Estate agent - 14 day right to cancel.

MintyBubbles

Hi Everyone,

10 days ago I instructed an estate agent. 3 days ago I exercised my right to cancel under the 14-day cooling off period. I have now received a letter stating that they have a right to commision if i sell to a buyer they introduced.

Now setting aside the issue of introductions as they have not introduced anyone, it has always been my understanding that if you void a contract during a 14 day cooling off period it is as if that contract never existed.
Is that correct??

MB

Guest101

MintyBubbles wrote: »

Hi Everyone,

10 days ago I instructed an estate agent. 3 days ago I exercised my right to cancel under the 14-day cooling off period. I have now received a letter stating that they have a right to commision if i sell to a buyer they introduced.

Now setting aside the issue of introductions as they have not introduced anyone, it has always been my understanding that if you void a contract during a 14 day cooling off period it is as if that contract never existed.
Is that correct??

MB

It depends.

If you cancel under distance selling, then yes. The contract is given a consideration period, and if you cancel it is like you never accepted.
- however if they started work & expressly explained that your right to cancel would no longer apply, then you cannot rely on this.

If you cancelled under a contractual clause. e.g. the contract says you can cancel upto 14 days, then it is cancelled subject to the conditions in the contract. I.E. it was a valid contract.

MintyBubbles

Thank you. Well yes they did start work immediately, but at no point explained verbally or in writing that this would void my right to cancel....

I would have thought that the cancellation period was in accordance with the law, not the particularities of the contact....

MintyBubbles

Just found this:

The regulations also specifically prevent agents from marketing a property within the 14-day cooling off period, unless they obtain a specific written instruction from the client. The risks of not obtaining this consent appear at first glance to be minimal. However, agents should be clear that if you do find a buyer or a tenant within the cooling off period, the client will be legally entitled to cancel the contract and have no liability to pay your fee or any part of it.

Would have included link but:Sorry as a new user you are not allowed to post with links

Guest101

MintyBubbles wrote: »

Just found this:

The regulations also specifically prevent agents from marketing a property within the 14-day cooling off period, unless they obtain a specific written instruction from the client. The risks of not obtaining this consent appear at first glance to be minimal. However, agents should be clear that if you do find a buyer or a tenant within the cooling off period, the client will be legally entitled to cancel the contract and have no liability to pay your fee or any part of it.

Would have included link but:Sorry as a new user you are not allowed to post with links

Which law does that relate to? - im unfamiliar with it.

Please remember that distance selling doesnt apply if you signed in their offices for example. - so not always applicable.

In law (under my understanding) a contract does not automatically qualify for a cancellation period. Hence why it can vary, and why I suggested that the contractual cancellation period is whatever you agree.

- i will also point out - why sign something you werent happy with? - Sorry, but it's a valid point

MintyBubbles

Thanks

Apparently it is from here

Consumer Contract (Information and Cancellation and Additional Charges Regulations) 2013.

We were happy to sign but a change in our circumstances mean we have had to pull house off market (health issue). Contract was also signed in own home

MB

Mallotum_X

Do you think it would be unfair for you to pay a commission if you sell the house to someone they introduced?

As they haven't introduced anyone then what is the issue here? You have cancelled, they didn't introduce anyone therefore no commission could be due any way.

Annie1960

MintyBubbles wrote: »

Thank you. Well yes they did start work immediately, but at no point explained verbally or in writing that this would void my right to cancel....

I would have thought that the cancellation period was in accordance with the law, not the particularities of the contact....

I do not believe they can remove your legal right to cancel by starting work before the cooling-off period.

I agree with your point.

If an EA did this to me, I would challenge them.
If you do a quick google for 'estate agent cooling off' one of the common things that crops up is the claim that many EAs do not understand the cooling off period.

I found this when I put my own house on the market last year. They did not issue me with any cancellation notice, which of course they are supposed to.

EDIT: in your position, I would write to them and ask them for details of anyone they believe they have introduced. The list will probably come back empty, in which case you can just forget about them.

Annie1960

Mallotum_X wrote: »

Do you think it would be unfair for you to pay a commission if you sell the house to someone they introduced?

The point is they are not supposed to start marketing until after the 14 days have passed, otherwise they are trying to remove the consumer's rights. The EA is in the wrong unless they got specific written consent. Do you think this sort of behaviour should be supported?

So yes, in this case it would be unfair for the consumer to pay commission, especially if it is a 'ready, willing and able' contract.

jjlandlord

Not sure what is the point of this thread if the agent indeed did not introduce anyone.

Anyway...

MintyBubbles wrote: »

Now setting aside the issue of introductions as they have not introduced anyone, it has always been my understanding that if you void a contract during a 14 day cooling off period it is as if that contract never existed.
Is that correct??

It was under the distance selling regulations, which have been replaced. I don't know the current position though it is probably similar.

Note, though that you lose your full right to cancel if you ask the agent to start work before the 14 day period is over.
In practice, I doubt many sellers want their newly appointed agent to do nothing for 14 days. Once instructed I think they want him to get on with it.