Help! Sole selling right s

stellaw

First time to sell property and realised we signed an unfavorable contract, which is the sole selling right with 12 weeks starting from early May.

A person introduced by my friend knew that we are selling property back in Feb this year and visited the house then. But she didn't get back to us until recently, after we signed the contract with the agency. Since we don't know if she is still interested in, we didn't put her name in the list (and honestly, we didn't pay attention to the disclosure part).

My Question is: based on the terms below, are we subject to fees even though we got the potential buyer before putting the property on market?

We don't want to wait until the contract with EA terminates. So I am wondering if our case can be exempted from the fees. I see the below terms quite ambiguous: when they say "to a person who, during the period in which we held Sole Selling Rights, (i) was introduced by us to The Property and/or (ii) came through another source, including yourself", does it mean that i am subject to fees even though my friend approached me before the contract but again during the contract period?

thanks very much!!!!

Terms are like this:

2.3.1 Sole Selling Rights - You will be liable to pay us the Fee as set out overleaf, in addition to any other costs or charges agreed when Unconditional Contracts for the sale of The Property are exchanged to a person who, during the period in which we held Sole Selling Rights, (i) was introduced by us to The Property and/or (ii) came through another source, including yourself.

2.3.4 Exception: Where the purchaser or potential purchaser has been named overleaf prior to the Commencement Date we will not, in any of the situations set out in clause 2.3 above, be entitled to our Fee.

-taff

Subject to fees because you didn't include her on the potential purchaser list.
Not an expert, someone may be along soon to contradict me.

stellaw

Thanks. But if we wait until contract terminates to exchange, is it still subject to fees? Language is unclear...

eddddy

stellaw wrote: »

Terms are like this:

2.3.1 Sole Selling Rights - You will be liable to pay us the Fee as set out overleaf, in addition to any other costs or charges agreed when Unconditional Contracts for the sale of The Property are exchanged to a person who, during the period in which we held Sole Selling Rights, (i) was introduced by us to The Property and/or (ii) came through another source, including yourself.

2.3.4 Exception: Where the purchaser or potential purchaser has been named overleaf prior to the Commencement Date we will not, in any of the situations set out in clause 2.3 above, be entitled to our Fee.

Those terms would be illogical by themselves - but it looks like you've missed out clauses 2.3.2 and 2.3.3.

Does clause 2.3.4 relate to one of the missing clauses?


Is 2.3.2 or 2.3.3 something like:

"You will also be liable to pay us the Fee... if Unconditional Contracts for the sale of The Property are exchanged during the period in which we hold Sole Selling Rights (i.e with anyone who was introduced at any time - except in the case of 2.3.4)."

That's usually how Sole Selling Rights contracts work.


If that's the case, to avoid paying a fee, your buyer:

1) Must have been introduced before the Sole Selling rights period started
2) Must not exchange contracts until the Sole Selling Rights period has finished


So, in theory, your buyer could start applying for a mortgage now, and start the legal stuff - as long as you don't exchange contracts until the 12 weeks is up and you've terminated the EA's contract (in writing).

But I suspect you will end up in a big argument with the EA.

stellaw

Thanks a lot eddddy! 2.3.2 is for sole selling agency and 2.3.3 for multi agency.

I am confused by "to the person who, during the period that we hold the sole selling right, (ii) came through another source, including yourself". My friend approached me in Feb but again recently. He did come to me during the period but not the first time. Does it count in law?

Thanks again.