Buying my dad's house after estate agent hasn't sold it?

TraceyJ_2

I'm looking to buy my dad's house as he hasn't sold it after having it on the market for 6 months and wants to move closer to us fairly quickly. His agreement is with Countrywide and doesn't seem to specify whether it's a sole agency but it does state "the agent will be the only agent for the sale of the Property during the Agency Period (the Countrywide Agency)". I'm trying to find out if the commission fee would still be payable if he now cancels the contract and I buy the property.

Does anyone have any advice please?

Thank you.

theartfullodger

Dad needs to read the terms of his agreement with the agent: I can't read it from here so sorry, can't advise.

If you/he think the terms are unfair (eg, daft example, he is liable to pay 3% of sale price to them for 2 years after cancellation) he could ignore that term & see if they sue him for it. No way of knowing what they will do.

It is likely to be dependent on how & when he cancels & what date (afterwards..) you start purchase process..

That it hasn;t sold in 6 months indicates something (price, state of property, location..) is "wrong" so I'd be cautious...

Never do business with relatives, small children or animals...

TraceyJ_2

Thanks, there's not much moving in the area so not overly worried about why it hasn't sold. One sale fell through so 2 months was lost during that time too.

We're trying to make sense of the agreement - it's not very clear!

G_M

TraceyJ wrote: »

... "the agent will be the only agent for the sale of the Property during the Agency Period (the Countrywide Agency)".

Thank you.

If that is the only relevant wording, then since you (buyer) are not being introduced by the agent no commission should be payable.

But I'm surprised it does not specify more clearly.

The other option of course is for your dad to give notice as per the contract to end the contract. I can't believe the initial 'lock in' period can be more than 6 months!

TraceyJ_2

Thanks G_M, I was in a rush to post so probably haven't worded all this very well.

I was just looking for a reference to sole agency etc after reading advice about this. There is some other wording. I will type up as soon as I'm home.

TraceyJ_2

Not sure if this link will work? It's section 2 I'm particularly interested in making sense of if anyone can help?

Many thanks everyone, I'm very grateful.

https://www.dropbox.com/s/ww362ksak4p8fjk/photo.JPG?dl=0

booksurr

TraceyJ wrote: »

Not sure if this link will work? It's section 2 I'm particularly interested in making sense of if anyone can help?

Many thanks everyone, I'm very grateful.

https://www.dropbox.com/s/ww362ksak4p8fjk/photo.JPG?dl=0

it seems pretty clear cut ... 2.2 means you have to wait 24 months after the end of the (sole agency) contract period to avoid having to pay commission to Countrywide "in all other circumstances" provided that you have actually terminated the contract as described in 2.3 and therefore not let it run on

TraceyJ_2

Thank you booksurr, much appreciated.

dauphin

booksurr wrote: »

it seems pretty clear cut ... 2.2 means you have to wait 24 months after the end of the (sole agency) contract period to avoid having to pay commission to Countrywide "in all other circumstances" provided that you have actually terminated the contract as described in 2.3 and therefore not let it run on

This advice is quite wrong. The words quoted by Booksurr only apply where your Dad sells to someone originally introduced by Countrywide (which presumably does not include you). Those words are just EXCEPTIONS to the charging rules set out earlier in 2.2. If Booksurr were right, you effectively couldn't use another agent for 6 months after terminating Countrywide's agency agreement because you would still have to pay commission to Countrywide on a sale to a purchaser introduced by the new agent. Complete nonsense! If your Dad validly terminates Countrywide's agency after the initial Agency Period has expired, and he then sells to you, there is no commission payable to Countrywide. If in doubt, your Dad will presumably have a solicitor lined up to handle the sale, so just ask him/her.

TraceyJ_2

Thank you dauphin, the estate agent has confirmed that fees would not be payable. I'm very grateful for your advice.