Sole Agency Agreement cancellation rights.

Nain_Daisy

Can an estate agent's 'Sole Agency' agreement state that the contract starts on the day of signing, when it was signed in the sellers home with the agent present, do they have the right not to allow the seller the 14 day cooling off period?
Do they have the right to demand full payment of £1800 + vat, even if the seller found a buyer themselves within the 14 day cooling off period and cancelled the agreement within the 14 days period? The agreement says that the seller would have to pay £500 + vat if the agreement was cancelled within the 14 day cooling off period not the full amount. How much is the seller legally bound to pay?

DaftyDuck

They may have got you to also sign a waiver, allowing them to start marketing straightaway, in return for you losing the 14 - day cooloing-off period. Is such a clause present?

G_M

is that legal? Can you sign away your statutory rights?

Though even if not I imagine they can charge for work done to date (ie any marketing undertaken)

I'd be interested to know.

DaftyDuck

Yes, I believe it is legal. I know of an agent who had that clause with the client, client changed his mind, agent went to court, and was awarded the fee + costs.

The clause, as I've seen it, does only cover the upfront costs (so that "perfessional fertografy" that a sixteen-year-old spotty youf does, the printing cost for illiterate and ungrammatical tripe that pass for details and, if they try it on, the time and effort of picking up a phone and actually talking to a client....

Edit to add: as far as I'm aware, that's not chasing the ~ 1.5% fee, just costs... I don't believe they can chase the fee, inasmuch as the agent in question didn't, and would if he could, if you see what I mean...

mrginge

G_M wrote: »

is that legal? Can you sign away your statutory rights?

Though even if not I imagine they can charge for work done to date (ie any marketing undertaken)

I'd be interested to know.

I would have thought that it could be worded as -

'We won't start any work within 14 days unless you agree to indemnify us for any costs we incur during the first 14 days and you subsequently exercise your statutory right to cancel'

...but of course I am just a simple unqualified Internet ranter.

eddddy

Here's some clarification:

21. Where cancellation rights apply, the consumer cannot waive those rights (although the consumer is of course free to choose not to exercise their right to cancel).

However, provided that the consumer has been made aware, precontract, of their obligations with regard to payment for services or products used, and the trader has obtained express consent (on a durable medium for off-premises services) for the commencement of services in the cancellation period, then if the consumer later cancels, the trader may deduct money for goods used, or recoup the cost of any services delivered until the point of cancellation.

link:https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/429300/bis-13-1368-consumer-contracts-information-cancellation-and-additional-payments-regulations-guidance.pdf

LittleMax

The contract I have been given today to sign has a clause that says

Once this document has been signed, if a sale is agreed during the right to cancel period, you cease to have the right to cancel this contract. As agreed sale will be considered that the service provided by XXX has been fully performed. (An agreed sale, in the right to cancel period, is bound by the terms set out in section 9.1 to 9.4)

9.1 - 9.4 is the Section Direct Dealings and Double Engagement.

If there is no sale agreed and I withdraw during the cooling off period I will be charged £450 plus vat!

Nain_Daisy

I only signed the sole agency agreement where I would be liable to pay their costs which amounts to £600 that's £500 + vat. I didn't sign any waiver, I'm happy to pay £600 but not the full £1800 + vat, when I found the buyer myself.
The invoice I received from the agency stated that they introduced the buyer to me, which is untrue.

Nain_Daisy

This is a copy of the cancellation rights that I signed.
Notice of Cancellation Rights (if applicable)
If the Agency Agreement is completed in your home under the Consumer Protection (Information, Cancellation and Additional Charges) Regulations 2013, you have the right to cancel the Agency Agreement referred to above if you wish. This right can be exercised by delivering or sending (by post or email) a written cancellation notice to the person indicated below at any time within the period of 14 days starting with the date of receipt by you of this notice.
If you wish to cancel the Agency Agreement you should post or deliver your written cancellation notice to the Branch Manager at the branch stipulated in Section 5 above of the Agency Agreement.
If you choose to cancel this contract, your cancellation will be effective from the time your cancellation notice is posted or sent to the address set out above or, in the case of email, on the day it is sent. A cancellation notice may be in any form provided it is in writing, but if you decide to cancel this agreement you may wish to use the attached cancellation notice form.
PERFORMANCE OF THE CONTRACT PRIOR TO THE EXPIRY OF THE CANCELLATION PERIOD
The Services set out in the Agency Agreement will not commence until the day following the last day of the cancellation period. If you wish the Services to begin within the cancellation period, you must agree to this in writing. Your right to cancel the Agency Agreement within the cancellation period will not be affected. However, if you do choose to cancel the Agency Agreement you will be required to pay for goods and services supplied prior to cancellation.
If you wish the Services to begin prior to the expiry of the cancellation period, you should sign the confirmation below.
I have read and have been given the opportunity to ask questions and discuss any points arising in connection with this agreement. I have understood the provisions of this contract including the amounts payable and I agree to its terms including the terms and conditions overleaf.

eddddy

Nain_Daisy wrote: »

I only signed the sole agency agreement where I would be liable to pay their costs which amounts to £600 that's £500 + vat. I didn't sign any waiver, I'm happy to pay £600 but not the full £1800 + vat, when I found the buyer myself.
The invoice I received from the agency stated that they introduced the buyer to me, which is untrue.

So this is a completely different argument.

They are saying they introduced a buyer... you are saying they didn't.

A 'standard' sole agency contract would allow you to find your own buyer, and pay no fee to the EA. (But double check your contract to make sure. Some EAs add some extra nasty clauses.)

Forget the 'cancellation rights' argument for the moment - you need to concentrate on the argument about who introduced the buyer.

(In simple terms, if they completed the contract by introducing a buyer within 14 days, you won't be able to avoid their fee by cancelling the contract.)

alchemist.1

You are still liable for the costs within the 14 day period upto the point of cancelling. If they have sold the property within the property then they would be entitled to their fee.

So trying to get out of it this way doesn't work.

You cant waive the cancellation period however you can request them to work straightaway (with the costs borne by you). In this case you have done.