Estate Agent Demanding Fees

Thrugelmir

The EA would argue that a buyer had been found i.e. the builder within the contract period. Contract exchange being left doesn't mitigate. 

TN1984

MylesMorley said:

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.

Yeah I understand where you're coming from, but having been told a fee would become due if you proceeded, then you go ahead, does it then become implicit that you accepted what you were told? Sorry I don't know, so like I said in my first post you'll get a better response from others. Did you challenge it at the time when first told about it?

MylesMorley

TN1984 said:

MylesMorley said:

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.

Yeah I understand where you're coming from, but having been told a fee would become due if you proceeded, then you go ahead, does it then become implicit that you accepted what you were told? Sorry I don't know, so like I said in my first post you'll get a better response from others. Did you challenge it at the time when first told about it?

Verbally over the phone the EA was told we would not be paying it as that is not what the contract says. We'd accept it if the contract stated that the EA were due the fee if we found the buyer when we were with them, but the fact that it says unconditional contracts is what we're hoping will help us out. 

Sorry if it seems I'm being defensive, appreciate the help  

Tom99

What role did your agent have in introducing the buyer?

Thrugelmir

MylesMorley said:

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.

Are we getting the full story ?  Did you just hope to get this under the radar by delaying completion after the position you found yourselves in? I assume the builder said it was your problem to resolve. 
The EA is no doubt world wise to the stunts that people attempt. Simply waited like yourselves. 

MylesMorley

Tom99 said:

What role did your agent have in introducing the buyer?

Absolutely none 

MylesMorley

Thrugelmir said:

MylesMorley said:

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.

Are we getting the full story ?  Did you just hope to get this under the radar by delaying completion after the position you found yourselves in? I assume the builder said it was your problem to resolve. 
The EA is no doubt world wise to the stunts that people attempt. Simply waited like yourselves. 

Absolutely, and as per the contract that seems fine.  Nothing was finalised until the contract had ended though .

quotememiserable

You must have a property solicitor, why not ask them? I agree from what you say, but maybe there are precendents.

notrouble

It's a clear contract. What is less clear to me (maybe too much speed reading the thread) is

* date you served your (28 day) notice?

* date that notice expired?

* date you exchanged contracts?

Whether or not the buyer was introduced by the agent seems clear. The answer is 'no'. yes the buyer contacted the agent for information, but that was clearly after agreeing the purchase. There was no 'introduction'.

ps - can anyone tell me if it's possible to underline text in a post still and if so how!!?

Thrugelmir

MylesMorley said:

Thrugelmir said:

MylesMorley said:

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.

Are we getting the full story ?  Did you just hope to get this under the radar by delaying completion after the position you found yourselves in? I assume the builder said it was your problem to resolve. 
The EA is no doubt world wise to the stunts that people attempt. Simply waited like yourselves. 

Absolutely, and as per the contract that seems fine.  Nothing was finalised until the contract had ended though .

No one is disputing that.  More in question is the timeline. When did you accept the part exchange offer?