Selling Q. Do I have to pay agent a fee if...

Emgee71

Hi everyone - question for any estate agents reading this I guess. I have recently put my house on the market with a local estate agent on a sole agency basis. It has just gone online about 2 or 3 days ago and the first viewings will be this weekend.

The question I have concerns a potential buyer who I have unearthed myself simply through having a chat with a neighbour. I mentioned to her that the house was for sale (there is no board up outside) and she said her parents might be interested. Anyway - it turns out they are interested and in a good buying position.

Given that they were not introduced by the agent, if I proceeded to an offer then what is the position regards fees to the agent?

Genuine question and thankful in advance for informed replies!

Many thanks, M

nubbins

Read the small print in your contract but I expect it will say something along the lines of even if you find a buyer not intoduced by the EA you are still liable for the fees. You can take it off the market and risk it but if they find out you will be liable and I have read about EA's coming after the seller for their fees. Or you can let the period stated in the contract run out and then sell it to them.

rosie383

I am pretty certain most contracts are sole selling rights. As already said, check the small print. If your lock in period isn't too long could you wait til it's over and then sell to them unless you get a better offer in the meantime taking account of the fees you would have to pay?
My friend had exactly the same situation but had to pay the fees as it was clear in the small print and she couldn't wait until she was free of them.

G_M

Multi-agency contract? Clearly not.

Sole-agency contract? Perhaps.

Sole-selling rights contract? Perhaps.

Always read contracts before you sign them.

freezspirit

could there be a cooling off period which you could cancel the estate agent for whatever reason? again read your contact as might have a cancelation fee.

Missus_Hyde

This is an interesting thread as my sister and I are intending to put our late mother's house on the market end of March/beginning of April (we're in the process of spucing it up ready for sale.)

I had a visit from a possible buyer who'd heard through the local grapevine that the house could be for sale and gave me her details, asking me to let her know when it went on the market. We are considering getting it valued by 2 or 3 local estate agents once it's ready and then approaching her prior to instructing one of them, to see if she's still interested. Although we would save the EA's fees, I believe she does have a house to sell, so she could have a chain with Uncle Tom Cobbley and all behind her!!

On the other hand, if we instruct an EA we would have to pay their commission,but they would hopefully let us know of other offers with perhaps buyers in a better position to proceed......many a slip 'twixt the cup and the lip!!;)

eddddy

Emgee71 wrote: »

...I have recently put my house on the market with a local estate agent on a sole agency basis...

The OFT has very clear guidelines on how EAs should use terms like 'sole agency':

Terms of business
If you intend to use any of the following phrases as part of your terms of business you must explain in writing what they mean using the definitions given on pages 17-18 and give them the required prominence:
- sole selling rights
- sole agency
- ready, willing and able purchaser.

...
...

‘Sole agency’
You will be liable to pay remuneration to us, in addition to any other costs or charges agreed, if at any time [unconditional contracts for the sale of theproperty are exchanged]**:

- with a purchaser introduced by us during the period of our sole agency or

- with whom we had negotiations about the property during that period, or

- with a purchaser introduced by another agent during that period.

Source: The estate agency guide. What you need to know if you are engaged in estate agency work

Link : http://www.cimaglobal.com/Documents/ImportedDocuments/The_estate_agency_guide_jan06.pdf

So based on the OFT guidelines, you should not have to pay a fee. But not all EAs seem to abide by those guidelines!

So you may have a fight!

eddddy

Missus_Hyde wrote: »

...
I had a visit from a possible buyer who'd heard through the local grapevine that the house could be for sale and gave me her details, asking me to let her know when it went on the market...

This is very clear cut - assuming you only sign a standard 'sole agency' agreement.

You prospective buyer was introduced before you instructed any EA. So no fee should be payable.

But explain the situation to the EA, and get their confirmation of that.

kinger101

eddddy wrote: »

This is very clear cut - assuming you only sign a standard 'sole agency' agreement.

You prospective buyer was introduced before you instructed any EA. So no fee should be payable.


where did you read that?


But explain the situation to the EA, and get their confirmation of that.

Better still, read the contract, and if you need confirmation, speak to your solicitor. I wouldn't trust a word out of the estate agent's mouth.

eddddy

kinger101 wrote: »

where did you read that?

The OFT The estate agency guide - see post #7

martin.cat

I think you will find that you have to pay unless there is a coolling of period for cancelling. When we sold ours we had a potential buyer and agent gave us option of naming on contract.