Estate agents fees when 2 agents have been appointed.

LJ2412

Hi
I would be grateful of any advice on our following situation.

We listed our house with an estate agent after deciding to move to a bigger property. A valuation appointment was made and straight after we were presented with a contract to sign, which we did sign. The whole process was quite rushed, and it was explained to us that we would not be tied in to the one agency and that we could alter it whenever we wanted. We signed this on 18/7/2017.

At first we had not realised that we had not been left with a copy of the contract and emailed the estate agents for a copy, which we received 27/7/17. Following various viewings of other properties a second estate agent informed us that we could appoint two agents and that we would only have to pay the estate agent that sold the property. We showed the second Estate agent our contact and they informed us that this was possible and that we would not be liable to pay two sets of fees as long as we emailed the first EA within the 14 period.

We therefore emailed the first EA on 31/7/17 to inform them that we had appointed a second EA to try and maximise the sale of the property. No reply or acknowledgement was received form them.

We have just accepted a offer on our property and have now been getting quite bullying phone calls from the 1st EA telling us that we had a sole selling rights contract with them and therefore we are liable to pay two sets of fees.

Within the contract it does state "This agency will be for an initial period of 0 weeks and will continue thereafter until the expiry of 14 days notice given by either party to the other in writing"

We would be grateful if anyone could please provide us with advice as to if we are liable to pay both EA (and not just the one that got the sale) considering that
* We gave written notice within the 14 days advising them that we were appointing a second agent.
*The 2nd EA was shown a copy of the agent and advised us that we would not be liable to pay two agents, before we signed with them.

Surrey_EA

Without seeing the 'ts & cs' in the contract with the first EA, it is difficult to advise.

Does the contract reference 'sole selling rights' anywhere? Note this has a different meaning to 'sole agency'

I would not be relying on the 2nd agent to advise you what you should or shouldn't be doing concerning your contract with the first agent.

As a reasonable person I would accept your email to the first EA on 31.07.17, as termination of their contract. But, it again depends on exactly what was contained in your email of that date, and exactly what was contained in their contract.

On the information you have provided, it seems to me unlikely that EA has a claim for a fee, if the second EA has introduced a buyer who has made an acceptable offer.

eddddy

Based on what you say in your post....

LJ2412 wrote: »

Estate agents fees when 2 agents have been appointed.

LJ2412 wrote: »

We therefore emailed the first EA on 31/7/17 to inform them that we had appointed a second EA to try and maximise the sale of the property.

LJ2412 wrote: »

* We gave written notice within the 14 days advising them that we were appointing a second agent.

It sounds like you intended to have 2 EAs actively marketing your property at the same time.

i.e. You didn't intend to terminate the contract with EA1, when you instructed EA2.

TBH, that almost certainly makes you liable for both fees as a result of EA2 finding a buyer - whether the contract with EA1 was 'Sole Selling Rights' or 'Sole Agency'.

LJ2412 wrote: »

We showed the second Estate agent our contact and they informed us that this was possible and that we would not be liable to pay two sets of fees as long as we emailed the first EA within the 14 period.

...

*The 2nd EA was shown a copy of the agent and advised us that we would not be liable to pay two agents, before we signed with them.

I think EA2 meant that you should terminate the contract with EA1 by giving 14 days notice. Not that you give 14 days notice of appointing a second EA to work in parallel.

(I guess it would have been helpful if EA1 replied reminding that you would have to pay 2 fees.)

But if you really feel that EA2 misled you, that would be "misrepresentation" and, in theory, you could claim your consequential losses from EA2 (i.e. EA2 pay EA1's fee.)

But in reality, I suspect that EA2 will just deny saying that.

pinkshoes

What exactly did you write in the email to EA1?

This will determine what you have to pay.

From what you have written, it sounds like you have just informed them you are using TWO EAs instead of just them (rather than terminating the contract with them), so both fees are due.

EA2 clearly wanted you to terminate your contract with EA1, which is what they told you to do.