Signed agent contract, found buyer privately

goodwithsaving

Sadly, due to relocation I have to sell my house that I have renovated and didn't buy too long ago. Selling is my only option and I won't rent it out. It's time to move on.

My questions are: I have signed a contract with an agent, although my house is not yet on the market. I have been approached privately for a sale by a friend of a neighbour. Do I have to tell the agent? Do I then owe the agent anything?

My house hasn't been advertised etc. The marketing material has been produced but not advertised as I haven't yet made a firm decision on selling.

Thank you in advance for all help

Browntoa

Afraid you have a contract , possibly get out clause if buyer NOT registered with agent

Surrey_EA

I'd simply ring the EA up and tell them you've found a buyer privately and no longer with them to go ahead with marketing your property.

Presumably no viewings have taken place organised by the EA?

eddddy

You have to read the contract that you agreed to, but in general,

If it's a sole agency agreement...

...you only have to pay the EA if a buyer is introduced by that EA or another EA. You don't have to pay the EA if you found the buyer privately (i.e. the friend of a neighbour).

But if it's a sole selling rights agreement...

... you have to pay the EA however the buyer was found (even if the buyer is a friend of the neighbour).

Extra considerations...

- If you have a sole agency agreement, make sure that this prospective buyer does not contact the EA.

- If you signed the contract away from the EA's office, you should have a 14 day cooling off period in which to cancel the contract. (But that's likely to be messy, and you'd probably have to pay them for work they've already done.)

- Even if it's a sole agency agreement, some EAs charge withdrawal fees, which you may still have to pay.

So the starting point is to read your contract in detail.

illusionek

Do you have any cooling off period?

goodwithsaving

Thank you. That's really helpful.

My contract says this:

'For the avoidance of doubt it is stated herein that the client will be liable to pay the appropriate fee plus VAT thereon to [agent], together with any other costs or charges agreed. If at any time there is an unconditional exchange of cotnracts in relation to the property with either a purchase introduced by [agent] during the period of the sole agency or a purchaser introduced by another estate agent during that period.'

goodwithsaving

I signed it about 8 weeks ago as I wanted to be ready in the event something came to the market that I wanted to buy. I haven't yet put mine on the market however.

eddddy

goodwithsaving wrote: »

My contract says this:

'For the avoidance of doubt it is stated herein that the client will be liable to pay the appropriate fee plus VAT thereon to [agent], together with any other costs or charges agreed. If at any time there is an unconditional exchange of cotnracts in relation to the property with either a purchase introduced by [agent] during the period of the sole agency or a purchaser introduced by another estate agent during that period.'

So that seems to be a typical sole agency agreement, as I described above.

So no fee is payable if you find a buyer privately (but check for withdrawal fees etc).

You could even let the contract with the EA continue, whilst you negotiate with your privately found prospective buyer - in case they never actually make an acceptable offer.

But maybe mention to the EA that you're in discussion with a 'friend of a friend', to avoid 'misunderstandings' later.

goodwithsaving

Thank you. Really helpful and greatly appreciated!

MSE works wonders yet again.

KiKi

I wouldn't even tell the EA you've found someone. Simply say you've decided not to put it on the market with them.

pollyannaL

Hello,

Apologise I am not directly answering your question, but just wanted to gain some info on a 'private sale' & the decision making behind it.

I am a FTB looking for a house, and i have missed out on viewings as the vendor has agreed to sell to a private buyer. Obviously as it keeps happening, I am wondering why vendors wouldn't proceed with viewings via EA to see if someone*me* would offer more than the private buyer's offer? I would have offered well over asking price for some of the properties, but I never even get a look in!

Are you not tempted to see what higher offers you can get, rather than just this private offer?

(like I said, just wanted to know the perspective of a vendor as I keep losing out!)
Thanks