Estate agent contract question

alreeve27

Hi,

We're about to sell our first property and have appointed an estate agent on a 4 week agreement. The contract looks fine but there's one line in the attached terms and conditions that I'm not sure about:

2.1 SOLE AGENCY - the client will be liable to pay commission to the Agent, in addition to any other costs or charges agreed, if at any time during this agreement of six months thereafter unconditional contracts for the sale of the property are exchanged with a purchaser introduced by:
a) The Agent during that period of its sole agency or with whom the Agent has negotiations about during that period: or
b) By another agent during that period

I understand that if the Agent introduces us to a potential buyer during the 4 weeks, we cannot then exchange with that buyer outside of the agreement within the following 6 months, however what is point b) about? How would another agent introduce us to a buyer if we are on a sole agency agreement?

This may be quite standard, but having not done it before, could someone please confirm what this means and if this is ok?

Thanks very much.

Mobeer

means that if a different estate agent introduces a buyer to you within the period of the agreement (4 weeks) then you still have to pay this estate agent a fee

glentoran99

alreeve27 wrote: »

Hi,

We're about to sell our first property and have appointed an estate agent on a 4 week agreement. The contract looks fine but there's one line in the attached terms and conditions that I'm not sure about:

2.1 SOLE AGENCY - the client will be liable to pay commission to the Agent, in addition to any other costs or charges agreed, if at any time during this agreement of six months thereafter unconditional contracts for the sale of the property are exchanged with a purchaser introduced by:
a) The Agent during that period of its sole agency or with whom the Agent has negotiations about during that period: or
b) By another agent during that period

I understand that if the Agent introduces us to a potential buyer during the 4 weeks, we cannot then exchange with that buyer outside of the agreement within the following 6 months, however what is point b) about? How would another agent introduce us to a buyer if we are on a sole agency agreement?

This may be quite standard, but having not done it before, could someone please confirm what this means and if this is ok?

Thanks very much.

They are sole agent for only 4 weeks, A buyer they introduced (or even if they didn't) could come after 5 weeks and you've went to someone else in that time, you will need to still pay them commission

davidmcn

alreeve27 wrote: »

How would another agent introduce us to a buyer if we are on a sole agency agreement?

Well, this is how the agent makes sure that it is a sole agency agreement! But if you were daft enough to engage another agent during that period then you'd have to pay commission to both.

BTW, is that a typo in the contract or by you? "during this agreement of six months thereafter" doesn't make sense, and where does it mention four weeks in the contract?

alreeve27

Thanks everyone, and David that's exactly what I don't understand about it: the contract itself states "This agency is a Sole Agency for a minimum period of 4 weeks from the date of instruction set out above, or such other period as agreed, and will continue until terminated in accordance with the T&Cs attached".

The contract seems to all make sense, but then the attached T&Cs are generic, and that's where the 6 month section is included. Does the 6 months just relate to us not being able to deal with anyone they introduced us to within our 4 week agreement? We have no intention of going to another estate agent within the 4 week period.

Thanks!

davidmcn

I suspect it should probably be "six months or thereafter", though it's still vague whether "that period" means the four weeks or the six months. Should really be clarified (by which I mean as part of the contract!).

alreeve27

Thanks David, that's really helpful!

G_M

* if you were to instruct a 2nd agent during the 4 weeks, who found you a buyer, then you'd owe BOTH agencies their fees. This is protecting the agent's sole agency basis.

* if during the 4 weeks the agent introduces a buyer who completes 5 months later (ie 4 months after the 4 week agreement ends) you still owe their fee

* bear in mind the contract says "for a minimum period of 4 weeks ". If you do nothing, the contract will continue beyond 4 weeks. If you want the contract to end after 4 weeks, you'll need to write giving notice, and there will be an agreed notice period (2 weeks?) in the contract.

* by the way, congratulations on negotiating 4 weeks - more usual is 12 or even 16 weeks 'locked in'.

alreeve27

Thanks for this, yes very pleased with the 4 weeks, and yep there is a 2 week notice period if we want to leave.

I hadn't really thought too much beyond the 4 weeks at the moment, but thanks for pointing that out about it continuing. I guess we'll see how it goes and think about it after a couple of weeks. That all makes sense about the introduction of the buyer, thanks very much!