Sold house should I negotiate agent fees

AnotherJoe

G_M wrote: »

The Estate Agent has found a buyer for you and your house is sold. Clearly there is a contract between you and the agent. On the one hand they introduced a buyer and on the other hand you agreed to the introduction, let the buyer view (via the agent) and accepted the buyer's offer (again I assume via the agent).
You have clearly accepted the EA's services so a contract exists.

That's the whole point it's not clear at all. If the agreement was between the builder and EA there may be no contract between EA and OP and it could be argued contract was between builder and OP and it becomes null and void if OP doesn't purchase from builder.

CocoLouie

AnotherJoe wrote: »

That's the whole point it's not clear at all. If the agreement was between the builder and EA there may be no contract between EA and OP and it could be argued contract was between builder and OP and it becomes null and void if OP doesn't purchase from builder.

Not unless the contract with the builder states that the fees would be due. Could easily go EA has contract with the builder so EA charges builder then the builder charges the OP as builder has contract with OP.


OP carefully check what is in your contract with the builder. I had a similar arrangement with a builder before and I signed something with the EA and agreed a fee with them if I pulled out of buying the house.

G_M

AnotherJoe wrote: »

That's the whole point it's not clear at all. If the agreement was between the builder and EA there may be no contract between EA and OP and it could be argued contract was between builder and OP and it becomes null and void if OP doesn't purchase from builder.

Perhaps. But I doubt it. As soon as the OP/builder deal collapsed, the EA would have no ongoing contract with the builder to find a buyer (since the builder could not sell).


So any buyer found who subsequently purchased, must have been introduced on behalf of the OP. There would be an implied contract between OP/EA.


Of course, judges can be fickle, so it's never certain how they'd rule if it went to court, but if I were the EA I would believe I had a good case and would pursue my fee.

eddddy

AnotherJoe wrote: »

That's the whole point it's not clear at all. If the agreement was between the builder and EA there may be no contract between EA and OP and it could be argued contract was between builder and OP and it becomes null and void if OP doesn't purchase from builder.

If the builder has contracted with the EA to sell the property...

... I'd be 99.9% certain that the builder also has a contract with the OP, with terms that deal with this situation.


I'd bet that the OP's contract with the builder say something like...

"If the EA we instruct introduces a buyer, or you introduce a buyer during the EA's sole agency period - and you don't buy our new build property - then you agree to pay a fee of £x to the EA."

AnotherJoe

Quite possibly edddy. OP needs to look at what they signed.

stationairy

Hi all

Sorry for late response and some great replies

So I took out what is called a move maker with David Wilson homes I have reviewed contract and document and no mention of anything if I pull out and in fact they stated to me I couldn’t reserve the new build till I sold mine.

I haven’t signed a contract with estate agent they have now sent one out after I informed them I was going with an existing build it was at that point they then told me fees.

I will now check with DWH to make sure and also think £1500 is reasonable I just wondered if they was the possibility before I sign to get anything off.

Then again I don’t want to lose the sale do people think it’s not worth risking or if they do what would be your strategy price wise.

I wouldn’t want to cut the estate agent out as I appreciate the work they have done

getmore4less

1.2% on a low value property is not that bad.

CocoLouie

Once you take VAT off the fee they will be getting <!% for a lower priced property which is a very reasonable fee.

[Deleted User]

CocoLouie wrote: »

Once you take VAT off the fee they will be getting <!% for a lower priced property which is a very reasonable fee.

OP needs to check that it includes VAT. Some dodgy estate agents still use the +VAT trick including the one in my post above.

Wobblydeb

getmore4less wrote: »

1.2% on a low value property is not that bad.

As long as it includes VAT! 1% + VAT is standard for low value properties around here (I couldn't negotiate any lower on similar priced flat recently).