Help!! Advice re Estate Agent Contract

Pups

Hi Folks,

Signed Sole agency agreement 10 weeks ago with EA - w/c 30-03.
My property hit the market 8 weeks ago - 15-04.
Not one viewing & EA saying no interest from prospective buyers.

Wife & I met EA last week and expressed our concerns & issues.
Have lost all confidence in EA (we made a mistake) & wish to withdraw & change to other agent.

The agent never discussed the terms of the contract to confirm we had read & understood them, only focused on their commission fee.

Can anyone advise regarding contract clauses below:

1) Withdrawal fee - "If the client disinstructs EA for whatever reason, EA will charge the client 0.1% of the Guide Price plus VAT to part cover external marketing costs...."

This clause seems to be open ended & unfair. Is the EA really entitled to this?

2) Termination of instruction - "The Client has the right to terminate...giving 21 days notice in writing after initial 20 week marketing period..."

Should I just write to disinstruct & state the EA agrees to waive their rights to any fees due to the EA lack of performance & failure to meet specific requests?

Thanks in advance.

csgohan4

Did you sign a contract? Did you read the contract?


Maybe the guide price is too high relative to properties nearby

mrginge

What makes you think you can simply disregard the terms that you agreed to?

Perhaps you could post the terms which the EA has not adhered to.

G_M

Well it looks like you are tied in for 20 weeks. Personally I would never agree a tie-in longer than 10 weeks, and preferably less!

Surely you read the contract before signing........?????

I suspect the withdrawal fee may be unenforcible so I would just terminate the contract in line with the termination clause, and then contest any bill either
* as an unfair term (check with Trading Standards / Office of Fair Trading) or
* as it contradicts the termination clause

Usually the contract period (10 weeks, 12, 20 whatever) is specified, and notice of 2 or 3 weeks can be given in advance (eg 2 weeks notice at 8 weeks to terminate after a 10 week contract).

In this case it appears you cannot give notice for 20 weeks, and the 3 weeks notice will take you to 23 weeks.

It's a ****er of a contract you agreed to!

mrginge

G_M wrote: »

I suspect the withdrawal fee may be unenforcible ...

I'm interested to know why.

G_M

mrginge wrote: »

I'm interested to know why.

either
* as an unfair term (check with Trading Standards / Office of Fair Trading) or
* as it contradicts the termination clause

but note I said 'suspect'.....

googler

Pups wrote: »

1) Withdrawal fee - "If the client disinstructs EA for whatever reason, EA will charge the client 0.1% of the Guide Price plus VAT to part cover external marketing costs...."

This clause seems to be open ended & unfair. Is the EA really entitled to this?

Yes, they're entitled to it because it's what you and they agreed to - in a contract.

It's perfectly fair for them to recoup their fixed costs if you remove any chance of them earning their full fee by selling the property. Makes perfect business sense, wouldn't you say?

It's also perfectly fair because you agreed to it. In the contract.

mrginge

G_M wrote: »

but note I said 'suspect'.....

Ok then.

I suspect that it is perfectly enforceable
* because it is

G_M

Glad we're agreed then mrG!

Pups

thanks for your feedback.

re guide price: we had valuations from multiple agents, all in the same area as our EA, who is now saying drop by over £50K due to "poor market conditions in London" - however, we are in Hants.

didn't read the contract fully - DOHH!! before you all reply, yes I'm a prawn.

Pups

However, the I thought the withdrawal fee clause seemed unfair - one-sided. The EA made their pitch based on a whole host of plausible reasons why them v the rest. It now seems the pitch was baloney and we fell for it. Plus they are not following instruction.

IMHO they appear to be in breach of contract, so why should I pay their costs when they have not even presented a single viewing.