Estate Agent Withdrawal Fee

captainusa

Hi,

Hoping someone can advise. I signed up with an estate agent to sell my house. I signed up to a 20 week sole agency period and was aware that there was a withdrawal fee if I took it off the market. My understanding was that the withdrawal fee was only payable during those 20 weeks. The 20 weeks is up and I want to get rid of the agents. They say I owe the fee.

I've read every word of the contract and it doesn't say either way. The relevant bits in my eyes are that the contract was for 20 weeks and then either party could give 28 days to terminate the contract. Therefore no fee as the contact will be over. They've sent me the following in an e-mail....

The Withdrawal fee applies to all properties who chose to withdraw from the market; regardless of sole, multi or moving from other agents. If the property is no longer with ****** or has been sold by any other agency other than ******, the withdrawal fee applies to all properties who chose to do so. The 20 week agency period is for the sole agency agreement. What this means is that you agree to instruct the property with ******* Estate Agents only, once the 20 week period has passed, then you may sell through another agency, but the withdrawal fee would still apply if you sell with the other agency as this would recuperate 25% of our outgoing costs (photographs, advertising, marketing etc.)

It's all good sending that to me in an e-mail, but it doesn't mention any of that in the contract or in any communications before I agreed the contract.

Do I have a leg to stand on?

Akahotpot

Have you given them 20 weeks + 28 days notice ?

captainusa

Akahotpot wrote: »

Have you given them 20 weeks + 28 days notice ?

Yes. Part of me thinks they are trying it on.

Slithery

What does your original contract say?

eddddy

EA contracts with withdrawal fee would 'typically' work like this:

• You cannot terminate the contract in the first 20 weeks (or whatever the minimum contract period is).

• If you terminate the contract after 20 weeks - you have to pay the withdrawal fee.

i.e. You cannot avoid the withdrawal fee - unless the EA actually sells the property. I call it "paying the EA for failing to do their job". (An EA got really angry recently when I said that to them.)


But... the contract has to clearly state that there is a withdrawal fee. Have you read the whole contract?

If the fee isn't mentioned in the contract, you don't have to pay it.

googler

Rather than quoting the e-mail, tell us what the contract (which you signed) says ...

captainusa

eddddy wrote: »

EA contracts with withdrawal fee would 'typically' work like this:

• You cannot terminate the contract in the first 20 weeks (or whatever the minimum contract period is).

• If you terminate the contract after 20 weeks - you have to pay the withdrawal fee.

i.e. You cannot avoid the withdrawal fee - unless the EA actually sells the property. I call it "paying the EA for failing to do their job". (An EA got really angry recently when I said that to them.)


But... the contract has to clearly state that there is a withdrawal fee. Have you read the whole contract?

If the fee isn't mentioned in the contract, you don't have to pay it.

Thanks, the contract does mention the fee, but I was under the impression it stood during the 20 weeks + 28 days. So if I gave notice to terminate the contract in the required time then the fee is null and void. I would have thought there would be specific mention that the fee is applicable no matter what.

G_M

captainusa wrote: »

...
The Withdrawal fee applies to all properties who chose to withdraw from the market;....

Just tell them that the fee does not apply because the property has not chosen to withdraw from the market.

It is you who has chosen.

Alternatively, just leave it on the market, and

* increase the asking price ny 50%, and/or
* choose to do all viewings yourself, ask for your keys to be returned, and then just don' be available when buyers wish to view, and/or
* decline all offers

eddddy

captainusa wrote: »

Thanks, the contract does mention the fee, but I was under the impression it stood during the 20 weeks + 28 days.

I've seen many EA contracts with withdrawal fees - but I've never seen one that works like that.

They've always worked in the way I describe in my previous post.

captainusa

G_M wrote: »

Just tell them that the fee does not apply because the property has not chosen to withdraw from the market.

It is you who has chosen.

Alternatively, just leave it on the market, and

* increase the asking price ny 50%, and/or
* choose to do all viewings yourself, ask for your keys to be returned, and then just don' be available when buyers wish to view, and/or
* decline all offers

I’ll try your first suggestion before ultimately resigning myself to the second!

captainusa

googler wrote: »

Rather than quoting the e-mail, tell us what the contract (which you signed) says ...

It just says there is a withdrawal fee, but doesn’t mention any terms and conditions associated to it.