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Estate Agent illegal practises?

Hi,

I am selling my property through an Estate Agent based on the terms of a "No-sale-no-fee" and for a fixed fee. It is a Sole Agency agreement. The agent is selling my property with a "informal tender", which implies that the buyer will cover the sale fee. To my surprise I have become aware that the agent is charging my buyers 2%+VAT of the sale price of the property, which is several thousand pound more of what would be the agreed Fixed Price sale fee. Is this legal and what rights do I have as a seller as this is putting off and prising out a lot of my buyers?

Comments

  • Change estate agents then to one that suits your needs.
  • Guest101
    Guest101 Posts: 15,764 Forumite
    rila75 wrote: »
    Hi,

    I am selling my property through an Estate Agent based on the terms of a "No-sale-no-fee" and for a fixed fee. It is a Sole Agency agreement. The agent is selling my property with a "informal tender", which implies that the buyer will cover the sale fee. To my surprise I have become aware that the agent is charging my buyers 2%+VAT of the sale price of the property, which is several thousand pound more of what would be the agreed Fixed Price sale fee. Is this legal and what rights do I have as a seller as this is putting off and prising out a lot of my buyers?



    Is this mentioned in your contract?
  • princeofpounds
    princeofpounds Posts: 10,396 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Well done for working it out, even if you signed up before you did. Plenty of vendors think they are getting a free service, when in fact they pay one price through a lower offer, and typically another price through the fact that buyers will just be plain put off.


    Tell the agent you have realised this is a bad deal and disinstruct them at the earliest opportunity.


    (This sort of thing goes on all the time in the letting space, I've never understood why LLs don't pay more attention to the total cost of letting agents as it comes out of the tenant's accommodation budget that could be paying rent)
  • rila75
    rila75 Posts: 13 Forumite
    Part of the Furniture First Post Combo Breaker
    Thanks for the people comments. Very valuable hopefully for everyone in the same both.
    This has never been advised to me. The estate agent never disclosed what they will charge the buyer. My expectation naturally was that buyer will cover the sellers fee. Now I will miss on the purchase I have agreed due to the sale of my property failing. What can I do?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    When you say, "this has never been advised to me," do you mean that this sale by tender is not in the contract you signed with the estate agent?
  • rila75
    rila75 Posts: 13 Forumite
    Part of the Furniture First Post Combo Breaker
    Sale by tender is not in the contract, but it has been advised to me over an e-mail as the initial marketing strategy.
  • konark
    konark Posts: 1,260 Forumite
    It seems a strange way of doing things, (buyers paying EAs fees) as the EA ostensibly works for the seller not the buyer.
  • stator
    stator Posts: 7,441 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    As a buyer I would avoid anyone using this method to sell a house. It creates the conflict of interest and just feels like a complete scam. If the seller is trying to avoid paying their estate agent fees, what else are they going to try on?
    Changing the world, one sarcastic comment at a time.
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