Estate Agent Charging Us for Failing to Sell House

normal

Hi

I'm looking for advice. I recently got a letter from a legal company representing an estate agent we once used to try and sell our house. Basically, I used them for about 9 months and didn't succeed.

After the house had been on sale for about 4 months, a couple did come and see the house and made an offer, which we accepted, and then they withdrew as they didn't actually have the money when the estate agent checked. After that, we didn't get any more offers and so we decided to switch estate agents. A month after the new estate agent took over, the same couple came back (via the new agent) and had raised more money to buy the house. The sale went through last November.

The problem is that the legal company is quoting a clause in the contract with the first estate agent we signed with, stating that we owe the full fee if we sell to anyone they introduce. What rankles about this is that we asked the valuer about this clause before we signed and he said not to worry as it was an anti-fraud clause. We then also contacted the original estate agent again (after we were no longer with them), and asked about this clause after the couple had made a new offer. We were told not to worry about it.

Naturally, we're deeply upset to be asked to pay over £4,000 for having failed to sell the house, and then being told not to worry about the clause even though we asked them before signing, and again before accepting the offer from the couple a second time. It's not as if we tried to defraud anyone. We paid over £5,000 to the second estate agent, so we paid more! And it's not as if we've got money as we sold as we had to downsize. The legal company said they'd check on these things, but they say the estate agent denies the events (as they have no record) and they're demanding all this money.

I appreciate we signed a contract, but I can't help feel aggrieved as we've been told twice (verbally) not to worry about it, they failed to sell the place, we paid someone else more money, and the estate agent now denies events. The clause also seems extremely unfair as there's no time limit on it. In effect, it continues forever.

In addition, to having downsized, we also left the country (it's purely by chance that I picked up a letter with the claim). It occurred to us, that although the legal company is threatening to take us to county court, they don't have any correct contact details for us, nor even know which country we live in. It's tempting to ignore them, but we worry about any consequence if we move back to the UK.

All advice greatly appreciated.

jamei305

What does that clause in your contract actually say?

TonyMMM

Did you tell the 2nd agent that the buyers had already been introduced to the property by agent 1 ?

Contractually, you almost certainly owe the money .... if you are no longer in the UK, they will not be able to enforce any ccj though.

It may affect you if/when you return.

normal

jamei305 wrote: »

What does that clause in your contract actually say?

Sole Agency

You will be liable to pay remuneration to us, in addition to any other costs or charges agreed if at any time unconditional contracts for the sale of the property are exchanged (i) with a Purchaser introduced by us during the period of our sole agency or with whom we had negotiations about the property during that period, or (ii) with a Purchaser introduced by another agent during that period.

In this agreement reference to 'another agent' includes any person operating an internet site or using electronic media to advertise properties for sale whether or not they do so with the authority of the wonder of the property. 'introduced to us' includes any person introduced by us to your property by browsing the internet site or viewing other electronic media used by us to advertise your property for sale.

normal

TonyMMM wrote: »

Did you tell the 2nd agent that the buyers had already been introduced to the property by agent 1 ?

Contractually, you almost certainly owe the money .... if you are no longer in the UK, they will not be able to enforce any ccj though.

It may affect you if/when you return.

Yes. Both the buyers and ourselves told the second estate agent about the previous 'negotiations'.

ognum

You need to read your contract carefully and if needed get a free half hour with a solicitor.

The process that often occurs is that the first agent provides a list of all those who were first introduced by them and provides this to the second agent.

I believe your second agent has been given/taken money that is not theirs as they did not make the introduction. You may need to take legal action to reclaim this from the second agent this is why you need legal advice.

I do think the first agent is due the money this is why you need legal advice on the subject. Did the second agent know the first agent had mad the initial contact?

Lots of questions?

ognum

normal wrote: »

Yes. Both the buyers and ourselves told the second estate agent about the previous 'negotiations'.

You will need to reclaim the monies from them then! Take legal advice.

normal

A quick related question then. If we had legal advice cover via our home insurance at the time of the sale and for a period after, but no longer have that policy (as we're no longer in the UK), would we still be able to contact the legal helpline for advice?

It's a bit tricky trying to get the advice when we're abroad and obviously a free telephone legal advice helpline is very attractive.

mrginge

Sounds fair enough to me.

Can you provide evidence to support your statements that the agents told you you were not liable for their fees?

It's very easy to make a claim like that, but unless you can provide some evidence then the only thing we know for sure is that you signed contracts where you said you would pay each agent.

Bluebirdman_of_Alcathays

As above, seems legit to me. Agent 1 introduced your buyer, and you haven't paid them for their service.


That said, if you won't be resident in the UK for the next 6 years, it's probably not worth paying up.

normal

I appreciate that I'm in a difficult situation as I can not provide solid evidence. I don't even believe the people at the first estate agent are deliberately, lying. They must deal with 100's of properties, so can't be expected to remember every conversation. Thing is, I don't deal with 100's of properties. I was selling just our home.

It just seems morally completely wrong that we should be £4000 worse off having acted completely in good faith all the time. It also could financially ruin us, which adds additional stress.