EA fees although Private Sale

kirtondm

They tenants contacted us before we instructed the agents, but it’s been a long discussion and only reached a reasonable offer now.
And you didn't agree with the agents when signing the contract that this pre-existing ongoing negotiation would be exluded from their fees?

blobbi

kirtondm wrote: »

They tenants contacted us before we instructed the agents, but it’s been a long discussion and only reached a reasonable offer now.
And you didn't agree with the agents when signing the contract that this pre-existing ongoing negotiation would be exluded from their fees?

Thats a very good point. Its looking like a very expensive mistake. I hope others can learn from this.

Akahotpot

Same situation I paid EA £300 to cover their costs (it mentioned this fiq in the contract if you cancelled ) but they where pushing for more so I said its my only offer and I am happy to go to court.
They did then ring me a few months after the sale to ask who bought the house but I simply said I was not prepared to discuss it on the phone please put any communication in writing never heard any more.

They where a nightmare to deal with I got all the way to a week before exchange to find the "buyer" had not instructed a solicitor or even contacted the EA again ...I am convinced they knew but kept it from me but hey a mate of a mate ended up buying my house but I lost a lot of money on my collapsed purchase

eddddy

blobbi wrote: »

They tenants contacted us before we instructed the agents, but it’s been a long discussion and only reached a reasonable offer now.

So the tenants were introduced long before you instructed the agent.

Ignoring the 'cancellation' aspect - you need to check your contract.

Most 'sole agency agreements' say that fees are only payable if a buyer is introduced by an agent during the contract period.

If that's the case, whether you cancel or not is irrelevant.


However, 'sole selling rights' agreements sometimes have an additional harsher term about a fee being payable if contracts are exchanged during the contract period.

What is the minimum contract period?

middleclassbutpoor

Check your contract - ours had something in there which required us to state any details of potential buyers that we were aware of before entering into the agreement. Any that come forward from the agreement would then we would become liable for costs etc.

Sibz

G_M wrote: »

I think there's a misunderstanding.
The scenario artful/I were debating:

* Agent is employed subject to a 14 day cooling off period
* agent starts work (photos etc)
* tenant makes an offer

* seller cancels agent contrat within the 14 days
* agent claims their costs
* seller pays the costs
* agent claims their seller's fee for selling the property, claiming the tenant was 'introduced' as a result of 'for sale' sign
* seller refuses to pay fee claimimg the tenant's offer was based on previous conversations with the landlord/owner - not as a result of agent markting
* court case ensues and judge makes a decision as to whether the EA has proven his case (that tenant was introduced by EA marketing) on the balance of probabilities

I'd say the balance of probabilities would almost certainly favour the EA, if there was real potential of a private sale why even instruct the EA in the first place? It could be argued that the involvement of an EA advertising forced the tenants to take action they hadn't previously (even increasing an offer).

Teamocil

Did your tenants initially contact you by email? That would be an easy way of proving you introduced them and not the estate agent.

csgohan4

or a phone bill proving you called or they called you before the EA got involved

blobbi

Thanks for all the input, it is wonderful to have feedback that is independent of us and family or friends.

We have taken some professional advice on this and when the dust has settled, and if I remember, I will follow up here so others can learn from our experience. I have a reminder in the diary so hope to be able to share at a latter point....

badger09

csgohan4 wrote: »

or a phone bill proving you called or they called you before the EA got involved

How would that prove anything, other than that there had been a phone call between landlord and tenant:cool: