Agreement with estate agent

aroominyork

My father, who as moved into a care home, has asked me to sell his flat. I know one person who is interested but I want to put it on the market as I think I can get a higher price. Is it common practice to have a written agreement with the estate agent that if we end up selling to [named person] the estate agent does not receive a commission?

ACG

Yes, but you need to make them beforehand and get something in writing to protect yourself.

aroominyork

ACG wrote: »

Yes, but you need to make them beforehand and get something in writing to protect yourself.

Thanks - and presumably raise the issue with the agent after agreeing their commission so they don't use it as a reason to charge a slightly higher rate.

Comms69

aroominyork wrote: »

Thanks - and presumably raise the issue with the agent after agreeing their commission so they don't use it as a reason to charge a slightly higher rate.

NO, obviously not after... Seriously?


You agree everything at the time. You wouldn't want them to say "oh it's 4% more" after you signed....

aroominyork

I mean after agreeing a fee but before signing.

AH1509

most estate agents have a clause that if they introduced the client they get the commission (like multi agent).
They have to prove that the buyer came through them if it ever got to that stage.
You have the upper hand its a slow market so make sure you are clear what you want.

Comms69

aroominyork wrote: »

I mean after agreeing a fee but before signing.

Yes but they can then just change the fee?

davidmcn

Comms69 wrote: »

Yes but they can then just change the fee?

Yes, but they're less likely to backtrack on a figure they've already agreed in principle.

eddddy

An EA's standard 'Sole Agency Agreement' should be fine for you, because:

• The person you know was introduced before the agreement started
• The person you know was not introduced by an EA

So no fee would be payable to the EA - but you should check this.

But it's definitely best to tell the EA about 'the person' anyway. (I can't see why they would increase their fee because of this.)

If 'the person' makes an offer, you could even say to an EA - "I've got an offer of £x, I'll give you 2 weeks to get a better offer".


BUT... you should avoid an EA that uses 'Sole Selling Rights' contracts - as they would expect a fee, if you sold to 'the person'. (You would need to negotiate special terms to avoid this.)