Estate Agent Fees - buyers withdrawn

jpm123

Hello.

We’re about 16 weeks into selling our house, and have received a call that our buyers are pulling out, as they in turn have lost their buyers.

We’ve decided to call it quits - we’re not going to re-advertise with the this Estate Agents again.

Does anyone know if we’ll be liable for fees to the estate agents?

They’ve done work for us (I.e. advertising, chasing, photos etc.) so I guess they’ll feel ‘entitled’ to some sort of recompense, but I’m wondering from a legal standpoint what they may be entitled to?

There is a ‘ready, willing and able’ clause which entitles then to a % of the fee but I’m not sure this qualifies?

Thank you

Comms69

no idea - what does your contract say?

SmashedAvacado

You may have to refund the cost of photos / something nominal. It will be in your contract. They will ask you for the money if you don't use them again.

G_M

Read your contract. We can't!

What were the terms of the contract that you negotiated at the start?

What does it say about termination or cancelation? Is there a minimum term? A notice period? A penalty?

eddddy

You need to check your contract for phrases like 'termination' or 'withdrawal' - and see if any fee is mentioned.

Don't confuse it with 'cancellation' - that normally relates to cancelling in the first 14 days.

FWIW, I always try to avoid EAs who charge termination fees / withdrawal fees - because it often feels like paying them for failing. (i.e they've been unable to find a buyer who goes on to exchange, so why should I pay them?)

In areas where the property market is buoyant, most EAs don't even mention termination/withdrawal fees - because they make enough money without them.

But I've seen them more an areas where the market is more stagnant.

ReadingTim

jpm123 wrote: »

We’ve decided to call it quits - we’re not going to re-advertise with the this Estate Agents again.

Calling it quits with that EA, or calling it quits on selling at all?

Obviously no-one knows what your contract says except you and the EA, but don't feel that any other agent is necessarily any more likely get you a better price or more reliable buyer than the current lot...

googler

eddddy wrote: »

FWIW, I always try to avoid EAs who charge termination fees / withdrawal fees - because it often feels like paying them for failing. (i.e they've been unable to find a buyer who goes on to exchange, so why should I pay them?)

... because they've spent money on your behalf to various third-party suppliers that they won't get back? For instance;

Sign supplier
Photographer
Printer (of brochures/schedules)
Rightmove etc.
Local Papers (in case of print advertising)
(In Scotland) surveyor who provided Home Report

eddddy

googler wrote: »

... because they've spent money on your behalf to various third-party suppliers that they won't get back? For instance;

Sign supplier
Photographer
Printer (of brochures/schedules)
Rightmove etc.
Local Papers (in case of print advertising)
(In Scotland) surveyor who provided Home Report

EAs are 'grown-ups' and they're business people.

When they offer a 'no-sale, no fee' contract they understand that they will lose money if they don't sell the property. That's part of their business model.


And they often say things to me like...

"We can achieve £x for your property."
and/or
"We have lots of prospective buyers who are desperate for a property like yours"


Why should I pay them when they are wrong - or perhaps fibbing to me to get me to sign-up with them?

HHarry

As others have said you'll need to check your specific contract - but as an example I've just terminated a contract which had a £250 charge for the photos if terminated in the first 4 weeks and no charge thereafter.

Comms69

eddddy wrote: »

EAs are 'grown-ups' and they're business people.

When they offer a 'no-sale, no fee' contract they understand that they will lose money if they don't sell the property. That's part of their business model.


And they often say things to me like...

"We can achieve £x for your property."
and/or
"We have lots of prospective buyers who are desperate for a property like yours"


Why should I pay them when they are wrong - or perhaps fibbing to me to get me to sign-up with them?

You shouldn’t, but there’s absolutely no evidence that the OP signed on those terms.

In addition such terms usually attract a higher fee

googler

eddddy wrote: »

When they offer a 'no-sale, no fee' contract they understand that they will lose money if they don't sell the property. That's part of their business model.

... and there's nothing that forbids them from varying this business model to recover some or all of their outgoings if one party or the other pulls out of an agreed transaction.

And they often say things to me like...

"We can achieve £x for your property."
and/or
"We have lots of prospective buyers who are desperate for a property like yours"


Why should I pay them when they are wrong - or perhaps fibbing to me to get me to sign-up with them?

That's not what's happening here. The chain has fallen apart, through no apparent fault of the agent concerned.

If you don't want to pay a withdrawal or cancellation fee, then look for an agent whose terms match your wants.