Agent wars

kazzamunga

Had an estate agent to sell a flat, they got a buyer, long story short, the sale fell through. We cancelled our contract, and are with a new agent.

Old agent got back in contact, almost three months later, saying that the original buyer that pulled out wants to make another offer. Now we're not happy with the situation for a whole load of reasons and probably won't go through with it, but is it even legit for agent 1 to get back in touch now that we're in a contract with agent 2?

If we did accept this new offer from the old buyer...would we end up paying both agents?

davidmcn

It's "legit" insofar as it's plausible. Normally when you switch agents, the original one would pass on to the new agents details of interested parties they had been in contact with - you shouldn't need to pay two lots of commission.

kazzamunga

Hmm I don't think so, because it's sole agency - this from the contract:

When you become liable to pay
The fee becomes payable in the event xxxx introduces a purchaser whether directly or indirectly who enters into a binding contract to purchase the property. Introduction may be made by means of sales particulars, the internet, magazine or other advertisements, sign board, letter or personal enquiry through any xxxx office. In the case of a sole agency agreement, the fee becomes payable to us even in the event that another agent introduces the buyer or if any private introduction is made during that period.

It's the 'during that period' that I'm not sure about. This is obviously an old buyer.

eddddy

kazzamunga wrote: »

Hmm I don't think so, because it's sole agency - this from the contract:

When you become liable to pay
The fee becomes payable in the event xxxx introduces a purchaser whether directly or indirectly who enters into a binding contract to purchase the property. Introduction may be made by means of sales particulars, the internet, magazine or other advertisements, sign board, letter or personal enquiry through any xxxx office. In the case of a sole agency agreement, the fee becomes payable to us even in the event that another agent introduces the buyer or if any private introduction is made during that period.

It's the 'during that period' that I'm not sure about. This is obviously an old buyer.

'During that period' almost certainly means during EA2's sole agency period.

Since your buyer was introduced by EA1 before EA2's sole agency period began, you wouldn't have to pay EA2 a fee. (So you just have to pay EA1.)

But you'd need to read the whole contract to make sure.


FWIW, the contract you quote is a bit dodgy.

• They talk about 'sole agency' but then describe something closer to 'sole selling rights'.
• And I'm not sure that being 'introduced by internet adverts, sign boards etc' would stand up in court.

kazzamunga

Thanks - EA2 seems better than EA1 in terms of the contract, but seems like we've had two pretty crappy experiences compared to a lot of other contracts. EA1's contract 'paused' while the property was under offer and started again afterwards. And the 3-week notice period started at the end of the 8-week contract, so it was actually 11 weeks + 3.

eddddy

kazzamunga wrote: »

And the 3-week notice period started at the end of the 8-week contract, so it was actually 11 weeks + 3.

Is that EA a member of The Property Ombudsman Scheme?

If so, that would be a breach of their mandatory code of practice:

5s Your contract must allow for the required notice of termination to be given before the end of the term, such that termination by the client can occur at the expiry of the minimum term.

Link: https://www.tpos.co.uk/images/Codes_2019_a5/TPOE27-8_Code_of_Practice_for_Residential_Estate_Agents_A5_-_Effective_1_June_2019.pdf

Edit to add...

But that's just for info - there's no real benefit to complaining now.

Mutton_Geoff

The second (new) agent could claim their fee on the basis that the prospective buyer became aware that the property was on the market still through the efforts of the new agent (ie Rightmove ad).


You could easily be liable for two sets of fees, even if the buyer then makes contact through the new agent. Very tricky ground and I would get in writing from both agents about this interested party and based on experience, not waste your time with another offer from them, however tempting.


I was taken to court by an agent in very similar circumstances and lost.

kazzamunga

Mutton_Geoff wrote: »

The second (new) agent could claim their fee on the basis that the prospective buyer became aware that the property was on the market still through the efforts of the new agent (ie Rightmove ad).


You could easily be liable for two sets of fees, even if the buyer then makes contact through the new agent. Very tricky ground and I would get in writing from both agents about this interested party and based on experience, not waste your time with another offer from them, however tempting.


I was taken to court by an agent in very similar circumstances and lost.

Ouch! That was what I was worried about, and why would EA1 care about that as long as they got their money! I forwarded to the solicitor to see their view, but I smell a rat and I am so sick of these guys and their shady behaviours to make a buck. They always seem to be right on the edge of what's legally or morally OK.

G_M

Tell the agents to resolve this together. The obvious answer is for you to pay 50% of the fees to each agent.

If they agree, in writing - fine.

If they refuse, you decline the buyer's offer and neither agent receives a penny. The current (2nd) agent may not be too worried as they still have a contract with you and may hope to find another buyer and get their full fee.

So you point out that if they fail to compromise you will serve notice to end your contract with them (as soon as the contract allows) and move to agent 3!

eddddy

Read the contract with the second EA before offering them anything.

The 'fragment' of the contract you posted suggests that the second agent isn't due any fee (because the buyer was introduced before their sole agency period started).

Bizzywizard

If you were introduced to the buyer by your first estate agent and you then agree the sale when with the 2nd agent. The first agent will be entitled to their fee on exchange of contracts.

If your second is Purple Bricks then you will pay even if they don't sell your property.