Help!! Advice re Estate Agent Contract

Pups

I guess is a major lesson learned - read the contract, ask questions for clarity & change/remove unfavourable terms.

Annie1960

Pups wrote: »

Hi Folks,


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

You should have had all the rest in writing.

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 is perfectly OK, and is covered by TPOS guidelines.

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..."

This part does not look OK to me, and seems to be in breach of TPOS code. See para 5p of this link:

http://www.tpos.co.uk/downloads/TPOE27-3%20Code%20of%20Practice%20for%20Residential%20Estate%20Agents.pdf

In your position, I would write to the EA and state that they have failed to use reasonable skill and care as they have valued the property at a level which has attracted zero viewings.

I would also point out (assuming the contract is for 20 weeks) that their clause above is an 'unfair term' and does not comply with the TPOS code of conduct.

I would give them the choice either to cancel your contract at no cost to you, or you will go through the TPOS complaints procedure.

Pups

Thanks Annie1960.

if I interpret correctly, in this case, TPOS code of conduct clause 5p means notice at 17 weeks ending 20 weeks, whereas EA terms equate to 23 weeks?

re fees, I read in TPOS code of conduct clause 5h "..They must be fully explained..". The only fee discussed & explained was the commission fee (same as the other EAs who valued the property). Withdrawal fees are only in the small print of the terms & were never explained nor discussed verbally.

Pups

Hi Annie1960,

how does the following look?

"I write further to our meeting of nth June, where my wife and I expressed our issues, concerns and loss of confidence with "EA name" and feel you have failed to use reasonable skill and care in valuing and marketing our property failing to attract zero viewings or interest to view our property to date.

Having reviewed the small print of your Terms of Business, I believe clause 6 to be an 'unfair term' and does not comply with the TPOS code of conduct.

It is with regret that we now wish, with your agreement, to terminate to instruction with immediate effect and at no cost to my wife and I.

Should you not agree, the only other option available with be to follow the TPOS complaints procedure."

Mrs_Imp

Pups wrote: »

Hi Annie1960,

how does the following look?

"I write further to our meeting of nth June, where my wife and I expressed our issues, concerns and loss of confidence with "EA name" and feel you have failed to use reasonable skill and care in valuing and marketing our property failing to attract zero viewings or interest to view our property to date.

That's a very long sentence, it would read better seperated up a bit, and there's a double negative in there too.

'I write further to our meeting of nth June, where my wife and I expressed our issues, concerns and loss of confidence with "EA name". We feel that you have failed to use reasonable skill and care in valuing and marketing our property. There have been no viewings and no interest to view our property to date.'

I can't comment much on the rest. Just make sure you stick with facts, and no emotions, and state clearly how you want it resolved.

Annie1960

Just do a final check to make sure they are with TPOS. That seems to be the main Ombudsman, but there is another one whose name I can't recall.

The EA should have which Ombudsman scheme they belong to on their literature, website etc.

Also, hang on a day or two to see if anyone else comes along with suggestions.