read the contract - it says they get the fee if we complete with someone they introduced but it doesn't give a full explanation of the word "introduced". The whole contract covers one side of A4 in big writing!! I understand (from a very lay person point of view) there is a difference between introducing someone to a house i.e. a viewing, and introducing someone to a sale.

There was a legal case which may have set a precedent on this, involving one of the big London firms who tried to claim commission as your agent X would, but were denied by the (appeal court) judge.

http://www.theratandmouse.co.uk/weblog/archives/2008/04/foxtons_lose_co.html

http://www.growerfreeman.co.uk/wp-content/uploads/2010/04/ESTATE-AGENTS-FEES-WHO-PAYS1.pdf

http://www.solicitorsjournal.com/news/family/children/no-future-estate-agents-battling-over-introductions

googler

pippin06 wrote: »

We were on with estate agent X who managed to get an offer which we did not accept from Mr A. We said we needed more and he said he couldn't give more and X failed to get a higher offer from Mr A.

Since then we changed to agent Y who whilst speaking with Mr A about other properties found out the story about the low offer on ours and after many negotiations manages to get Mr A to increase his offer to an amount we are happy with.

etc etc

My question is what do we do?

You get Mr A to submit his offer to Agent Y, since Y is the only agent with a valid selling contract for your house. Agent X can try to appeal for 'their' commission as much as they like, but at the end of the day, assuming you terminated your contract with them, they have no valid basis under which they can sell or market your house, unless you sign another contract with them.

As you can see from my post above, and from another poster quoting their legal source, any appeal by agent X for their commission seems likely to flounder unless they can provide some evidence that they introduced Mr A to THE SALE, not to the property, and/or they can prove some effective cause for Mr A to offer.

jjlandlord

It's less clear cut that in the legal case quoted, as Mr A had submitted his first offer to agent X.
To me that's an argument in favour of agent X having introduced Mr A.

This could escalate to a costly and stressing legal battle.

At the end of the day the 2 most sensible options would be:
- To negotiate with both agents to find an agreement on sharing the commission (even agreeing to pay a higher commission so that they are both happy with what they get),
- Or to find an alternative buyer altogether.

pippin06

Thanks again everyone

I will not be paying anyone a higher commission rate and have no idea why you would suggest that would be an answer.

The second option you suggest is clearly the easiest all round since there's no come back from agent X and all will run smoothly (ha ha as if that ever happens in these cases) however this strikes me as odd since I want to sell my house and there's a buyer who wants to buy it so why can't I sell to him???

googler

jjlandlord wrote: »

It's less clear cut that in the legal case quoted, as Mr A had submitted his first offer to agent X.
To me that's an argument in favour of agent X having introduced Mr A.

But that offer floundered, so doesn't that suggest Agent X failed to introduce the buyer to the sale, as opposed to the property?