Sole Agency Agreement cancellation rights.

mrginge

My only question re the above would be

1. Has the contract been completed ?
2. If not, does the full fee represent the EA's cost?

My gut says full fee is due as EA has completed their obligations regardless of a cancellation period. In fact it would be seriously unfair if such a loophole was allowed to stand.

Of course, if that buyer was not introduced by EA then only the lesser cancellation fee is due.

LittleMax

mrginge wrote: »

Of course, if that buyer was not introduced by EA then only the lesser cancellation fee is due.

Not necessarily - I suspect there will be a clause that says that in the sole agency period, wherever the buyer is found the vendor is liable for the fees as if the buyer had been found by the EA.

mrginge

LittleMax wrote: »

Not necessarily - I suspect there will be a clause that says that in the sole agency period, wherever the buyer is found the vendor is liable for the fees as if the buyer had been found by the EA.

That would not be a sole agency agreement.

LittleMax

mrginge wrote: »

That would not be a sole agency agreement.

The agreement I have been asked to sign says

XX will not enter into a multi-agency agreement. Our service is provided as sole agency agreement giving XX sole agency rights.

By agreeing to a sole agency agreement and giving us sole selling rights you will be liable to pay remuneration to us... in each of the following circumstances,

a) if unconditional contracts for the sale of the property are exchanged in the period during which we have sole selling rights, even if the purchaser was not found by us but by another agent or by any other person including yourself.

Is this not standard clauses in a sole agency agreement? I had assumed they were. Help! not sure what to do now.

mrginge

LittleMax wrote: »

The agreement I have been asked to sign says

XX will not enter into a multi-agency agreement. Our service is provided as sole agency agreement giving XX sole agency rights.

By agreeing to a sole agency agreement and giving us sole selling rights you will be liable to pay remuneration to us... in each of the following circumstances,

a) if unconditional contracts for the sale of the property are exchanged in the period during which we have sole selling rights, even if the purchaser was not found by us but by another agent or by any other person including yourself.

Is this not standard clauses in a sole agency agreement? I had assumed they were. Help! not sure what to do now.

You have a contract specified as sole agency, with terms applicable to sole selling.
That is highly misleading.
iwonder whether such terms are enforceable....

LittleMax

mrginge wrote: »

You have a contract specified as sole agency, with terms applicable to sole selling.
That is highly misleading.
iwonder whether such terms are enforceable....

I don't want to hijack this thread but what is the difference between sole agency and sole selling - is it just the finding a buyer myself? Presumably of another agent finds the buyer i have to pay double fees whether sole agency or sole selling.

eddddy

LittleMax wrote: »

I don't want to hijack this thread but what is the difference between sole agency and sole selling - is it just the finding a buyer myself? Presumably of another agent finds the buyer i have to pay double fees whether sole agency or sole selling.

Generally, you're correct.

Sole Agency - the EA gets a fee if they, or any other agent, introduces a buyer. (But not if the seller finds a private buyer.)

Sole Selling - the EA gets a fee if they or anyone else finds a buyer. (Including if the seller finds a private buyer.)


But many EAs are now adding all sorts of caveats and 'nasty' clauses to their contracts - so don't rely on just the 'sole selling' vs 'sole agency' clause. I have seen some outrageous examples. People who sign them must either never read them, or be very naive.

So if you're talking to 3 or 4 agents about marketing your house, get a copy of each of their contracts to compare. Read every clause. If there's something you don't like, insist that it's changed.

LittleMax

eddddy wrote: »

But many EAs are now adding all sorts of caveats and 'nasty' clauses to their contracts - so don't rely on just the 'sole selling' vs 'sole agency' clause. I have seen some outrageous examples. People who sign them must either never read them, or be very naive.

So if you're talking to 3 or 4 agents about marketing your house, get a copy of each of their contracts to compare. Read every clause. If there's something you don't like, insist that it's changed.

Thanks Eddddy - it's the first time I have ever used an estate agent to sell. I did read all the clauses, I'm one of those people who read everything (people get frustrated with me when I'm asked to sign anything and keep showing me the dotted line!). But I naively assumed that sole selling was standard.

It is interesting that none of the agents show you their terms and conditions up front. This seller has learned that next time they would ask for a copy of terms and conditions from every agent up front!

I have sent an email to the agent in question this morning seeking clarity on what happens after the tie-in period. This is more the concern for me, as I am highly unlikely to find a buyer myself during the tie in period.

So glad I read these forums and how much I learn every day. Thank you for all your posts. And once again apologies to Nain Daisy for gatecrashing their thread.

eddddy

LittleMax wrote: »

I have sent an email to the agent in question this morning seeking clarity on what happens after the tie-in period.

Usually, there is a tie in period, of say 10 weeks, then you are free to give 4 weeks (or sometimes 2 weeks) written notice, if you want.

But, even if that period is finished, if you later sell to somebody introduced by that EA - you have to pay them commission.

So if you instruct a new agent, you must ensure that they will not expect a fee if somebody introduced by the previous EA comes back and decides to buy. (I recently had a big argument with an EA about this. They refused to agree, so I didn't instruct them.)

Jhoney_2

LittleMax wrote: »

The agreement I have been asked to sign says

XX will not enter into a multi-agency agreement. Our service is provided as sole agency agreement giving XX sole agency rights.

By agreeing to a sole agency agreement and giving us sole selling rights you will be liable to pay remuneration to us... in each of the following circumstances,

a) if unconditional contracts for the sale of the property are exchanged in the period during which we have sole selling rights, even if the purchaser was not found by us but by another agent or by any other person including yourself.

Is this not standard clauses in a sole agency agreement? I had assumed they were. Help! not sure what to do now.

That was also my understanding. I do not know of any EA that doesn't - although the online ones I have viewed seem to do things a little differently and have no tie-ins for example.