Estate Agent Fees

LittleMac13

Hi everyone, apologies if I am posting this in the wrong place.

I'm just after a bit of advice in regards to the recent sale of our home. It went up the September (2018) , our contract with Manners and Harrison (also known as Sequence) expired in the January, but we stayed with them. We accepted an offer on our home in the March.

It has been a private sale, as we had gone to view our new home and the lady who owns it in turn purchased ours.

In the contract it states if you are part exchanging you don't pay fees, however they are adamant they need the money based on them "introducing" her as a buyer.

I asked them, "then, who is it you introduced?" and of course they can't tell me her name, address, number or anything, as they haven't had one ounce of anything to do with her or the sale.

We're currently refusing to pay them and their argument is because they put it online, and I advised we had exchanged mobile numbers at the viewing, so she didn't even have to look online as she came round my house for a brew and a look around.

I've seen Resolver may be able to help, has anybody used this before?

Any help would be greatly appreciated!

Lokolo

There are usually two types of selling contracts; Sole Selling. This means that if the property is sold within the contract, the money is owed, even if you found the buyer. If it is Sole Agency then if they introduce the buyer, the fee is owed. What does your contract say?

I don't believe your definition of part exchanging as anything to do with it.

lisyloo

What type of contract do you have - sole selling? Or sole agent?
This is crucial to whether you owe the money so please check.

LittleMac13

I'll have to double check the contract when I get home!

eddddy

LittleMac13 wrote: »

It went up the September (2018) , our contract with Manners and Harrison (also known as Sequence) expired in the January, but we stayed with them. We accepted an offer on our home in the March.

Your contract almost certainly won't have expired - it would continue until you terminate it by giving written notice.

(I suspect you may mean the minimum contract period ended in January, but you decided to let the contract continue.)

LittleMac13 wrote: »

In the contract it states if you are part exchanging you don't pay fees, however they are adamant they need the money based on them "introducing" her as a buyer.

So do you have a "sole agency" contract, as opposed to a "sole selling rights" contract?

If so, you could point the EA towards this article by the Property Ombudsman. It's actaully about dual fees, but using this definition of an "introduction", it's pretty clear that your EA didn't introduce your buyer :

An effective introduction must evidence that the agent carried out an act that initiated the buyer’s reaction to the property. As such, there is a need for a defined transaction event to occur. It is TPO’s view that this can be most clearly evidenced by an agent carrying out a viewing.

When considering if an agent has introduced the buyer, TPO expects to see:

• Evidence that the viewing has been booked, confirmed in writing to both seller and buyer and taken place. In this way, TPO will be in a position to state that, following the viewing, the agent that conducted the viewing introduced the buyer.

Link: https://www.tpos.co.uk/news-media-and-press-releases/press-releases/item/under-embargo

eddddy

.... so based on the info you've given and assuming you have a "sole agency" contract, perhaps the steps to follow are:

• Instruct your solicitor not to pay the EA

• Follow the EA's complaint procedure

• Complain to the Property Ombudsman (the EA you mention is a member)

• If you disagree with the Property Ombudsman's decision, do nothing and wait to see if the EA sues you

hazyjo

Really not sure about your 'part exchange' definition either.


Would have only expected that to apply to selling to developers where you're trading your home for one of their new ones.


However, the fact you found your own buyer is what you need to concentrate on and, as above, that totally depends on what sort of contract you have and what the terms are.

stator

Are the agents who are selling your house the same agents who are selling the house you are buying?

LittleMac13

No it is different agents thankfully. I still need to check the contract but I'm sure its sole agent. I will double check this today!

System

Have a read here


https://www.propertyindustryeye.com/why-court-decided-that-sellers-did-not-have-to-pay-commission-to-first-agent/


https://swarb.co.uk/foxtons-ltd-v-pelkey-bicknell-and-another-ca-23-apr-2008/

googler

On the face of it, the EA has been doing work for you for 6 mths.

You're trying to find a way out of paying them anything at all for this work.

They're trying to recoup some or all of their losses, having paid out sundry amounts relating to your sale.

Don't you feel honour-bound to at least cover their costs/expenses?