estate agent contracts

canaldumidi

Couple of questions about whether these are standard terms they all use, and/or can be varied (or try a different agent):

commission beomes due when buyer exchanges contracts (though payment can be deferred by agreement till Completion). What if buyer fails to Complete? Surely the seller does not have to pay the commision?

28 day notice period to end sole agency contract. Seems a long time if you want to change agent.

dc197

Those seem fairly normal.
If your buyer fails to complete, your agent still wants paying (and rightly so) for the work they have done.
You would reclaim the costs of this, and anything else, from the buyer if they defaulted.

eddddy

canaldumidi wrote: »

commission beomes due when buyer exchanges contracts (though payment can be deferred by agreement till Completion). What if buyer fails to Complete? Surely the seller does not have to pay the commision?

That's standard - although make sure you have agreement to pay on completion.

If the buyer fails to complete (which is very, very rare), you would sue them for your EA fees plus lots of other damages.

canaldumidi wrote: »

28 day notice period to end sole agency contract. Seems a long time if you want to change agent.

That's standard. But also check the minimum contract period - typically EAs ask for between 12 to 20 weeks.

Also, check whether it's minimum contract period plus 28 days notice (or including 28 days notice).

And then negotiate min contract period down to 8 weeks max, before you sign the contract.

canaldumidi

Thanks for the replies - all sorted now. The agent has agreed to alter both clauses.

Just shows contracts are not written in stone and it's always worth asking for changes.

Yes, 8 week contract, for maximum flexibility.