Part Exchanging House While On The Market

NorthernJordan

Hello All,

I'm just after a little advice as google does not seem to be yielding any results.

I've had my house on the market for some time and it just isn't selling. I've got the opportunity on a new build with part exchange and if I get the deal I need/want I will be pursuing this.

What I am concerned about is the estate agent still asking for their commission even though they have not managed to find a buyer. I cannot find anything to suggest this is normal practice regarding part exchange but the below clauses of the contract stick in my mind.

Am I overthinking or is this a legitimate concern?

For reference we are outside the sole agent agreement and have appointed another agent with much more basic T&Cs)

2.2 The Seller will be liable to pay the Commission Fee to the Agent, in addition to any other costs or charges agreed, in each of the following
circumstances:-
• if unconditional contracts for the sale of the Property are exchanged in the period during which the Countrywide Agency is in force, even if the Buyer was not found by the Agent but by another agent or by any other person, including the Seller;
• if unconditional contracts for the sale of the Property are exchanged after the expiry of the period during which the Countrywide Agency is in force but to a Buyer who was introduced to the Seller during that period or with whom the Agent had negotiations about the Property
during that period. However, the Seller will not be liable to pay the Commission Fee in any of these circumstances if the unconditional contracts for the sale of the Property are exchanged six months after the expiry of the period during which the Countrywide Agency is in force and where the Seller has appointed another estate agent whose activities have resulted in the sale of the Property or twenty four months after the expiry of the Countrywide Agency in all other circumstances.
2.3 On expiry of the Agency Period, unless terminated by either side by a minimum of 14 days’ written notice expiring on the last day of the Agency
Period, the agency shall continue as the Countrywide Agency until either:-
• it is terminated by either the Seller or the Agent on 14 days’ written notice; or
• the Seller by 14 days’ written notice to be served not earlier than the last day of the Agency Period converts the Countrywide Agency into a
Multiple Agency, which Multiple Agency shall then continue on the terms set out in clause 8 of the Agency Agreement and in clause 3
below; or
• the Seller appoints another agent without giving any or any adequate notice, in which case the Countrywide Agency will continue to apply save that the Multiple Agency Commission Fee would be payable if a fee becomes due.

Nobbie1967

Have you cancelled the first agent's contract or gone multi-agency?

How long is the minimum contract length with the new agent?

Sounds like if you exchange contracts on the PX within the term of your current contract then you will be liable for the agent's fees. You need to cancel the contract with the EA as soon as possible and ensure exchange on the PX takes place after this date.

NorthernJordan

Nobbie1967 wrote: »

Have you cancelled the first agent's contract or gone multi-agency?

How long is the minimum contract length with the new agent?

Sounds like if you exchange contracts on the PX within the term of your current contract then you will be liable for the agent's fees. You need to cancel the contract with the EA as soon as possible and ensure exchange on the PX takes place after this date.

1. We have gone multi agent.

2. No minimum contract with the new agent due to retaining existing agent.

3. That's what I was thinking. Re-reading the terms of the contract it appears to me that providing I give 14 days notice to cancel the contract I will not be liable for fees. Although the section below is not easy to interpret:

However, the Seller will not be liable to pay the Commission Fee in any of these circumstances if the unconditional contracts for the sale of the Property are exchanged six months after the expiry of the period during which the Countrywide Agency is in force and where the Seller has appointed another estate agent whose activities have resulted in the sale of the Property or twenty four months after the expiry of the Countrywide Agency in all other circumstances.

Nobbie1967

NorthernJordan wrote: »

1. We have gone multi agent.

2. No minimum contract with the new agent due to retaining existing agent.

3. That's what I was thinking. Re-reading the terms of the contract it appears to me that providing I give 14 days notice to cancel the contract I will not be liable for fees. Although the section below is not easy to interpret:

However, the Seller will not be liable to pay the Commission Fee in any of these circumstances if the unconditional contracts for the sale of the Property are exchanged six months after the expiry of the period during which the Countrywide Agency is in force and where the Seller has appointed another estate agent whose activities have resulted in the sale of the Property or twenty four months after the expiry of the Countrywide Agency in all other circumstances.

I think that is saying that even if they introduced a buyer to you while sole agent, then you would not be liable for their fee if the transaction takes place more than two years later, or after six months if another agent was involved.

ethank

You need to review the multi-agency terms and see what it says about selling yourself.