Estate Agency Agreement

jrs101

Hello


I have a sole selling rights agreement with some clauses in it which I am told by the estate agent the wording is set by the ombudsmen as advised by the government.

Is that the case?

The clauses in question are:
- If unconditional contracts for the sale of the property are exchanged in the period during which we have sole selling rights, even if the purchaser was not found by us but by another agent or by any other person, including yourself.
- If a memorandum of sale is issued by another estate agent within 6 months of the termination of this sole selling rights agreement to a buyer that we have introduced and with whom an exchange of contract takes place,
-If terms are agreement within 2 years of the termination of this sole selling rights agreement with a buyer that we have introduced and where no other estate agent is involved and where a subsequent exchange of contracts takes place


thanks

SpiderLegs

Are you sure your contract is Sole Agency?
If the EA can’t even grasp the difference between the two then I’d wonder what else they were clueless about.

Lokolo

The first statement means they are sole selling, not sole agency. Get it removed.

jrs101

SpiderLegs wrote: »

Are you sure your contract is Sole Agency?
If the EA can’t even grasp the difference between the two then I’d wonder what else they were clueless about.

Sorry I edited my post, please advise.


To confirm it is a sole selling rights agreement.

Lokolo

OK well yes, they are pretty standard.

But I would never go for a sole selling rights contract.

jrs101

Lokolo wrote: »

OK well yes, they are pretty standard.

But I would never go for a sole selling rights contract.

They may be "standard" but are they, as advised by the estate agent, set by the ombudsmen as advised by the government?

eddddy

jrs101 wrote: »

They may be "standard" but are they, as advised by the estate agent, set by the ombudsmen as advised by the government?

Yes - the Property Ombudsman allows EAs to have 'Sole Selling Rights' and they provide regulations.

But they are more like "red lines that you must not cross", as opposed to "advice" from the government.


As an analogy...

• The government says you must not drive faster than 70mph on a motorway (i.e. it's "a red line that you must not cross" )

• But it would be misleading to say that the government is therefore advising you to drive at 70mph on a motorway at all times.

G_M

There is nothing legally wrong with those terms if the property seller is dumb enough to agree to them.

jrs101

G_M wrote: »

There is nothing legally wrong with those terms if the property seller is dumb enough to agree to them.

Understood.

Can someone advise if the following is negotiable with regard to commission? Is it standard?

Our commission is still payable on the full price negotiated by us in the event that the purchaser refuses to complete the purchase or negotiates a reduction in the purchase price after exchange of contracts due to any misrepresentation made by you or your representatives whether fraudulently negligently or innocently.

G_M

jrs101 wrote: »

Understood.

Can someone advise if the following is negotiable with regard to commission? Is it standard?

Our commission is still payable on the full price negotiated by us in the event that the purchaser refuses to complete the purchase or negotiates a reduction in the purchase price after exchange of contracts due to any misrepresentation made by you or your representatives whether fraudulently negligently or innocently.

Everything is negotiable.


You are the customer.


If the EA wants your business (which they do!) they must offer you a contract that you are willing to accept.


edit: not sure why you are repeating the same query in a new thread. Did the previous replies not please you?


https://forums.moneysavingexpert.com/discussion/comment/75789396#Comment_75789396