Estate Agent Demanding Fees

MylesMorley

Hi, my partner had her house on the market with an estate agent, and the contract had sole selling rights. 

After the house being on the market for nearly 2 years, her ex decided to use it towards a part exchange . We gave notice to the estate agent that we would be leaving them, and once this period wad over they were going to part exchange the house to the new build company .

In the cooling off period, the new build company contacted the existing estate agents asking questions on the house, essentially making them aware that they were using the house as a part exchange .

2 months down the line we get an email from the estate agents demanding the selling fee of 3k. 

Is there anyway out of paying this? Nothing was legally signed until they were no longer with the estate agent due to the clause .

If we have to pay the 3k, is it worth arguing with the estate agent that we won't be paying it in full? 

Any advice would me much appreciated. Thanks. 

AdrianC

The clue is "SOLE SELLING RIGHTS".

They are owed their fees if you sell the property. No matter whether the EA introduced the buyer or not.

notrouble

It sounds as though you agreed to a sale of the property during the notice period ('cooling off period') - ie the ontract was still active. As you say it was a sole selling rights contract (and without seeing your contract we can't comment on that), the fee is due.

MylesMorley

unconditional contracts werent exchanged though. The wording seems weird? 

steampowered

Looking at that clause, the fee will be payable under item (1) if your partner exchanged contracts with the builder while the agent had sole selling rights.

Your partner will have exchanged contracts with the builder at some point during the sale process. The estate agent contract has a 28 day termination period.

Did your partner exchange contracts with the builder less than 28 days of giving the agent notice that she would be leaving with them? If so, she is liable for the fee. If it was more than 28 days, it sounds like she is not liable for the fee.

Personally I would just write back to the EA saying that the fee was not payable on the basis that contracts were not exchanged until after the agency agreement had terminated, in line with the EA's terms and conditions.

It is quite common for estate agents to "have a go" at claiming fees for houses they were involved with even if the fee is not properly due under the terms of the contract. I wouldn't offer part payment as if you offer part they'll want the whole thing. 

Tom99

If contracts were exchanged after your 28 days written notice had expired then the agent would have to claim that they were the ones to introduce you to the purchaser, which does not sound likely.

Ask the agent, in writing, why they think they are due a fee.

MylesMorley

steampowered said:

Looking at that clause, the fee will be payable under item (1) if your partner exchanged contracts with the builder while the agent had sole selling rights.

Your partner will have exchanged contracts with the builder at some point during the sale process. The estate agent contract has a 28 day termination period.

Did your partner exchange contracts with the builder less than 28 days of giving the agent notice that she would be leaving with them? If so, she is liable for the fee. If it was more than 28 days, it sounds like she is not liable for the fee.

Personally I would just write back to the EA saying that the fee was not payable on the basis that contracts were not exchanged until after the agency agreement had terminated, in line with the EA's terms and conditions.

It is quite common for estate agents to "have a go" at claiming fees for houses they were involved with even if the fee is not properly due under the terms of the contract. I wouldn't offer part payment as if you offer part they'll want the whole thing. 

Thanks very much for your detailed reply. The contracts were exchanged on the 10th December, after the contract with the EA ended on the 3rd December, due to this exact reason. 

MylesMorley

Tom99 said:

If contracts were exchanged after your 28 days written notice had expired then the agent would have to claim that they were the ones to introduce you to the purchaser, which does not sound likely.

Ask the agent, in writing, why they think they are due a fee.

 This was their reasoning when asked. That contradicts the contract we've signed though? 

TN1984

MylesMorley said:

steampowered said:

Looking at that clause, the fee will be payable under item (1) if your partner exchanged contracts with the builder while the agent had sole selling rights.

Your partner will have exchanged contracts with the builder at some point during the sale process. The estate agent contract has a 28 day termination period.

Did your partner exchange contracts with the builder less than 28 days of giving the agent notice that she would be leaving with them? If so, she is liable for the fee. If it was more than 28 days, it sounds like she is not liable for the fee.

Personally I would just write back to the EA saying that the fee was not payable on the basis that contracts were not exchanged until after the agency agreement had terminated, in line with the EA's terms and conditions.

It is quite common for estate agents to "have a go" at claiming fees for houses they were involved with even if the fee is not properly due under the terms of the contract. I wouldn't offer part payment as if you offer part they'll want the whole thing. 

Thanks very much for your detailed reply. The contracts were exchanged on the 10th December, after the contract with the EA ended on the 3rd December, due to this exact reason. 

So the 28 day notice period ended on 3rd December? I'm not a legal expert and I am sure others can give you a more reliable answer, but just from reading the clause, if the 28 day period ended on 3rd December and you exchanged on 10th December, it does not sound like a fee is due IMO.

Edit; seen your further reply. Seems they identified a fee would become due if you part exchanged and confirmed this to you well before it happened? 

AdrianC

28 days notice plus fees due on exchange means they'd never be due a fee, since exchange is never within 28 days of an offer being accepted.

The key is that the sale process was started while the contract was in force - and the EA can demonstrate that. They were involved in discussion with the eventual buyer in October, and explained to the vendor in early November. The contract wasn't terminated until December.

MylesMorley

TN1984 said: 

MylesMorley said:

steampowered said:

Looking at that clause, the fee will be payable under item (1) if your partner exchanged contracts with the builder while the agent had sole selling rights.

Your partner will have exchanged contracts with the builder at some point during the sale process. The estate agent contract has a 28 day termination period.

Did your partner exchange contracts with the builder less than 28 days of giving the agent notice that she would be leaving with them? If so, she is liable for the fee. If it was more than 28 days, it sounds like she is not liable for the fee.

Personally I would just write back to the EA saying that the fee was not payable on the basis that contracts were not exchanged until after the agency agreement had terminated, in line with the EA's terms and conditions.

It is quite common for estate agents to "have a go" at claiming fees for houses they were involved with even if the fee is not properly due under the terms of the contract. I wouldn't offer part payment as if you offer part they'll want the whole thing. 

Thanks very much for your detailed reply. The contracts were exchanged on the 10th December, after the contract with the EA ended on the 3rd December, due to this exact reason. 

So the 28 day notice period ended on 3rd December? I'm not a legal expert and I am sure others can give you a more reliable answer, but just from reading the clause, if the 28 day period ended on 3rd December and you exchanged on 10th December, it does not sound like a fee is due IMO.

Edit; seen your further reply. Seems they identified a fee would become due if you part exchanged and confirmed this to you well before it happened? 

Yeah I get that, but it's not in the contract. He's basing that fee off the contract, and it doesn't indicate that.